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ICLR

ICON NasdaqGS:ICLR Stock Report

Last Price

US$197.22

Market Cap

US$16.1b

7D

5.3%

1Y

-25.3%

Updated

05 Oct, 2022

Data

Company Financials +
ICLR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends0/6

ICLR Stock Overview

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally.

ICON Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ICON
Historical stock prices
Current Share PriceUS$197.22
52 Week HighUS$313.00
52 Week LowUS$179.95
Beta0.99
1 Month Change-4.61%
3 Month Change-11.53%
1 Year Change-25.32%
3 Year Change34.20%
5 Year Change70.21%
Change since IPO3,001.19%

Recent News & Updates

Sep 15
Is ICON Public Limited Company (NASDAQ:ICLR) Potentially Undervalued?

Is ICON Public Limited Company (NASDAQ:ICLR) Potentially Undervalued?

Today we're going to take a look at the well-established ICON Public Limited Company ( NASDAQ:ICLR ). The company's...

Aug 26
ICON (NASDAQ:ICLR) Seems To Use Debt Quite Sensibly

ICON (NASDAQ:ICLR) Seems To Use Debt Quite Sensibly

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

Aug 11

Baron Funds - ICON Plc: Positioned For An Extended Period Of Revenue And Earnings Growth

We established a position in ICON Plc, the second largest participant in the $50 billion Contract Management Organization (CMO) market. We believe that there remains a long runway for further drug development services to be outsourced to the CMO industry. ICLR is yet to fully capitalize on the potential revenue and cost synergies stemming from its 2020 merger with PRA Health Sciences, Inc. The following segment was excerpted from this fund letter. ICON Plc (ICLR) We established a position in ICON Plc, the second largest participant in the $50 billion Contract Management Organization (CMO) market. Founded in 1990, ICON provides outsourced drug and device development and commercialization services to pharmaceutical, biotechnology, and medical device companies, as well as to governments and public health organizations. We believe the CMO industry and ICON, in particular, is poised to benefit from a variety of positive secular growth trends, and we believe that ICON should remain relatively unimpacted by potential disruption in the broader economy. As clinical drug trials become increasingly complex and global in their scope, market share among CMOs has been shifting to large-scale providers like ICON. The company offers several important advantages to drug developers, particularly smaller and mid-sized biotechnology firms that lack the internal infrastructure to run the trials necessary to obtain regulatory approval for their drugs. These include the economic efficiency associated with converting previously fixed costs to variable costs, and a significant reduction in the time required to bring new drug treatments to market. ICON’s large scale has also enabled the company to secure long-term strategic partnerships with multiple large pharmaceutical customers, which provides added visibility into their revenue pipeline. Lastly, we believe that there remains a long runway for further drug development services to be outsourced to the CMO industry. ICON has expertise running trials in multiple therapeutic areas, including oncology, orphan and rare diseases, central nervous system, dermatology, infectious disease, women’s health, and immunology. The company offers its clients differentiated technology, including proprietary data gathering and analytics solutions that target inefficiencies in the clinical trial process. In particular, the company’s unique network site strategy addresses two of the largest challenges in overseeing drug trials–the time needed to recruit patients and the generation of the clean data needed for submission to regulators. We believe ICON is positioned to deliver high single-digit revenue and mid-teens earnings growth for an extended period. We believe ICON is perhaps the best managed company within its industry, with a long history of developing new products and services that are embraced by customers, coupled with excellent cost management. Furthermore, we believe ICON has yet to fully capitalize on the potential revenue and cost synergies stemming from its 2020 merger with PRA Health Sciences, Inc., then the fifth largest player in the industry.

Aug 01
Are Investors Undervaluing ICON Public Limited Company (NASDAQ:ICLR) By 41%?

Are Investors Undervaluing ICON Public Limited Company (NASDAQ:ICLR) By 41%?

Does the August share price for ICON Public Limited Company ( NASDAQ:ICLR ) reflect what it's really worth? Today, we...

Shareholder Returns

ICLRUS Life SciencesUS Market
7D5.3%7.1%4.4%
1Y-25.3%-26.5%-18.2%

Return vs Industry: ICLR exceeded the US Life Sciences industry which returned -26.5% over the past year.

Return vs Market: ICLR underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is ICLR's price volatile compared to industry and market?
ICLR volatility
ICLR Average Weekly Movement5.8%
Life Sciences Industry Average Movement9.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: ICLR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ICLR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199040,500Steve Cutlerhttps://www.iconplc.com

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services.

