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Premier

Nasdaq:PINC
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PINC
Nasdaq
$5B
Imp Market Cap
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Last updated 2019/05/24 00:35
Company description

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The last earnings update was 17 days ago. More info.

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PINC Share Price and Events
7 Day Returns
-3.9%
NasdaqGS:PINC
2.8%
US Healthcare
0.2%
US Market
1 Year Returns
12.3%
NasdaqGS:PINC
0.4%
US Healthcare
2.9%
US Market
PINC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Premier (PINC) -3.9% 8.9% -1% 12.3% 16.7% 22.8%
US Healthcare 2.8% 7.7% -6.7% 0.4% 23.4% 63.5%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • PINC outperformed the Healthcare industry which returned 0.4% over the past year.
  • PINC outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
PINC
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Premier to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Premier.

NasdaqGS:PINC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PINC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.688 (1 + (1- 21%) (3.34%)) 		0.803
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.803 * 5.96%) 		7.52%

Discounted Cash Flow Calculation for NasdaqGS:PINC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Premier is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PINC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.52%)
2019 358.60 Analyst x6 333.53
2020 378.56 Analyst x4 327.47
2021 411.22 Analyst x2 330.85
2022 555.81 Analyst x1 415.91
2023 606.30 Analyst x1 421.97
2024 648.17 Est @ 6.91% 419.57
2025 684.81 Est @ 5.65% 412.29
2026 717.51 Est @ 4.78% 401.77
2027 747.38 Est @ 4.16% 389.23
2028 775.27 Est @ 3.73% 375.53
Present value of next 10 years cash flows $3,828.13
NasdaqGS:PINC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $775.27 × (1 + 2.73%) ÷ (7.52% – 2.73%) 		$16,634.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,634.30 ÷ (1 + 7.52%)10 		$8,057.41
NasdaqGS:PINC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,828.13 + $8,057.41 		$11,885.54
Equity Value per Share
(USD)		 = Total value / Shares Outstanding
= $11,885.54 / 126.37 		$94.05
NasdaqGS:PINC Discount to Share Price
Calculation Result
Value per share (USD) From above. $94.05
Current discount Discount to share price of $36.41
= -1 x ($36.41 - $94.05) / $94.05 		61.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Premier is available for.
Intrinsic value
>50%
Share price is $36.41 vs Future cash flow value of $94.05
Current Discount Checks
For Premier to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Premier's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Premier's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Premier's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Premier's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PINC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.79
NasdaqGS:PINC Share Price ** NasdaqGS (2019-05-23) in USD $36.41
United States of America Healthcare Industry PE Ratio Median Figure of 56 Publicly-Listed Healthcare Companies 22.38x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Premier.

NasdaqGS:PINC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PINC Share Price ÷ EPS (both in USD)

= 36.41 ÷ -0.79

 -46.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Premier is loss making, we can't compare its value to the US Healthcare industry average.
  • Premier is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Premier's expected growth come at a high price?
Raw Data
NasdaqGS:PINC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -46.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts		 7.2%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 42 Publicly-Listed Healthcare Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Premier, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Premier's assets?
Raw Data
NasdaqGS:PINC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-9.80
NasdaqGS:PINC Share Price * NasdaqGS (2019-05-23) in USD $36.41
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NasdaqGS:PINC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PINC Share Price ÷ Book Value per Share (both in USD)

= 36.41 ÷ -9.80

 -3.71x

* Primary Listing of Premier.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Premier has negative assets, we can't compare the value of its assets to the US Healthcare industry average.
X
Value checks
We assess Premier's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
    5. Premier has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Premier expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Premier expected to grow at an attractive rate?
  • Premier's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Premier's earnings growth is positive but not above the United States of America market average.
  • Premier's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PINC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PINC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 7.2%
NasdaqGS:PINC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts -8.7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PINC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PINC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 1,551 712 232 1
2022-06-30 1,453 658 192 1
2021-06-30 1,325 551 200 8
2020-06-30 1,268 516 179 17
2019-06-30 1,681 503 225 19
NasdaqGS:PINC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,680 506 -45
2018-12-31 1,683 514 -414
2018-09-30 1,672 493 -827
2018-06-30 1,661 508 191
2018-03-31 1,630 488 200
2017-12-31 1,585 460 223
2017-09-30 1,532 425 342
2017-06-30 1,455 392 76
2017-03-31 1,353 375 492
2016-12-31 1,272 375 872
2016-09-30 1,205 391 418
2016-06-30 1,163 371 818

