NasdaqGS:PINC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Outstanding track record and good value.


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

-4.4%

PINC

-0.3%

US Healthcare

-1.4%

US Market


1 Year Return

-0.4%

PINC

20.0%

US Healthcare

17.8%

US Market

Return vs Industry: PINC underperformed the US Healthcare industry which returned 18.1% over the past year.

Return vs Market: PINC underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

PINCIndustryMarket
7 Day-4.4%-0.3%-1.4%
30 Day8.0%9.4%4.7%
90 Day-4.1%3.8%8.2%
1 Year0.2%-0.4%21.6%20.0%20.5%17.8%
3 Year2.7%2.1%32.3%26.6%42.2%32.7%
5 Year-1.2%-1.8%59.4%47.7%83.4%62.7%

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?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PINC ($33.3) is trading below our estimate of fair value ($62.47)

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 (3.7x) compared to the US Healthcare industry average (23.3x).

PE vs Market: PINC is good value based on its PE Ratio (3.7x) compared to the US market (19x).


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 (17.1x) 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?

-18.4%

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 (-18.4% per year).

Earnings vs Market: PINC's earnings are forecast to decline over the next 3 years (-18.4% per year).

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

Revenue vs Market: PINC's revenue (2.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PINC's revenue (2.1% 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 (14.3%).


Next Steps

Past Performance

How has Premier performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PINC has high quality earnings.

Growing Profit Margin: PINC's current net profit margins (46%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: PINC has become profitable over the past 5 years, growing earnings by 11.9% per year.

Accelerating Growth: PINC's earnings growth over the past year (1831.3%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: PINC earnings growth over the past year (1831.3%) exceeded the Healthcare industry 28%.


Return on Equity

High ROE: PINC's Return on Equity (209%) is considered outstanding.


Next Steps

Financial Health

How is Premier's financial position?


Financial Position Analysis

Short Term Liabilities: PINC's short term assets ($618.4M) exceed its short term liabilities ($496.1M).

Long Term Liabilities: PINC's short term assets ($618.4M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: PINC's debt to equity ratio (60.5%) 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 (415.1%).

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?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PINC's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: PINC's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PINC's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Susan DeVore (61 yo)

7.42yrs

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 ($USD7.68M) is above average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Susan DeVore
CEO & Director7.42yrsUS$7.68m0.48%
$ 19.8m
Michael Alkire
President1.5yrsUS$4.47m0.26%
$ 10.6m
Craig McKasson
Chief Administrative Officer7.42yrsUS$3.18m0.12%
$ 4.8m
David Klatsky
General Counsel4.25yrsUS$1.61m0.030%
$ 1.2m
Leigh Anderson
President of Performance Services2.25yrsUS$2.22m0.036%
$ 1.5m
Angeline McCabe
Vice President of Investor Relationsno datano datano data
Blair Childs
Senior Vice President of Public Affairs14.25yrsno datano data
Kelli Price
Senior Vice President of People7.42yrsno data0.025%
$ 1.0m
Andy Brailo
Chief Customer Officer8.42yrsno datano data
David Hargraves
Senior Vice President of Supply Chain3.25yrsno data0.024%
$ 972.7k
John Sganga
Senior Vice President of Alternate Site Programs2.83yrsno datano data
Laurie Graham
Chief of Staff1.75yrsno datano data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: PINC's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Susan DeVore
CEO & Director7.42yrsUS$7.68m0.48%
$ 19.8m
Ellen Wolf
Independent Director7yrsUS$257.51k0.014%
$ 577.7k
William Mayer
Lead Independent Director1yrUS$259.01k0.0054%
$ 221.3k
Richard Statuto
Independent Director7.42yrsUS$289.26k0.0063%
$ 258.9k
Peter Fine
Director7yrsUS$221.01k0.0063%
$ 258.9k
Stephen D'Arcy
Independent Director7yrsUS$238.51k0.012%
$ 494.5k
Jody Davids
Independent Director5.75yrsUS$227.01k0.011%
$ 466.7k
Marc Miller
Director5.17yrsUS$215.01k0.0063%
$ 258.9k
Terry Shaw
Chairman of the Board1.17yrsUS$202.00kno data
Scott Reiner
Director4.83yrsUS$212.01k0.0063%
$ 258.9k
Barclay Berdan
Director4.83yrsUS$188.50kno data
Marvin O'Quinn
Director5.17yrsUS$210.51k0.0063%
$ 258.9k

5.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PINC's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PINC insiders have only sold shares 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$4.097b
  • Market Cap: US$4.065b
  • Shares outstanding: 121.87m
  • 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 Analysis2020/10/22 00:50
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.