ICON Fundamentals Summary

How do ICON's earnings and revenue compare to its market cap?
ICLR fundamental statistics
Market CapUS$16.08b
Earnings (TTM)US$209.90m
Revenue (TTM)US$7.59b

76.6x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ICLR income statement (TTM)
RevenueUS$7.59b
Cost of RevenueUS$5.48b
Gross ProfitUS$2.11b
Other ExpensesUS$1.90b
EarningsUS$209.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 02, 2022

Earnings per share (EPS)2.57
Gross Margin27.74%
Net Profit Margin2.77%
Debt/Equity Ratio61.9%

How did ICLR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ICLR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ICLR?

Other financial metrics that can be useful for relative valuation.

ICLR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA16.8x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does ICLR's PE Ratio compare to its peers?

ICLR PE Ratio vs Peers
The above table shows the PE ratio for ICLR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.6x
PKI PerkinElmer
24.6x3.9%US$16.6b
RGEN Repligen
76.8x18.4%US$12.2b
WST West Pharmaceutical Services
28x9.0%US$19.2b
WAT Waters
24.8x6.4%US$17.4b
ICLR ICON
76.6x29.4%US$16.1b

Price-To-Earnings vs Peers: ICLR is expensive based on its Price-To-Earnings Ratio (76.6x) compared to the peer average (38.6x).


Price to Earnings Ratio vs Industry

How does ICLR's PE Ratio compare vs other companies in the US Life Sciences Industry?

Price-To-Earnings vs Industry: ICLR is expensive based on its Price-To-Earnings Ratio (76.6x) compared to the US Life Sciences industry average (24.5x)


Price to Earnings Ratio vs Fair Ratio

What is ICLR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ICLR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio76.6x
Fair PE Ratio31.8x

Price-To-Earnings vs Fair Ratio: ICLR is expensive based on its Price-To-Earnings Ratio (76.6x) compared to the estimated Fair Price-To-Earnings Ratio (31.8x).


Share Price vs Fair Value

What is the Fair Price of ICLR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ICLR ($197.22) is trading below our estimate of fair value ($328.24)

Significantly Below Fair Value: ICLR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is ICON forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICLR's forecast earnings growth (29.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ICLR's earnings (29.4% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: ICLR's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ICLR's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICLR's Return on Equity is forecast to be low in 3 years time (14.4%).


Discover growth companies

Past Performance

How has ICON performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ICLR has a large one-off loss of $170.7M impacting its June 30 2022 financial results.

Growing Profit Margin: ICLR's current net profit margins (2.8%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: ICLR's earnings have declined by 5.2% per year over the past 5 years.

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

Earnings vs Industry: ICLR had negative earnings growth (-42.3%) over the past year, making it difficult to compare to the Life Sciences industry average (15.6%).


Return on Equity

High ROE: ICLR's Return on Equity (2.6%) is considered low.


Discover strong past performing companies

Financial Health

How is ICON's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ICLR's short term assets ($2.9B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: ICLR's short term assets ($2.9B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: ICLR's net debt to equity ratio (54.4%) is considered high.

Reducing Debt: ICLR's debt to equity ratio has increased from 33.8% to 61.9% over the past 5 years.

Debt Coverage: ICLR's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: ICLR's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

ICON Dividend Yield vs Market
How does ICON dividend yield compare to the market?
SegmentDividend Yield
Company (ICON)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Life Sciences)0.3%
Analyst forecast in 3 Years (ICON)0%

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

High Dividend: Unable to evaluate ICLR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ICLR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ICLR's dividend payments have been increasing.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ICLR has not reported any payouts.


Discover strong dividend paying companies

Management

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

10.0yrs

Average management tenure


CEO

Steve Cutler (62 yo)

6.92yrs

Tenure

US$9,601,000

Compensation

Dr. Steven A. Cutler, also known as Steve, Ph D., MBA, serves as Chairman of Association of Clinical Research Organizations since January 01, 2021. He has been the Chief Executive Officer of ICON Public Li...