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Premier's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Premier's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PINC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Premier Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PINC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 5.12 5.12 5.12 1.00
2022-06-30 3.98 3.98 3.98 1.00
2021-06-30 2.95 3.09 2.76 3.00
2020-06-30 1.64 2.92 0.34 6.00
2019-06-30 1.51 2.06 0.73 5.00
NasdaqGS:PINC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.79
2018-12-31 -7.56
2018-09-30 -15.43
2018-06-30 3.57
2018-03-31 3.76
2017-12-31 4.25
2017-09-30 6.70
2017-06-30 1.54
2017-03-31 10.21
2016-12-31 18.67
2016-09-30 9.33
2016-06-30 19.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Premier is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Premier's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Premier has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Premier performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Premier's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Premier does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Premier's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Premier's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
Premier's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Premier Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PINC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,680.23 -44.85 414.92 1.25
2018-12-31 1,682.70 -414.19 407.23 1.24
2018-09-30 1,672.24 -826.88 405.75 1.27
2018-06-30 1,661.26 190.88 414.20 1.42
2018-03-31 1,630.40 200.37 427.74 1.88
2017-12-31 1,584.86 223.30 424.82 2.35
2017-09-30 1,531.97 342.38 417.61 2.79
2017-06-30 1,454.67 76.25 395.13 3.11
2017-03-31 1,353.00 491.62 399.15 3.19
2016-12-31 1,271.86 872.17 394.85 3.62
2016-09-30 1,205.03 417.51 392.71 3.28
2016-06-30 1,162.59 818.36 392.63 2.93
2016-03-31 1,127.73 632.64 374.09 2.61
2015-12-31 1,090.78 -42.16 356.18 2.03
2015-09-30 1,048.56 -20.75 340.02 2.32
2015-06-30 1,007.03 -865.29 322.97 2.94
2015-03-31 975.94 -289.83 321.61 3.06
2014-12-31 939.82 594.27 309.97 3.28
2014-09-30 899.28 -3,086.16 299.79 3.61
2014-06-30 910.55 -2,713.26 292.41 3.39
2014-03-31 915.68 -3,205.44 273.79 4.29
2013-12-31 913.78 -3,710.45 263.33 5.25
2013-09-30 911.30 4.64 249.90 6.58
2013-06-30 869.29 7.38 248.30 9.37
2013-03-31 819.11 9.90 242.53 10.56
2012-06-30 768.29 3.94 240.75 12.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Premier has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Premier has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Premier improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Premier's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Premier has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Premier's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Premier's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Premier is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Premier's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Premier's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Premier has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Premier Company Filings, last reported 1 month ago.

NasdaqGS:PINC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -601.71 158.23 137.51
2018-12-31 -890.63 107.41 110.58
2018-09-30 -1,955.82 107.22 142.42
2018-06-30 -1,427.06 107.21 152.39
2018-03-31 -1,135.26 207.22 149.41
2017-12-31 -949.57 207.68 163.01
2017-09-30 -1,288.56 179.30 132.12
2017-06-30 -1,662.25 234.27 156.74
2017-03-31 -1,407.75 383.64 236.22
2016-12-31 -1,346.74 345.50 218.89
2016-09-30 -1,840.78 19.12 156.01
2016-06-30 -1,951.46 19.34 266.58
2016-03-31 -2,067.78 68.97 265.55
2015-12-31 -2,446.51 117.15 199.62
2015-09-30 -2,629.31 167.98 172.27
2015-06-30 -3,118.10 17.94 387.19
2015-03-31 -3,059.09 20.36 348.39
2014-12-31 -2,688.55 34.58 347.39
2014-09-30 -2,836.53 35.10 268.64
2014-06-30 -2,470.31 33.75 291.61
2014-03-31 -2,947.20 37.76 267.66
2013-12-31 -3,484.49 40.19 233.86
2013-09-30 76.92 99.24 132.85
2013-06-30 77.77 34.62 255.62
2013-03-31 79.10 42.50 170.35
2012-06-30 78.44 25.39 241.67
  • Premier has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Premier's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Premier has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Premier has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by % per year.
X
Financial health checks
We assess Premier's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Premier has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Premier dividends. Estimated to be 0% next year.
If you bought $2,000 of Premier shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Premier's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Premier's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PINC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PINC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.00 3.00
2020-06-30 0.00 4.00
2019-06-30 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Premier has not reported any payouts.
  • Unable to verify if Premier's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Premier's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Premier has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Premier's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Premier's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Premier afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Premier has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Susan DeVore
COMPENSATION $6,505,819
AGE 59
TENURE AS CEO 6 years
CEO Bio

