| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
PINC Stock Overview
Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States.
Premier Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$38.15 |
| 52 Week High | US$42.15 |
| 52 Week Low | US$32.44 |
| Beta | 0.26 |
| 1 Month Change | -5.50% |
| 3 Month Change | -4.39% |
| 1 Year Change | 9.09% |
| 3 Year Change | -4.79% |
| 5 Year Change | 22.20% |
| Change since IPO | 24.47% |
Recent News & Updates
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...
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
| PINC | US Healthcare | US Market | |
|---|---|---|---|
| 7D | -3.6% | -3.5% | -6.1% |
| 1Y | 9.1% | 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
| PINC volatility | |
|---|---|
| PINC Average Weekly Movement | 3.1% |
| Healthcare Industry Average Movement | 8.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | 2,600 | Mike Alkire | https://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
| PINC fundamental statistics | |
|---|---|
| Market Cap | US$4.65b |
| Earnings (TTM) | US$263.84m |
| Revenue (TTM) | US$1.74b |
17.6x
P/E Ratio2.7x
P/S RatioIs PINC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PINC income statement (TTM) | |
|---|---|
| Revenue | US$1.74b |
| Cost of Revenue | US$884.81m |
| Gross Profit | US$854.60m |
| Expenses | US$590.76m |
| Earnings | US$263.84m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 01, 2022
| Earnings per share (EPS) | 2.17 |
| Gross Margin | 49.13% |
| Net Profit Margin | 15.17% |
| Debt/Equity Ratio | 23.7% |
How did PINC perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield36%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:27 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/06/30 |
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.