CEO Compensation Analysis

Steve Cutler's Compensation vs ICON Earnings
How has Steve Cutler's remuneration changed compared to ICON's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$210m

Mar 31 2022n/an/a

US$168m

Dec 31 2021US$10mUS$1m

US$153m

Sep 30 2021n/an/a

US$178m

Jun 30 2021n/an/a

US$364m

Mar 31 2021n/an/a

US$338m

Dec 31 2020US$8mUS$1m

US$328m

Sep 30 2020n/an/a

US$322m

Jun 30 2020n/an/a

US$324m

Mar 31 2020n/an/a

US$368m

Dec 31 2019US$8mUS$1m

US$369m

Sep 30 2019n/an/a

US$362m

Jun 30 2019n/an/a

US$353m

Mar 31 2019n/an/a

US$333m

Dec 31 2018US$8mUS$1m

US$323m

Sep 30 2018n/an/a

US$306m

Jun 30 2018n/an/a

US$295m

Mar 31 2018n/an/a

US$288m

Dec 31 2017US$7mUS$1m

US$281m

Sep 30 2017n/an/a

US$285m

Jun 30 2017n/an/a

US$274m

Mar 31 2017n/an/a

US$271m

Dec 31 2016US$6mUS$790k

US$262m

Sep 30 2016n/an/a

US$251m

Jun 30 2016n/an/a

US$249m

Mar 31 2016n/an/a

US$247m

Dec 31 2015US$7mUS$766k

US$240m

Compensation vs Market: Steve's total compensation ($USD9.60M) is about average for companies of similar size in the US market ($USD13.00M).

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


Leadership Team

Experienced Management: ICLR's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: ICLR's board of directors are considered experienced (5 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

What is the ownership structure of ICLR?
Owner TypeNumber of SharesOwnership Percentage
State or Government1,1010.001%
Individual Insiders572,8410.7%
General Public1,019,5361.3%
Institutions79,933,12998.0%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Top 25 shareholders own 65.3% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.76%
Massachusetts Financial Services Company
7,958,693$1.6b21.15%0.39%
7.88%
WCM Investment Management, LLC
6,423,666$1.3b-5.62%2.84%
5.07%
Wellington Management Group LLP
4,133,216$815.2m-12.09%0.14%
3.61%
Boston Partners Global Investors, Inc.
2,946,362$581.1m10.65%0.47%
3.36%
American Century Investment Management Inc
2,736,805$539.8m-1.3%0.38%
3.08%
Lazard Asset Management LLC
2,508,167$494.7m464.25%0.47%
3.02%
Ninety One UK Limited
2,458,793$484.9m5.38%0.78%
2.83%
FMR LLC
2,309,836$455.5m-12.08%0.04%
2.79%
ClearBridge Investments, LLC
2,273,281$448.3m-1.92%0.4%
2.26%
Comgest S.A.
1,841,706$363.2m-12.56%1.7%
2.13%
Fidelity International Ltd
1,739,292$343.0m2.53%0.18%
1.91%
William Blair Investment Management, LLC
1,555,066$306.7m35.57%0.54%
1.83%
J O Hambro Capital Management Limited
1,490,145$293.9m-2.01%1.64%
1.72%
Polen Capital Management, LLC
1,404,775$277.0m-9.78%0.72%
1.69%
Westfield Capital Management Company, L.P.
1,374,683$271.1m4.05%2.02%
1.57%
Invesco Ltd.
1,283,679$253.2m0.01%0.08%
1.41%
Renaissance Technologies LLC
1,149,958$226.8m-9.95%0.27%
1.36%
Janus Henderson Group plc
1,109,648$218.8m-4.42%0.12%
1.29%
Steadfast Capital Management LP
1,053,357$207.7m0.16%4.54%
1.24%
Sustainable Growth Advisers, LP
1,010,003$199.2m24.11%1.37%
1.21%
Oddo Bhf Asset Management SAS
989,274$195.1m1.75%3.44%
1.11%
AustralianSuper Pty. Ltd.
906,452$178.8m0%0.67%
1.09%
Capital Research and Management Company
892,533$176.0m22.87%0.01%
1.09%
Baron Capital Group, Inc.
885,458$174.6m14.84%0.46%
0.98%
Franklin Resources, Inc.
799,686$157.7m48.98%0.06%

Company Information

ICON Public Limited Company's employee growth, exchange listings and data sources


Key Information

  • Name: ICON Public Limited Company
  • Ticker: ICLR
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$16.079b
  • Shares outstanding: 81.53m
  • Website: https://www.iconplc.com

Number of Employees


Location

  • ICON Public Limited Company
  • South County Business Park
  • Leopardstown
  • Dublin
  • Co. Dublin
  • 18
  • Ireland


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IJFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998
ICLRNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMay 1998
ICLR NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1998

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.