Ms. Susan Dodson DeVore has been Chief Executive Officer and Director of Premier, Inc., a leading health care improvement company, since May 2013. She served as President of Premier, Inc. since May 2013 until April 26, 2019. Before that, Ms. DeVore served as President and Chief Executive Officer for Premier's predecessor company, Premier Healthcare Solutions, Inc. since 2009 until 2013. She served as a member of the board of managers of Premier Plans from 2009 to 2013. Ms. DeVore is an industry-leading thinker who has been named multiple times to Modern Healthcare’s 100 Most Influential People and Top 25 Women in Healthcare lists. Ms. DeVore has been an Independent Director of Unum Group. since February 22, 2018. Prior to joining Premier, Ms. DeVore had two decades of finance, strategy and healthcare consulting experience. She has also been recognized as a Distinguished Alumnus, UNC Charlotte (2016), one of the Association to Advance Collegiate Schools of Business’ 100 Influential Leaders (2015), Charlotte Business Woman of the Year (2014), and the recipient of the 2014 Silver Stevie Award for Executive of the Year. She also previously served as the Chief Operating Officer for a number of affiliated Premier entities. Her Significant consulting experience with Ernst & Young LLP, including service as a Partner and Senior Healthcare Industry Management Practice Leader. She served as Chief Operating Officer at Premier Healthcare Solutions, Inc since 2006 until 2009. She serves on the board of trustees of the Healthcare Leadership Council, board member of the Coalition to Protect America’s Healthcare, board member of the Medicare Rights Center, Charlotte Chamber of Commerce, the Institute of Medicine Roundtable on Value and Science Driven Healthcare and member of the UNC Charlotte Board of Trustees. She also serves as a member of the National Academy of Medicine and the Aspen Health Strategy Group. Her Recognition Includes: Modern Healthcare’s 100 Most Influential People in Healthcare in 2004, 2012, 2013, 2014, 2015, 2016 and 2017, Modern Healthcare’s Top 25 Women in Healthcare in 2005, 2013, 2015, 2017, Becker’s Hospital Review 100 Great Healthcare Leaders to Know, 2017, 2016 Project Sunshine Honoree, Distinguished Alumnus, UNC Charlotte 2016, 100 Influential Leaders by the Association to Advance Collegiate Schools of Business in 2015, Queens University of Charlotte’s BusinessWoman of the Year in 2014, Silver Stevie Award for Executive of the Year for Health Products and Services in 2014, Charlotte Business Journal Women in Business Achievement Award winner in 2014., Charlotte Business Journal’s top newsmakers of 2009, 2013, 2014, Charlotte Business Journals Who to Watch in 2012, The Charlotte Observer’s seven to Watch in 2011, Named one of Business Leader magazine’s Business Leaders of the Year in 2010, Honorable mention for Stevie Award for top executive in 2010, Business Leader magazine’s Women Extraordinaire in 2009, One of North Carolina’s most influential and dynamic leaders by Business Leader magazine in 2009, Recognized by US Airways magazine for significant contributions in Charlotte in 2009, Charlotte Business Journal’s Top 25 Women in Business in 2007. Her Qualifications Include Accounting/Auditing, Business Operations, Capital Management, Corporate Governance Leadership, Financial Expertise/Literacy, Industry Experience, International, Other Public Company Board Experience, Public Company Executive Experience, Regulatory/Risk Management and Technology. Ms. DeVore obtained a bachelor’s degree from the University of North Carolina at Charlotte and a Master of Management from McGill University.

CEO Compensation
  • Susan's compensation has increased whilst company is loss making.
  • Susan's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Premier management team in years:

6
Average Tenure
55
Average Age
  • The average tenure for the Premier management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Susan DeVore

TITLE
CEO & Director
COMPENSATION
$7M
AGE
59
TENURE
6 yrs

Mike Alkire

TITLE
President & COO
COMPENSATION
$4M
AGE
55
TENURE
0.1 yrs

Craig McKasson

TITLE
CFO, CAO
COMPENSATION
$3M
AGE
51
TENURE
6 yrs

Leigh Anderson

TITLE
President of Performance Services
COMPENSATION
$1M
AGE
51
TENURE
0.8 yrs

Jim Storey

TITLE
Vice President of Investor Relations

David Klatsky

TITLE
Senior VP & General Counsel
COMPENSATION
$1M
AGE
56
TENURE
2.8 yrs

Blair Childs

TITLE
Senior Vice President of Public Affairs
TENURE
12.8 yrs

Kelli Price

TITLE
Senior Vice President of People
AGE
56
TENURE
6 yrs

Andy Brailo

TITLE
Senior Vice President of Member Field Services
TENURE
7 yrs

David Hargraves

TITLE
Senior Vice President of Supply Chain
AGE
49
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Premier board of directors in years:

5.6
Average Tenure
62.5
Average Age
  • The tenure for the Premier board of directors is about average.
Board of Directors

