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ICLR

ICON NasdaqGS:ICLR Stock Report

Last Price

US$241.24

Market Cap

US$19.7b

7D

3.5%

1Y

0.9%

Updated

14 Aug, 2022

Data

Company Financials +
ICLR fundamental analysis
Snowflake Score
Valuation2/6
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$241.24
52 Week HighUS$313.00
52 Week LowUS$196.34
Beta0.95
1 Month Change14.26%
3 Month Change14.59%
1 Year Change0.91%
3 Year Change53.49%
5 Year Change129.77%
Change since IPO3,693.38%

Recent News & Updates

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...

Jul 26

Icon Q2 2022 Earnings Preview

Icon (NASDAQ:ICLR) is scheduled to announce Q2 earnings results on Wednesday, July 27th, after market close. The consensus EPS Estimate is $2.79 (+31.6% Y/Y) and the consensus Revenue Estimate is $1.93B (+121.5% Y/Y). Over the last 2 years, ICLR has beaten EPS estimates 75% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 9 downward. Revenue estimates have seen 1 upward revision and 8 downward.

Shareholder Returns

ICLRUS Life SciencesUS Market
7D3.5%1.9%3.2%
1Y0.9%-19.8%-10.2%

Return vs Industry: ICLR exceeded the US Life Sciences industry which returned -19.8% over the past year.

Return vs Market: ICLR exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is ICLR's price volatile compared to industry and market?
ICLR volatility
ICLR Average Weekly Movement5.4%
Life Sciences Industry Average Movement11.0%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ICLR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ICLR's weekly volatility (5%) 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$19.67b
Earnings (TTM)US$209.90m
Revenue (TTM)US$7.59b

93.7x

P/E Ratio

2.6x

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

n/a

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

2/6

Valuation Score 2/6

  • 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/Revenue3.2x
Enterprise Value/EBITDA19.7x
PEG Ratio3.2x

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 Average46.9x
PKI PerkinElmer
29.6x3.9%US$19.9b
RGEN Repligen
87.5x18.4%US$13.9b
WST West Pharmaceutical Services
36.8x9.0%US$25.2b
AVTR Avantor
33.6x21.6%US$19.3b
ICLR ICON
93.7x29.4%US$19.7b

Price-To-Earnings vs Peers: ICLR is expensive based on its Price-To-Earnings Ratio (93.7x) compared to the peer average (46.9x).


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 (93.7x) compared to the US Life Sciences industry average (32.6x)


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 Ratio93.7x
Fair PE Ratio32x

Price-To-Earnings vs Fair Ratio: ICLR is expensive based on its Price-To-Earnings Ratio (93.7x) compared to the estimated Fair Price-To-Earnings Ratio (32x).


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 ($241.24) is trading below our estimate of fair value ($405.19)

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 less than 20% higher than the current share price.


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Future Growth

How is ICON forecast to perform in the next 1 to 3 years based on estimates from 11 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 (14.5% per year).

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

Revenue vs Market: ICLR's revenue (7.6% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ICLR's revenue (7.6% 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 (14.5%).


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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.


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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

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?

9.8yrs

Average management tenure


CEO

Steve Cutler (62 yo)

5.42yrs

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

Compensation vs Market: Steve's total compensation ($USD9.60M) is about average for companies of similar size in the US market ($USD12.88M).

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 (9.8 years average tenure).


Board Members

Experienced Board: ICLR's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

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$19.667b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 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.