NasdaqGS:ICLR

Stock Analysis Report

Executive Summary

ICON Public Limited Company, a clinical research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has ICON's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ICLR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.4%

ICLR

5.1%

US Life Sciences

9.9%

US Market


1 Year Return

-1.1%

ICLR

-7.6%

US Life Sciences

-11.9%

US Market

Return vs Industry: ICLR exceeded the US Life Sciences industry which returned -7.6% over the past year.

Return vs Market: ICLR exceeded the US Market which returned -11.9% over the past year.


Shareholder returns

ICLRIndustryMarket
7 Day11.4%5.1%9.9%
30 Day-13.5%-9.1%-15.0%
90 Day-20.8%-17.9%-21.5%
1 Year-1.1%-1.1%-7.4%-7.6%-10.0%-11.9%
3 Year69.4%69.4%57.3%56.3%12.3%5.1%
5 Year93.3%93.3%82.4%79.9%32.5%18.1%

Price Volatility Vs. Market

How volatile is ICON's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ICLR ($135.04) is trading below our estimate of fair value ($150.49)

Significantly Below Fair Value: ICLR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ICLR is good value based on its PE Ratio (19.7x) compared to the Life Sciences industry average (29x).

PE vs Market: ICLR is poor value based on its PE Ratio (19.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ICLR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ICLR is overvalued based on its PB Ratio (4.5x) compared to the US Life Sciences industry average (4.2x).


Next Steps

Future Growth

How is ICON forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICLR's forecast earnings growth (9.5% per year) is above the savings rate (1.7%).

Earnings vs Market: ICLR's earnings (9.5% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: ICLR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ICLR's revenue (7.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ICLR's revenue (7.1% 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 high in 3 years time (29.5%)


Next Steps

Past Performance

How has ICON performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICLR has high quality earnings.

Growing Profit Margin: ICLR's current net profit margins (13.1%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: ICLR's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: ICLR's earnings growth over the past year (14.3%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: ICLR earnings growth over the past year (14.3%) underperformed the Life Sciences industry 21.5%.


Return on Equity

High ROE: ICLR's Return on Equity (22.7%) is considered high.


Next Steps

Financial Health

How is ICON's financial position?


Financial Position Analysis

Short Term Liabilities: ICLR's short term assets ($1.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: ICLR's short term assets ($1.6B) exceed its long term liabilities ($118.7M).


Debt to Equity History and Analysis

Debt Level: ICLR's debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: ICLR's debt to equity ratio has increased from 0.02% to 21.1% over the past 5 years.

Debt Coverage: ICLR's debt is well covered by operating cash flow (118%).

Interest Coverage: ICLR's interest payments on its debt are well covered by EBIT (67.5x coverage).


Balance Sheet

Inventory Level: ICLR has a low level of unsold assets or inventory.

Debt Coverage by Assets: ICLR's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ICLR'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 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.


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 ICLR'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?

3.7yrs

Average management tenure


CEO

Steve Cutler (59yo)

3s

Tenure

US$7,669,000

Compensation

Dr. Steven A. Cutler, also known as Steve, Ph.D., MBA, has been the Chief Executive Officer of ICON Public Limited Company since March 01, 2017, Dr. Cutler is the Chief Operating Officer of ICON at ICON C ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD7.67M) is about average for companies of similar size in the US market ($USD7.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Cutler
CEO & Director3yrsUS$7.67m0.057% $4.1m
Brendan Brennan
Chief Financial Officer8.08yrsUS$2.24m0.027% $2.0m
Jonathan Curtain
Vice President of Corporate Finance & Investor Relationsno datano datano data
Thomas O'Leary
Chief Information Officerno datano datano data
Diarmaid Cunningham
Chief Administrative Officer3.67yrsno datano data
Simon Holmes
Executive Vice President of Investor Relations & Corporate Development7.42yrsno datano data
Niamh Murphy
Director of Corporate Communicationsno datano datano data
Joe Cronin
Chief Human Resources Officer3.67yrsno datano data
Dana Poff
Executive Vice President of Program Management1.17yrsno datano data
Gary Curtis
Senior Vice President of Global Clinical Pharmacology10.92yrsno datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: ICLR's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Cutler
CEO & Director3yrsUS$7.67m0.057% $4.1m
Mary Pendergast
Independent Non-Executive Director6yrsUS$407.00kno data
John Climax
Founder & Independent Non-Executive Director10.17yrsUS$395.00k1.14% $82.4m
Eugene McCague
Independent Non-Executive Director2.42yrsUS$287.00kno data
Ciaran Murray
Non-Executive Chairman of the Board3yrsUS$543.00kno data
William Hall
Independent Non-Executive Director7yrsUS$424.00kno data
Ronan Murphy
Lead Independent Director1.17yrsUS$362.00kno data
Joan Garahy
Independent Non-Executive Director2.33yrsUS$296.00kno data
Hugh Brady
Independent Non-Executive Director5.92yrsUS$407.00kno data
Julie O'Neill
Independent Non-Executive Director0.67yrUS$116.00kno data

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ICLR's board of directors are considered experienced (3.7 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

ICON Public Limited Company's company bio, 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
  • Market Cap: US$7.241b
  • Shares outstanding: 53.62m
  • 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

Biography

ICON Public Limited Company, a clinical research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. It 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. The company’s clinical development services include product development planning, strategic consulting, study protocol preparation, clinical pharmacology, pharmacokinetic and pharmacodynamic analysis, site feasibility, patient recruitment and retention, digital patient and site, project management, clinical operations/monitoring, patient centric monitoring, data management, and adaptive and virtual trial services. Its clinical development services also comprise medical imaging, biostatistics, medical affairs, pharmacovigilance, strategic regulatory, electronic endpoint adjudication, medical writing and publishing, interactive response technologies, functional, strategic resourcing central laboratory, bioanalytical laboratory, biomarket development, strategy and analytics, late phase research, patient centered science, and medical device and diagnostics research services, as well as access, commercialization, and communication services, and research trials for us government agencies. The company was founded in 1990 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 02:55
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.