| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
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.
Rewards
Risk Analysis
ICON Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$241.24 |
| 52 Week High | US$313.00 |
| 52 Week Low | US$196.34 |
| Beta | 0.95 |
| 1 Month Change | 14.26% |
| 3 Month Change | 14.59% |
| 1 Year Change | 0.91% |
| 3 Year Change | 53.49% |
| 5 Year Change | 129.77% |
| Change since IPO | 3,693.38% |
Recent News & Updates
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.
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...
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
| ICLR | US Life Sciences | US Market | |
|---|---|---|---|
| 7D | 3.5% | 1.9% | 3.2% |
| 1Y | 0.9% | -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
| ICLR volatility | |
|---|---|
| ICLR Average Weekly Movement | 5.4% |
| Life Sciences Industry Average Movement | 11.0% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1990 | 40,500 | Steve Cutler | https://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
| ICLR fundamental statistics | |
|---|---|
| Market Cap | US$19.67b |
| Earnings (TTM) | US$209.90m |
| Revenue (TTM) | US$7.59b |
93.7x
P/E Ratio2.6x
P/S RatioIs ICLR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ICLR income statement (TTM) | |
|---|---|
| Revenue | US$7.59b |
| Cost of Revenue | US$5.48b |
| Gross Profit | US$2.11b |
| Other Expenses | US$1.90b |
| Earnings | US$209.90m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.57 |
| Gross Margin | 27.74% |
| Net Profit Margin | 2.77% |
| Debt/Equity Ratio | 61.9% |
How did ICLR perform over the long term?
See historical performance and comparisonValuation
Is ICLR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation 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.
| What is ICLR's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$19.67b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.2x |
| Enterprise Value/EBITDA | 19.7x |
| PEG Ratio | 3.2x |
Price to Earnings Ratio vs Peers
How does ICLR's PE Ratio compare to its peers?
| ICLR PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 46.9x | ||
PKI PerkinElmer | 29.6x | 3.9% | US$19.9b |
RGEN Repligen | 87.5x | 18.4% | US$13.9b |
WST West Pharmaceutical Services | 36.8x | 9.0% | US$25.2b |
AVTR Avantor | 33.6x | 21.6% | US$19.3b |
ICLR ICON | 93.7x | 29.4% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 93.7x |
| Fair PE Ratio | 32x |
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
3/6Future 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
0/6Past 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
1/6Financial 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
0/6Dividend 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/14 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.