Market Cap
US$4.3b
Last Updated
2020/08/04 00:45 UTC
Data Sources
Company Financials +
Executive Summary
Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 10.5% per year for the next 3 years
Snowflake Analysis
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has Premier's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PINC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.2%
PINC
1.1%
US Healthcare
2.5%
US Market
1 Year Return
-10.3%
PINC
16.8%
US Healthcare
15.9%
US Market
Return vs Industry: PINC underperformed the US Healthcare industry which returned 14.8% over the past year.
Return vs Market: PINC underperformed the US Market which returned 14.9% over the past year.
Shareholder returns
| PINC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 1.1% | 2.5% |
| 30 Day | 4.4% | 1.9% | 5.8% |
| 90 Day | 15.1% | 6.6% | 18.2% |
| 1 Year | -10.3%-10.3% | 18.3%16.8% | 18.4%15.9% |
| 3 Year | 3.2%3.2% | 32.2%26.4% | 39.9%30.9% |
| 5 Year | -3.2%-3.2% | 44.5%34.3% | 72.9%54.2% |
Price Volatility Vs. Market
How volatile is Premier's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Reflecting on Premier's (NASDAQ:PINC) Share Price Returns Over The Last Year1 month ago | Simply Wall St
Premier (NASDAQ:PINC) Has A Pretty Healthy Balance Sheet2 months ago | Simply Wall St
What Can We Make Of Premier, Inc.’s (NASDAQ:PINC) High Return On Capital?Valuation
Is Premier undervalued compared to its fair value and its price relative to the market?
41.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PINC ($34.83) is trading below our estimate of fair value ($59.26)
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 (6.3x) compared to the US Healthcare industry average (27.7x).
PE vs Market: PINC is good value based on its PE Ratio (6.3x) compared to the US market (17.8x).
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 overvalued based on its PB Ratio (17.5x) compared to the US Healthcare industry average (3x).
Next Steps
Future Growth
How is Premier forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
-10.5%
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 (-10.5% per year).
Earnings vs Market: PINC's earnings are forecast to decline over the next 3 years (-10.5% per year).
High Growth Earnings: PINC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PINC's revenue (3.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: PINC's revenue (3.9% 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 high in 3 years time (29.4%)
Next Steps
Past Performance
How has Premier performed over the past 5 years?
13.7%
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 has become profitable over the past 5 years, growing earnings by 13.7% per year.
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 (16.6%).
Return on Equity
High ROE: Whilst PINC's Return on Equity (216.28%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Premier's financial position?
Financial Position Analysis
Short Term Liabilities: PINC's short term assets ($752.4M) exceed its short term liabilities ($686.2M).
Long Term Liabilities: PINC's short term assets ($752.4M) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: PINC's debt to equity ratio (183.5%) is considered high.
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 (152%).
Interest Coverage: PINC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Premier current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PINC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PINC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PINC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PINC'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 PINC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Susan DeVore (61 yo)
7.25yrs
Tenure
US$7,680,984
Compensation
Ms. Susan Dodson DeVore has been Chief Executive Officer and Director of Premier, Inc., a leading health care improvement company, since May 2013. She served as President of Premier, Inc. since May 2013 un ...
CEO Compensation Analysis
Compensation vs Market: Susan's total compensation ($USD7.68M) is above average for companies of similar size in the US market ($USD5.78M).
Compensation vs Earnings: Susan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7.25yrs | US$7.68m | 0.58% $ 24.9m | |
| President | 1.33yrs | US$4.47m | 0.30% $ 12.8m | |
| Chief Administrative Officer | 7.25yrs | US$3.18m | 0.16% $ 6.8m | |
| General Counsel | 4.08yrs | US$1.61m | 0.018% $ 752.1k | |
| President of Performance Services | 2.08yrs | US$2.22m | 0.034% $ 1.4m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Public Affairs | 14.08yrs | no data | no data | |
| Senior Vice President of People | 7.25yrs | no data | 0.032% $ 1.4m | |
| Chief Customer Officer | 8.25yrs | no data | no data | |
| Senior Vice President of Supply Chain | 3.08yrs | no data | 0.028% $ 1.2m | |
| Senior Vice President of Alternate Site Programs | 2.67yrs | no data | no data | |
| Chief of Staff | 1.58yrs | no data | no data |
4.1yrs
Average Tenure
57yo
Average Age
Experienced Management: PINC's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7.25yrs | US$7.68m | 0.58% $ 24.9m | |
| Independent Director | 6.83yrs | US$257.51k | 0.024% $ 1.0m | |
| Lead Independent Director | 0.83yr | US$259.01k | 0.015% $ 629.9k | |
| Independent Director | 7.25yrs | US$289.26k | 0.011% $ 458.3k | |
| Director | 6.83yrs | US$213.51k | 0.011% $ 458.3k | |
| Director | 6.83yrs | US$221.01k | 0.011% $ 458.3k | |
| Independent Director | 6.83yrs | US$238.51k | 0.021% $ 875.6k | |
| Independent Director | 5.58yrs | US$227.01k | 0.019% $ 826.2k | |
| Chairman of the Board | 1yr | US$202.00k | no data | |
| Director | 5.17yrs | US$213.01k | 0.011% $ 458.3k | |
| Director | 5yrs | US$210.51k | 0.011% $ 458.3k | |
| Director | 5.17yrs | US$216.51k | 0.011% $ 458.3k |
6.2yrs
Average Tenure
64.5yo
Average Age
Experienced Board: PINC's board of directors are considered experienced (6.2 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 company bio, 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$4.259b
- Market Cap: US$2.503b
- Shares outstanding: 121.79m
- Website: https://www.premierinc.com
Number of Employees
Location
- Premier, Inc.
- 13034 Ballantyne Corporate Place
- Charlotte
- North Carolina
- 28277
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PINC | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Sep 2013 |
| PM8 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Sep 2013 |
Biography
Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates through two segments, Supply Chain Services and Performance Services. The Suppl ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/04 00:45 |
| End of Day Share Price | 2020/08/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
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.