NasdaqGS:PINC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with acceptable track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.6%

PINC

13.3%

US Healthcare

9.9%

US Market


1 Year Return

-11.6%

PINC

-3.5%

US Healthcare

-11.9%

US Market

Return vs Industry: PINC underperformed the US Healthcare industry which returned -3.5% over the past year.

Return vs Market: PINC matched the US Market which returned -11.9% over the past year.


Shareholder returns

PINCIndustryMarket
7 Day5.6%13.3%9.9%
30 Day3.6%-8.8%-15.0%
90 Day-19.0%-18.5%-21.5%
1 Year-11.6%-11.6%-2.2%-3.5%-10.0%-11.9%
3 Year-4.2%-4.2%18.2%13.0%12.3%5.1%
5 Year-17.7%-17.7%22.7%14.4%32.5%18.1%

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

Below Fair Value: PINC ($30.48) is trading below our estimate of fair value ($101.79)

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 (6.8x) compared to the Healthcare industry average (19.4x).

PE vs Market: PINC is good value based on its PE Ratio (6.8x) compared to the US market (13x).


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 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 18 analysts?

-11.1%

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 (-11.1% per year).

Earnings vs Market: PINC's earnings are forecast to decline over the next 3 years (-11.1% 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 (7.3% 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 (23.2%)


Next Steps

Past Performance

How has Premier performed over the past 5 years?

6.1%

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 6.1% 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 (14.1%).


Return on Equity

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


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.


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.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PINC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PINC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Premier's 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 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.


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?

6.8yrs

Average management tenure


CEO

Susan DeVore (60yo)

6.83s

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 ($USD7.68M) is above average for companies of similar size in the US market ($USD5.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Susan DeVore
CEO & Director6.83yrsUS$7.68m0.59% $21.9m
Michael Alkire
President0.92yrUS$4.47m0.30% $11.2m
Craig McKasson
Chief Administrative Officer6.83yrsUS$3.18m0.16% $6.0m
David Klatsky
General Counsel3.67yrsUS$1.61m0.018% $660.0k
Leigh Anderson
President of Performance Services1.67yrsUS$2.22m0.034% $1.3m
James Storey
Vice President of Investor Relationsno datano datano data
Blair Childs
Senior Vice President of Public Affairs13.67yrsno datano data
Kelli Price
Senior Vice President of People6.83yrsno data0.033% $1.2m
Andy Brailo
Chief Customer Officer7.83yrsno datano data
David Hargraves
Senior Vice President of Supply Chain2.67yrsno data0.028% $1.0m

6.8yrs

Average Tenure

56yo

Average Age

Experienced Management: PINC's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Susan DeVore
CEO & Director6.83yrsUS$7.68m0.59% $21.9m
Ellen Wolf
Independent Director6.42yrsUS$257.51k0.024% $897.9k
William Mayer
Lead Independent Director0.42yrUS$259.01k0.015% $553.1k
Richard Statuto
Independent Director6.83yrsUS$289.26k0.011% $402.0k
Philip Incarnati
Director6.42yrsUS$213.51k0.011% $402.0k
Peter Fine
Director6.42yrsUS$221.01k0.011% $402.0k
Stephen D'Arcy
Independent Director6.42yrsUS$238.51k0.021% $768.4k
Jody Davids
Independent Director5.17yrsUS$227.01k0.020% $725.3k
Terry Shaw
Chairman of the Board0.58yrUS$202.00kno data
Eric Bieber
Director4.75yrsUS$216.51k0.011% $402.0k

6.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PINC's board of directors are considered experienced (6.4 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 been diluted in the past year, with total shares outstanding growing by 14.6%.


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$3.712b
  • Market Cap: US$2.166b
  • Shares outstanding: 121.78m
  • 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 Supply Chain Services segment offers its members with 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 services. It is also involved in the provision of the ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services; SURPASS Collaborative service; STOCKD, an e-commerce platform; and PROVIDEGX program, which identifies supply sources for drugs that are on or may be at risk of being added to the national drug shortage list, or that are vulnerable to pricing volatility, as well as direct sourcing business. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, enable them manage a value-based care reimbursement model, and support their regulatory reporting framework; performance improvement collaborative; and consulting and insurance services. This segment’s various PremierConnect domains include PremierConnect Quality & Regulatory, PremierConnect Clinical Surveillance & Safety, PremierConnect Supply Chain & ERP, PremierConnect Operations, PremierConnect Enterprise Analytics, and PREMIERCONNECT Clinical Decision Support domains. Premier, Inc. has a collaboration with GE Healthcare to develop a same-day breast cancer diagnosis and treatment model. The company was incorporated in 2013 and is headquartered in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 04:26
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.