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PINC

Premier NasdaqGS:PINC Stock Report

Last Price

US$37.16

Market Cap

US$4.4b

7D

1.3%

1Y

6.9%

Updated

22 May, 2022

Data

Company Financials +
PINC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

PINC Stock Overview

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

Premier Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Premier
Historical stock prices
Current Share PriceUS$37.16
52 Week HighUS$42.15
52 Week LowUS$32.57
Beta0.28
1 Month Change0.22%
3 Month Change3.37%
1 Year Change6.94%
3 Year Change0.62%
5 Year Change6.72%
Change since IPO21.24%

Recent News & Updates

May 06

Premier: 10 Years Of Consolidation, Now With 2% Yield

Premier offers incredible safety as a healthcare services provider. However, a few issues will perpetuate the flat share price trend that has been ongoing since the IPO in 2013. These include falling revenue growth for 2020, uncertain profit trends, and newly issued debt. While certainly worth consideration for the dividend growth potential, I find there is little else to support investing.

Apr 29
These 4 Measures Indicate That Premier (NASDAQ:PINC) Is Using Debt Reasonably Well

These 4 Measures Indicate That Premier (NASDAQ:PINC) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

PINCUS HealthcareUS Market
7D1.3%0.09%-2.7%
1Y6.9%2.5%-12.9%

Return vs Industry: PINC exceeded the US Healthcare industry which returned 2.5% over the past year.

Return vs Market: PINC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is PINC's price volatile compared to industry and market?
PINC volatility
PINC Average Weekly Movement3.7%
Healthcare Industry Average Movement10.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: PINC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PINC's weekly volatility (4%) 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$4.38b
Earnings (TTM)US$285.51m
Revenue (TTM)US$1.57b

15.4x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PINC income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$692.92m
Gross ProfitUS$880.79m
Other ExpensesUS$595.28m
EarningsUS$285.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.42
Gross Margin55.97%
Net Profit Margin18.14%
Debt/Equity Ratio25.9%

How did PINC perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

34%

Payout Ratio

Does PINC pay a reliable dividends?

See PINC dividend history and benchmarks
When do you need to buy PINC by to receive an upcoming dividend?
Premier dividend dates
Ex Dividend DateMay 31 2022
Dividend Pay DateJun 15 2022
Days until Ex dividend8 days
Days until Dividend pay date23 days

Does PINC pay a reliable dividends?

See PINC dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


24.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PINC ($37.16) is trading below our estimate of fair value ($49.06)

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 (15.4x) compared to the US Healthcare industry average (19x).

PE vs Market: PINC is poor value based on its PE Ratio (15.4x) compared to the US market (15.2x).


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 (2.6x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.0%

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 (-3% per year).

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

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

Revenue vs Market: PINC's revenue (2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: PINC's revenue (2% 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 (14.8%).


Past Performance

How has Premier performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PINC has high quality earnings.

Growing Profit Margin: PINC's current net profit margins (18.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: PINC's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: PINC's earnings growth over the past year (50.9%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: PINC earnings growth over the past year (50.9%) exceeded the Healthcare industry 9.6%.


Return on Equity

High ROE: PINC's Return on Equity (12.9%) is considered low.


Financial Health

How is Premier's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PINC's short term assets ($756.0M) do not cover its short term liabilities ($863.2M).

Long Term Liabilities: PINC's short term assets ($756.0M) exceed its long term liabilities ($418.7M).


Debt to Equity History and Analysis

Debt Level: PINC's net debt to equity ratio (17.9%) 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 (95%).

Interest Coverage: PINC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.15%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 23 2022Ex Dividend DateMay 31 2022Dividend Pay DateJun 15 202215 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PINC's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: PINC's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (4.11%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PINC has been paying a dividend for less than 10 years.

Growing Dividend: PINC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.6%), PINC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (20.2%), PINC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Mike Alkire (58 yo)

3.08yrs

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 ($USD5.72M) is about average for companies of similar size in the US market ($USD6.86M).

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 (3.8 years average tenure).


Board Members

Experienced Board: PINC's board of directors are considered experienced (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.


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$4.384b
  • Shares outstanding: 117.99m
  • 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 Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
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.