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

3.2%

NasdaqGS:PINC

-1.2%

US Healthcare

-0.02%

US Market


1 Year Return

-15.9%

NasdaqGS:PINC

-9.4%

US Healthcare

1.6%

US Market

PINC underperformed the Healthcare industry which returned -8.4% over the past year.

PINC underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

PINCIndustryMarket
7 Day3.2%-1.2%-0.02%
30 Day-4.0%-2.2%2.7%
90 Day-7.4%-1.5%1.4%
1 Year-15.9%-15.9%-8.0%-9.4%3.8%1.6%
3 Year12.3%12.3%28.7%23.5%45.2%35.8%
5 Year12.6%12.6%62.7%53.0%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Premier's share price is below the future cash flow value, and at a moderate discount (> 20%).

Premier's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Premier is overvalued based on earnings compared to the US Healthcare industry average.

Premier is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Premier is poor value based on expected growth next year.


Price Based on Value of Assets

Premier has negative assets, we can't compare the value of its assets to the US Healthcare industry average.


Next Steps

Future Growth

How is Premier expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Premier's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Premier's earnings are expected to grow significantly at over 20% yearly.

Premier's revenue growth is positive but not above the United States of America market average.

Premier's earnings growth is expected to exceed the United States of America market average.

Premier's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Premier is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Premier has delivered over 20% year on year earnings growth in the past 5 years.

Premier's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Premier's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

It is difficult to establish if Premier has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Premier used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Premier's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Premier's financial position?


Financial Position Analysis

Premier is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Premier's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Premier has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Premier's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (1503.5%, greater than 20% of total debt).

Unable to confirm if the interest payments on Premier's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Premier 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 and Payments Analysis

Unable to evaluate Premier's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Premier's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Premier has not reported any payouts.

Unable to verify if Premier's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Premier has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Premier's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Susan DeVore (60yo)

6.3yrs

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

Susan's remuneration is about average for companies of similar size in United States of America.

Susan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Premier management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.9yrs

Average Tenure

63.5yo

Average Age

The tenure for the Premier board of directors is about average.


Insider Trading

Premier individual 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: 1.2yrs
    • Compensation: US$1.46m
  • Jim Storey

    Vice President of Investor Relations

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

    President & COO

    • Tenure: 0.4yrs
    • Compensation: US$4.13m
  • Susan DeVore (60yo)

    CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$6.51m
  • Blair Childs

    Senior Vice President of Public Affairs

    • Tenure: 13.2yrs
  • Craig McKasson (52yo)

    CFO, CAO

    • Tenure: 6.3yrs
    • Compensation: US$2.76m
  • Kelli Price (57yo)

    Senior Vice President of People

    • Tenure: 6.3yrs
  • Andy Brailo

    Senior Vice President of Member Field Services

    • Tenure: 7.3yrs
  • David Klatsky (57yo)

    Senior VP & General Counsel

    • Tenure: 3.2yrs
    • Compensation: US$1.28m
  • David Hargraves (50yo)

    Senior Vice President of Supply Chain

    • Tenure: 2.2yrs

Board Members

  • Ellen Wolf (65yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$249.02k
  • Bill Mayer (79yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$255.52k
  • Richard Statuto (62yo)

    Chairman of the Board

    • Tenure: 6yrs
    • Compensation: US$290.52k
  • Philip Incarnati (65yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$213.52k
  • Peter Fine (67yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$222.02k
  • Stephen D'Arcy (64yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$235.52k
  • Jody Davids (63yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$226.52k
  • Terry Shaw (57yo)

    Vice Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: US$205.00k
  • Susan DeVore (60yo)

    CEO & Director

    • Tenure: 6.3yrs
    • 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$4.538b
  • Market Cap: US$2.284b
  • 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 Analysis2019/09/19 00:43
End of Day Share Price2019/09/18 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.