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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.07%

ICLR

1.3%

US Life Sciences

0.6%

US Market


1 Year Return

32.8%

ICLR

30.4%

US Life Sciences

24.6%

US Market

Return vs Industry: ICLR exceeded the US Life Sciences industry which returned 29.9% over the past year.

Return vs Market: ICLR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

ICLRIndustryMarket
7 Day0.07%1.3%0.6%
30 Day2.8%2.9%3.0%
90 Day17.7%16.2%10.6%
1 Year32.8%32.8%30.7%30.4%27.3%24.6%
3 Year115.6%115.6%111.4%110.0%50.5%40.8%
5 Year207.5%207.5%141.9%138.6%78.9%59.1%

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?

26.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICLR ($169.54) is trading above our estimate of fair value ($133.65)

Significantly Below Fair Value: ICLR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ICLR is good value based on its PE Ratio (25.3x) compared to the Life Sciences industry average (37.4x).

PE vs Market: ICLR is poor value based on its PE Ratio (25.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ICLR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ICLR is overvalued based on its PB Ratio (6.1x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

How is ICON forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICLR's forecast earnings growth (9.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ICLR's earnings (9.2% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ICLR's revenue (6.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ICLR's revenue (6.9% 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 (28.4%)


Next Steps

Past Performance

How has ICON performed over the past 5 years?

13.1%

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 (12.9%).


Past Earnings Growth Analysis

Earnings Trend: ICLR's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: ICLR's earnings growth over the past year (18.4%) exceeds its 5-year average (13.1% per year).

Earnings vs Industry: ICLR earnings growth over the past year (18.4%) underperformed the Life Sciences industry 34.6%.


Return on Equity

High ROE: ICLR's Return on Equity (23.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ICON's financial position?


Financial Position Analysis

Short Term Liabilities: ICLR's short term assets ($1.5B) exceed its short term liabilities ($729.0M).

Long Term Liabilities: ICLR's short term assets ($1.5B) exceed its long term liabilities ($479.1M).


Debt to Equity History and Analysis

Debt Level: ICLR's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ICLR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ICLR's debt is well covered by operating cash flow (97%).

Interest Coverage: ICLR's interest payments on its debt are well covered by EBIT (68.1x 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 4.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0%

Current dividend yield vs market & industry

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

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

3.5yrs

Average management tenure


CEO

Steve Cutler (59yo)

2.8yrs

Tenure

US$7,860,000

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 ($USD7.86M) is about average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

3.5yrs

Average Tenure

48yo

Average Age

Experienced Management: ICLR's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ICLR's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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.


Management Team

  • Simon Holmes (52yo)

    Executive Vice President of Investor Relations & Corporate Development

    • Tenure: 7.3yrs
  • Dana Poff

    Executive Vice President of Program Management

    • Tenure: 1yrs
  • Tom O'Leary

    Chief Information Officer

    • Niamh Murphy

      Director of Corporate Communications

      • Gary Curtis

        Senior Vice President of Global Clinical Pharmacology

        • Tenure: 10.8yrs
      • Steve Cutler (59yo)

        CEO & Director

        • Tenure: 2.8yrs
        • Compensation: US$7.86m
      • Diarmaid Cunningham (44yo)

        Chief Administrative Officer

        • Tenure: 3.5yrs
      • Brendan Brennan (40yo)

        Chief Financial Officer

        • Tenure: 7.9yrs
        • Compensation: US$2.55m
      • Joe Cronin

        Chief Human Resources Officer

        • Tenure: 3.5yrs
      • Jonathan Curtain

        Vice President of Corporate Finance & Investor Relations


        Board Members

        • Mary Pendergast (68yo)

          Non-Executive Director

          • Tenure: 5.9yrs
          • Compensation: US$355.00k
        • John Climax (66yo)

          Founder & Non-Executive Director

          • Tenure: 10yrs
          • Compensation: US$344.00k
        • Eugene McCague (60yo)

          Non-Executive Director

          • Tenure: 2.3yrs
          • Compensation: US$206.00k
        • Ciaran Murray (56yo)

          Non-Executive Chairman of the Board

          • Tenure: 2.8yrs
          • Compensation: US$3.07m
        • Billy Hall (70yo)

          Non-Executive Director

          • Tenure: 6.9yrs
          • Compensation: US$385.00k
        • Steve Cutler (59yo)

          CEO & Director

          • Tenure: 2.8yrs
          • Compensation: US$7.86m
        • Ronan Murphy (61yo)

          Lead Independent Director

          • Tenure: 1yrs
          • Compensation: US$275.00k
        • Joan Garahy (56yo)

          Non-Executive Director

          • Tenure: 2.2yrs
          • Compensation: US$206.00k
        • Hugh Brady (59yo)

          Non-Executive Director

          • Tenure: 5.8yrs
          • Compensation: US$350.00k
        • Julie O'Neill (52yo)

          Non-Executive Director

          • Tenure: 0.5yrs

        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$9.401b
        • Shares outstanding: 53.64m
        • 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 Analysis2020/01/23 00:49
        End of Day Share Price2020/01/22 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.