NasdaqGS:PINC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

9.3%

PINC

5.8%

US Healthcare

0.4%

US Market


1 Year Return

-26.3%

PINC

-5.7%

US Healthcare

6.9%

US Market

Return vs Industry: PINC underperformed the US Healthcare industry which returned -5.7% over the past year.

Return vs Market: PINC underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

PINCIndustryMarket
7 Day9.3%5.8%0.4%
30 Day-9.1%2.5%-1.1%
90 Day-15.3%-1.4%-0.5%
1 Year-26.3%-26.3%-4.2%-5.7%9.3%6.9%
3 Year2.3%2.3%34.3%29.0%45.8%36.4%
5 Year3.2%3.2%65.1%55.2%62.9%45.1%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PINC ($33.03) is trading below our estimate of fair value ($89.16)

Significantly Undervalued: PINC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PINC is poor value based on its PE Ratio (124.5x) compared to the Healthcare industry average (20.3x).

PE vs Market: PINC is poor value based on its PE Ratio (124.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PINC is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: PINC has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

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

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PINC's forecast earnings growth (20.2% per year) is above the savings rate (2.7%).

Earnings vs Market: PINC's earnings (20.2% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PINC's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% 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

High Future ROE: PINC's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has Premier performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PINC has become profitable over the past 5 years, growing earnings by 40.6% per year.

Accelerating Growth: PINC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PINC had negative earnings growth (-91.8%) over the past year, making it difficult to compare to the Healthcare industry average (5.3%).


Return on Equity

High ROE: PINC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: PINC's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: PINC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Premier's financial position?


Financial Position Analysis

Short Term Liabilities: PINC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PINC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PINC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PINC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PINC's debt is well covered by operating cash flow (1503.5%).

Interest Coverage: Insufficient data to determine if PINC's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: PINC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate PINC'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 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

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

6.4yrs

Average management tenure


CEO

Susan DeVore (60yo)

6.4yrs

Tenure

US$6,505,819

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 ($USD6.51M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

6.4yrs

Average Tenure

56yo

Average Age

Experienced Management: PINC's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PINC's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: PINC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$149,80023 Aug 19
William Mayer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$37.45
SellUS$137,74811 Feb 19
Stephen D'Arcy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,733
Max PriceUS$36.90

Ownership Breakdown


Management Team

  • Leigh Anderson (52yo)

    President of Performance Services

    • Tenure: 1.3yrs
    • Compensation: US$1.46m
  • Jim Storey

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Mike Alkire (56yo)

    President & COO

    • Tenure: 0.5yrs
    • Compensation: US$4.13m
  • Susan DeVore (60yo)

    CEO & Director

    • Tenure: 6.4yrs
    • Compensation: US$6.51m
  • Blair Childs

    Senior Vice President of Public Affairs

    • Tenure: 13.3yrs
  • Craig McKasson (52yo)

    CFO, CAO

    • Tenure: 6.4yrs
    • Compensation: US$2.76m
  • Kelli Price (57yo)

    Senior Vice President of People

    • Tenure: 6.4yrs
  • Andy Brailo

    Senior Vice President of Member Field Services

    • Tenure: 7.4yrs
  • David Klatsky (57yo)

    Senior VP & General Counsel

    • Tenure: 3.3yrs
    • Compensation: US$1.28m
  • David Hargraves (50yo)

    Senior Vice President of Supply Chain

    • Tenure: 2.3yrs

Board Members

  • Ellen Wolf (65yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$249.02k
  • Bill Mayer (79yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$255.52k
  • Richard Statuto (62yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$290.52k
  • Philip Incarnati (65yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$213.52k
  • Peter Fine (67yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$222.02k
  • Stephen D'Arcy (64yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$235.52k
  • Jody Davids (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$226.52k
  • Terry Shaw (57yo)

    Vice Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$205.00k
  • Susan DeVore (60yo)

    CEO & Director

    • Tenure: 6.4yrs
    • Compensation: US$6.51m
  • Eric Bieber (58yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$211.52k

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$4.073b
  • Market Cap: US$2.090b
  • Shares outstanding: 126.05m
  • Website: https://www.premierinc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PINCNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 2013
PM8DB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.