NasdaqGS:INOV

Stock Analysis Report

Executive Summary

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare.

Snowflake

Fundamentals

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

How has Inovalon Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

NasdaqGS:INOV

0.6%

US Healthcare Services

1.1%

US Market


1 Year Return

46.7%

NasdaqGS:INOV

29.2%

US Healthcare Services

4.7%

US Market

INOV outperformed the Healthcare Services industry which returned 29.4% over the past year.

INOV outperformed the Market in United States of America which returned 4.8% over the past year.


Share holder returns

INOVIndustryMarket
7 Day-1.5%0.6%1.1%
30 Day6.2%5.7%4.3%
90 Day22.6%20.7%2.9%
1 Year46.7%46.7%29.3%29.2%7.0%4.7%
3 Year-18.8%-18.8%70.2%69.7%47.4%37.7%
5 Yearn/a69.1%68.0%61.6%43.6%

Price Volatility Vs. Market

How volatile is Inovalon Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Inovalon Holdings undervalued based on future cash flows and its price relative to the stock market?

3.42x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Inovalon Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Inovalon Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Inovalon Holdings is loss making, we can't compare its value to the US Healthcare Services industry average.

Inovalon Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Inovalon Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Inovalon Holdings is good value based on assets compared to the US Healthcare Services industry average.


Next Steps

Future Growth

How is Inovalon Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

140.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Inovalon Holdings's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Inovalon Holdings's earnings are expected to grow significantly at over 20% yearly.

Inovalon Holdings's revenue growth is expected to exceed the United States of America market average.

Inovalon Holdings's earnings growth is expected to exceed the United States of America market average.

Inovalon Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Inovalon Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Inovalon Holdings performed over the past 5 years?

-44.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Inovalon Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Inovalon Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Inovalon Holdings's 1-year growth to the US Healthcare Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Inovalon Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Inovalon Holdings used its assets less efficiently than the US Healthcare Services industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Inovalon Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Inovalon Holdings's financial position?


Financial Position Analysis

Inovalon Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Inovalon Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Inovalon Holdings's level of debt (147.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.2% vs 147.1% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Inovalon Holdings is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Inovalon Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Inovalon Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Inovalon Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Inovalon Holdings has not reported any payouts.

Unable to verify if Inovalon Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Inovalon Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Inovalon Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Inovalon Holdings's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Keith Dunleavy (50yo)

5.5yrs

Tenure

US$210,325

Compensation

Dr. Keith R. Dunleavy, M.D., has been the Chairman of Inovalon Holdings, Inc. since 2006 and its Chief Executive Officer since 1998. Dr. Dunleavy is responsible for the overall execution of Inovalon Holdin ...


CEO Compensation Analysis

Keith's remuneration is lower than average for companies of similar size in United States of America.

Keith's compensation has increased whilst company is loss making.


Management Age and Tenure

1.7yrs

Average Tenure

48.5yo

Average Age

The average tenure for the Inovalon Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

65.5yo

Average Age

The tenure for the Inovalon Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Inovalon Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$1,836,95514 May 19
Keith Dunleavy
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares136,995
Max PriceUS$13.60
BuyUS$221,10014 Nov 18
Jason Capitel
EntityIndividual
Role
Chief Operating Officer
Shares20,000
Max PriceUS$11.06

Ownership Breakdown


Management Team

  • Mike Burgin (45yo)

    Chief Product Officer

    • Tenure: 1.7yrs
    • Compensation: $1.39m
  • John Spitz

    Senior Vice President of Business Solutions & Sales

    • Tenure: 3.8yrs
  • Jason Capitel (47yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: $7.67m
  • Keith Dunleavy (50yo)

    Chairman & CEO

    • Tenure: 5.5yrs
    • Compensation: $210.33k
  • Bob Wychulis (64yo)

    President

    • Tenure: 5.2yrs
    • Compensation: $1.56m
  • Kim Collins

    Senior Vice President of Corporate Marketing & Communications

  • Jonathan Boldt (34yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: $1.02m
  • Peter De Bock (56yo)

    Chief Administrative Officer

    • Tenure: 0.4yrs
  • Eric Sullivan

    Senior Vice President of Innovation & Data Strategies

  • George Price

    Investor Relations


Board Members

  • Bill Teuber (67yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: $250.01k
  • Lee Roberts (66yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: $250.01k
  • Denise Fletcher (70yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: $250.01k
  • Mark Pulido (66yo)

    Non-Independent Director

    • Tenure: 1.3yrs
    • Compensation: $231.26k
  • Bill Green (65yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: $250.01k
  • André Hoffmann (61yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: $250.01k
  • Keith Dunleavy (50yo)

    Chairman & CEO

    • Tenure: 13.5yrs
    • Compensation: $210.33k
  • Zak Kohane (58yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

Inovalon Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inovalon Holdings, Inc.
  • Ticker: INOV
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: health care technology
  • Sector: healthcare
  • Market Cap: US$2.293b
  • Shares outstanding: 153.25m
  • Website: Click here

Number of Employees


Location

  • Inovalon Holdings, Inc.
  • 4321 Collington Road
  • Bowie
  • Maryland
  • 20716
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INOVNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 2015
IOVDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2015

Biography

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the hea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 00:44
End of Day Share Price2019/07/15 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.