NasdaqGS:ICLR

Stock Analysis Report

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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. More Details

Rewards

PE ratio (31.5x) is below the Life Sciences industry average (41.8x)

Earnings are forecast to grow 16.6% per year

Risk Analysis

No risks detected for ICLR from our risk checks.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ICLR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

ICLR

0.8%

US Life Sciences

2.8%

US Market


1 Year Return

17.1%

ICLR

37.0%

US Life Sciences

20.7%

US Market

Return vs Industry: ICLR underperformed the US Life Sciences industry which returned 37% over the past year.

Return vs Market: ICLR underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

ICLRIndustryMarket
7 Day0.8%0.8%2.8%
30 Day4.7%2.6%12.3%
90 Day4.6%7.9%6.4%
1 Year17.1%17.1%37.2%37.0%23.4%20.7%
3 Year64.0%64.0%97.7%96.4%47.2%37.4%
5 Year159.3%159.3%178.8%175.1%94.1%72.7%

Long-Term 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?

31.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICLR ($191.14) is trading above our estimate of fair value ($140.81)

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 (31.5x) compared to the US Life Sciences industry average (41.8x).

PE vs Market: ICLR is poor value based on its PE Ratio (31.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ICLR is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ICLR is good value based on its PB Ratio (5.9x) compared to the US Life Sciences industry average (6.6x).


Next Steps

Future Growth

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

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICLR's forecast earnings growth (16.6% per year) is above the savings rate (2.2%).

Earnings vs Market: ICLR's earnings (16.6% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: ICLR's revenue (9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ICLR's revenue (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 low in 3 years time (19.4%).


Next Steps

Past Performance

How has ICON performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICLR has high quality earnings.

Growing Profit Margin: ICLR's current net profit margins (11.6%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: ICLR's earnings have grown by 9% 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 (-11.1%) over the past year, making it difficult to compare to the Life Sciences industry average (30.4%).


Return on Equity

High ROE: ICLR's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is ICON's financial position?


Financial Position Analysis

Short Term Liabilities: ICLR's short term assets ($1.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ICLR's short term assets ($1.8B) exceed its long term liabilities ($111.1M).


Debt to Equity History and Analysis

Debt Level: ICLR's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: ICLR's debt to equity ratio has reduced from 40.6% to 20.4% over the past 5 years.

Debt Coverage: ICLR's debt is well covered by operating cash flow (144.9%).

Interest Coverage: ICLR's interest payments on its debt are well covered by EBIT (45.2x coverage).


Balance Sheet


Next Steps

Dividend

What is ICON 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 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.


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?

6.2yrs

Average management tenure


CEO

Steve Cutler (60 yo)

3.67yrs

Tenure

US$7,685,000

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 ($USD7.69M) is about average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Cutler
CEO & Director3.67yrsUS$7.69m0.058%
$ 5.8m
Brendan Brennan
Chief Financial Officer8.75yrsUS$2.24m0.028%
$ 2.8m
Diarmaid Cunningham
Chief Administrative Officer4.33yrsno datano data
Jonathan Curtain
Vice President of Corporate Finance & Investor Relationsno datano datano data
Thomas O'Leary
Chief Information Officerno datano datano data
Simon Holmes
Executive Vice President of Investor Relations & Corporate Development8.08yrsno datano data
Niamh Murphy
Director of Corporate Communicationsno datano datano data
Joe Cronin
Chief Human Resources Officer4.33yrsno datano data
Dana Poff
Executive Vice President of Program Management1.83yrsno datano data
Gary Curtis
Senior Vice President of Global Clinical Pharmacology11.58yrsno datano data
Hugh McDonald
Managing Director of US Operations - ICON Central Laboratoriesno datano datano data
Peter Schueler
Senior Vice President of Drug Development Services - CNS13.83yrsno datano data

6.2yrs

Average Tenure

49yo

Average Age

Experienced Management: ICLR's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Cutler
CEO & Director3.67yrsUS$7.69m0.058%
$ 5.8m
Mary Pendergast
Independent Non-Executive Director6.75yrsUS$320.00kno data
John Climax
Founder & Independent Non-Executive Director10.83yrsUS$308.00k1.16%
$ 114.9m
Eugene McCague
Independent Non-Executive Director3.08yrsUS$260.00kno data
Ciaran Murray
Non-Executive Chairman of the Board3.67yrsUS$516.00kno data
William Hall
Independent Non-Executive Director7.75yrsUS$337.00kno data
Ronan Murphy
Lead Independent Director1.83yrsUS$330.00kno data
Joan Garahy
Independent Non-Executive Director3yrsUS$269.00kno data
Hugh Brady
Independent Non-Executive Director6.58yrsUS$320.00kno data
Julie O'Neill
Independent Non-Executive Director1.33yrsUS$113.00kno data

4.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ICLR's board of directors are considered experienced (4.3 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$9.935b
  • Shares outstanding: 52.78m
  • 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 U...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:49
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.