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PINC

PremierNasdaqGS:PINC Stock Report

Last Price

US$38.15

Market Cap

US$4.6b

7D

-3.6%

1Y

9.1%

Updated

22 Jan, 2022

Data

Company Financials +
PINC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends3/6

PINC Stock Overview

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States.

Premier Competitors

Quest Diagnostics

NYSE:DGX

US$16.9b

Oracle

NYSE:ORCL

US$219.6b

International Business Machines

NYSE:IBM

US$116.0b

Roper Technologies

NYSE:ROP

US$46.2b

Price History & Performance

Summary of all time highs, changes and price drops for Premier
Historical stock prices
Current Share PriceUS$38.15
52 Week HighUS$42.15
52 Week LowUS$32.44
Beta0.26
1 Month Change-5.50%
3 Month Change-4.39%
1 Year Change9.09%
3 Year Change-4.79%
5 Year Change22.20%
Change since IPO24.47%

Recent News & Updates

Nov 17
Is Premier (NASDAQ:PINC) Using Too Much Debt?

Is Premier (NASDAQ:PINC) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 25
Premier's (NASDAQ:PINC) Dividend Will Be Increased To US$0.20

Premier's (NASDAQ:PINC) Dividend Will Be Increased To US$0.20

Premier, Inc. ( NASDAQ:PINC ) has announced that it will be increasing its dividend on the 15th of December to US$0.20...

Shareholder Returns

PINCUS HealthcareUS Market
7D-3.6%-3.5%-6.1%
1Y9.1%12.7%4.2%

Return vs Industry: PINC underperformed the US Healthcare industry which returned 12.7% over the past year.

Return vs Market: PINC exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is PINC's price volatile compared to industry and market?
PINC volatility
PINC Average Weekly Movement3.1%
Healthcare Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: PINC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PINC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20132,600Mike Alkirehttps://www.premierinc.com

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an 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.

Premier Fundamentals Summary

How do Premier's earnings and revenue compare to its market cap?
PINC fundamental statistics
Market CapUS$4.65b
Earnings (TTM)US$263.84m
Revenue (TTM)US$1.74b

17.6x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PINC income statement (TTM)
RevenueUS$1.74b
Cost of RevenueUS$884.81m
Gross ProfitUS$854.60m
ExpensesUS$590.76m
EarningsUS$263.84m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)2.17
Gross Margin49.13%
Net Profit Margin15.17%
Debt/Equity Ratio23.7%

How did PINC perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Premier undervalued compared to its fair value and its price relative to the market?

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PINC ($38.15) is trading below our estimate of fair value ($54.84)

Significantly Below Fair Value: PINC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PINC is good value based on its PE Ratio (17.6x) compared to the US Healthcare industry average (19.9x).

PE vs Market: PINC is poor value based on its PE Ratio (17.6x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: PINC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PINC is good value based on its PB Ratio (2x) compared to the US Healthcare industry average (2.5x).


Future Growth

How is Premier forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PINC's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: PINC's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: PINC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PINC's revenue (1.8% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: PINC's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PINC's Return on Equity is forecast to be low in 3 years time (16%).


Past Performance

How has Premier performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PINC has high quality earnings.

Growing Profit Margin: PINC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PINC's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: PINC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PINC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (32.5%).


Return on Equity

High ROE: PINC's Return on Equity (11.5%) is considered low.


Financial Health

How is Premier's financial position?


Financial Position Analysis

Short Term Liabilities: PINC's short term assets ($832.7M) exceed its short term liabilities ($757.0M).

Long Term Liabilities: PINC's short term assets ($832.7M) exceed its long term liabilities ($481.8M).


Debt to Equity History and Analysis

Debt Level: PINC's net debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: PINC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: PINC's debt is well covered by operating cash flow (78.2%).

Interest Coverage: PINC's interest payments on its debt are well covered by EBIT (434.8x coverage).


Balance Sheet


Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PINC's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: PINC's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.61%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PINC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PINC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.7%), PINC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PINC's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Mike Alkire (58 yo)

2.75yrs

Tenure

US$5,723,086

Compensation

Mr. Michael J. Alkire, also known as Mike, has been the President of Premier, Inc. since April 26, 2019 and serves as its Chief Executive Officer and Director since May 01, 2021. He served as Chief Operati...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD5.72M) is about average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PINC's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: PINC's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Premier, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Premier, Inc.
  • Ticker: PINC
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$4.649b
  • Shares outstanding: 121.86m
  • Website: https://www.premierinc.com

Number of Employees


Location

  • Premier, Inc.
  • 13034 Ballantyne Corporate Place
  • Charlotte
  • North Carolina
  • 28277
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:27
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.