NasdaqGS:INOV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Overvalued with concerning outlook.


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

-1.7%

INOV

-0.7%

US Healthcare Services

0.4%

US Market


1 Year Return

51.0%

INOV

13.7%

US Healthcare Services

6.9%

US Market

Return vs Industry: INOV exceeded the US Healthcare Services industry which returned 13.7% over the past year.

Return vs Market: INOV exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

INOVIndustryMarket
7 Day-1.7%-0.7%0.4%
30 Day-13.7%-3.5%-1.1%
90 Day1.6%-7.0%-0.5%
1 Year51.0%51.0%13.9%13.7%9.3%6.9%
3 Year2.1%2.1%57.1%56.6%45.8%36.4%
5 Yearn/a45.6%44.6%62.9%45.1%

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 compared to its fair value and its price relative to the market?

3.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: INOV ($14.81) is trading above our estimate of fair value ($12.29)

Significantly Undervalued: INOV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INOV is unprofitable, so we can't compare its PE Ratio to the Healthcare Services industry average.

PE vs Market: INOV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate INOV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INOV is good value based on its PB Ratio (3.4x) compared to the US Healthcare Services industry average (3.7x).


Next Steps

Future Growth

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

140.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INOV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: INOV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: INOV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: INOV's revenue (8.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: INOV's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: INOV's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Inovalon Holdings performed over the past 5 years?

-51.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INOV is unprofitable, and losses have increased over the past 5 years at a rate of -51.2% per year.

Accelerating Growth: Unable to compare INOV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: INOV is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (3.3%).


Return on Equity

High ROE: INOV has a negative Return on Equity (-2.35%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: INOV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: INOV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Inovalon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: INOV's short term assets ($272.3M) exceeds its short term liabilities ($134.1M)

Long Term Liabilities: INOV's short term assets (272.3M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: INOV's debt to equity ratio (148%) is considered high

Reducing Debt: INOV's debt to equity ratio has increased from 1.3% to 148% over the past 5 years.

Debt Coverage: INOV's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: INOV is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: INOV has a low level of unsold assets or inventory.

Debt Coverage by Assets: INOV's 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate INOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate INOV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if INOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INOV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INOV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Keith Dunleavy (50yo)

5.8yrs

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

Compensation vs. Market: Keith's total compensation ($USD210.33K) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Keith's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.6yrs

Average Tenure

48.5yo

Average Age

Experienced Management: INOV's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: INOV's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • George Price

    Investor Relations

    • Tenure: 0yrs
  • Keith Dunleavy (50yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$210.33k
  • Bob Wychulis (64yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$1.56m
  • Eric Sullivan

    Senior Vice President of Innovation & Data Strategies

    • Tenure: 0yrs
  • Jason Capitel (47yo)

    Chief Operating Officer

    • Tenure: 1.5yrs
    • Compensation: US$7.67m
  • Kim Collins

    Senior Vice President of Corporate Marketing & Communications

    • Tenure: 0yrs
  • Mike Burgin (45yo)

    Chief Product Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.39m
  • Jonathan Boldt (34yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.02m
  • Peter De Bock (56yo)

    Chief Administrative Officer

    • Tenure: 0.7yrs
  • Ingrid Olsen

    Chief People Officer

    • Tenure: 0.08yrs

Board Members

  • Bill Teuber (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$250.01k
  • Lee Roberts (66yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$250.01k
  • Denise Fletcher (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$250.01k
  • Mark Pulido (66yo)

    Non-Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$231.26k
  • Bill Green (65yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$250.01k
  • André Hoffmann (61yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$250.01k
  • Keith Dunleavy (50yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$210.33k
  • Zak Kohane (58yo)

    Independent Director

    • Tenure: 0.8yrs

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$2.284b
  • Shares outstanding: 154.21m
  • Website: https://www.inovalon.com

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 Analysis2019/10/20 00:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.