Richard Statuto

TITLE
Chairman of the Board
COMPENSATION
$291K
AGE
61
TENURE
5.7 yrs

Susan DeVore

TITLE
CEO & Director
COMPENSATION
$7M
AGE
59
TENURE
6 yrs

Terry Shaw

TITLE
Vice Chairman of the Board
COMPENSATION
$205K
AGE
56
TENURE
3.8 yrs

Bill Mayer

TITLE
Independent Director
COMPENSATION
$256K
AGE
78
TENURE
6 yrs

Peter Fine

TITLE
Director
COMPENSATION
$222K
AGE
66
TENURE
5.6 yrs

Ellen Wolf

TITLE
Independent Director
COMPENSATION
$249K
AGE
64
TENURE
5.6 yrs

Philip Incarnati

TITLE
Director
COMPENSATION
$214K
AGE
64
TENURE
5.6 yrs

Stephen D'Arcy

TITLE
Independent Director
COMPENSATION
$236K
AGE
63
TENURE
5.6 yrs

Jody Davids

TITLE
Independent Director
COMPENSATION
$227K
AGE
62
TENURE
4.3 yrs

Eric Bieber

TITLE
Director
COMPENSATION
$212K
AGE
57
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Feb 19 Sell Stephen D'Arcy Individual 08. Feb 19 08. Feb 19 -3,733 $36.90 $-137,748
24. Aug 18 Sell William Mayer Individual 23. Aug 18 23. Aug 18 -3,000 $43.35 $-130,050
X
Management checks
We assess Premier's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Premier has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Should Investors React To Premier, Inc.'s (NASDAQ:PINC) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Susan DeVore's Compensation Compare With Similar Sized Companies. … has a market cap of US$4.3b, and is paying total annual CEO compensation of US$6.5m.

Simply Wall St - –

Did Premier, Inc. (NASDAQ:PINC) Insiders Sell Shares?

In the last twelve months, the biggest single sale by an insider was when Independent Director William Mayer sold US$130k worth of shares at a price of US$43.35 per share. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price … William Mayer was the only individual insider to sell shares in the last twelve months.

Simply Wall St - –

Why Premier, Inc.’s (NASDAQ:PINC) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St - –

How Should Investors Feel About Premier Inc's (NASDAQ:PINC) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Susan DeVore's Compensation Compare With Similar Sized Companies. … Our data indicates that Premier Inc is worth US$5.2b, and total annual CEO compensation is US$6.5m.

Simply Wall St - –

What Do Investors Need To Know About Premier Inc's (NASDAQ:PINC) Earnings Trajectory?

In June 2018, Premier Inc (NASDAQ:PINC) released its most recent earnings announcement, whicha … revealed … business

Simply Wall St - –

What Do You Get For Owning Premier Inc (NASDAQ:PINC)?

and looking to gauge the potential return on investment in Premier Inc (NASDAQ:PINC). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Premier is able to use capital to create earnings will help us understand your potential return.

Simply Wall St - –

Should You Worry About Premier Inc's (NASDAQ:PINC) CEO Salary Level?

Leading Premier Inc (NASDAQ:PINC) as the CEO, Susan DeVore took the company to a valuation of US$4.93b. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … CEOs leading companies of similar size and profitability

Simply Wall St - –

Should You Buy Premier Inc (NASDAQ:PINC)?

Premier Inc (NASDAQ:PINC), a healthcare company based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … My valuation model shows that the intrinsic value for the stock is $41.94, but it is currently trading at US$33.39 on the share market, meaning that there is still an opportunity to buy now. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St - –

Interested In Premier Inc (NASDAQ:PINC)? Here's How It's Performing

I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Premier, its most recent earnings (trailing twelve month) is $342.4M, which, against the prior year's level, has plunged by -18.00%. … This means even though earnings declined from the prior year, over the past couple of years, Premier's earnings have been rising on average.

Simply Wall St - –

Company Info

Description

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; performance improvement collaborative; and consulting and insurance services. This segment’s various PremierConnect domains comprise PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain to deals with supply chain; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates members’ custom data into a hosted and integrated data warehouse and analytics platform. The company was incorporated in 2013 and is headquartered in Charlotte, North Carolina.

Details
Name: Premier, Inc.
PINC
Exchange: NasdaqGS
Founded: 2013
$4,737,791,927
$2,251,112,841
126,374,818
Website: http://www.premierinc.com
Address: Premier, Inc.
13034 Ballantyne Corporate Place,
Charlotte,
North Carolina, 28277,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PINC Class A Common Stock Nasdaq Global Select US USD 26. Sep 2013
DB PM8 Class A Common Stock Deutsche Boerse AG DE EUR 26. Sep 2013
Number of employees
Current staff
Staff numbers
2,200
Premier employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:35
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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