Market Cap
US$16.2b
Last Updated
2021/04/19 23:19 UTC
Data Sources
Company Financials +
Executive Summary
PPD, Inc., together with its subsidiaries, provides drug development services to the biopharmaceutical industry worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with proven track record.
Similar Companies
Share Price & News
How has PPD's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PPD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: PPD's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
20.3%
PPD
2.2%
US Life Sciences
1.3%
US Market
1 Year Return
102.0%
PPD
62.3%
US Life Sciences
53.8%
US Market
Return vs Industry: PPD exceeded the US Life Sciences industry which returned 62.3% over the past year.
Return vs Market: PPD exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| PPD | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.3% | 2.2% | 1.3% |
| 30 Day | 21.4% | 8.2% | 5.1% |
| 90 Day | 28.5% | 2.9% | 8.9% |
| 1 Year | 102.0%102.0% | 62.5%62.3% | 56.6%53.8% |
| 3 Year | n/a | 116.7%115.4% | 64.4%53.6% |
| 5 Year | n/a | 216.1%212.3% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is PPD's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Calculating The Intrinsic Value Of PPD, Inc. (NASDAQ:PPD)2 months ago | Simply Wall St
Introducing PPD (NASDAQ:PPD), A Stock That Climbed 20% In The Last Year2 months ago | Simply Wall St
Should You Take Comfort From Insider Transactions At PPD, Inc. (NASDAQ:PPD)?Valuation
Is PPD undervalued compared to its fair value and its price relative to the market?
131.19x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PPD ($46.27) is trading above our estimate of fair value ($41.23)
Significantly Below Fair Value: PPD is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PPD is poor value based on its PE Ratio (131.4x) compared to the US Life Sciences industry average (46.6x).
PE vs Market: PPD is poor value based on its PE Ratio (131.4x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: PPD is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: PPD has negative assets, so we can't compare its PB Ratio to the US Life Sciences industry average.
Future Growth
How is PPD forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
27.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPD's forecast earnings growth (27.8% per year) is above the savings rate (2%).
Earnings vs Market: PPD's earnings (27.8% per year) are forecast to grow faster than the US market (18% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PPD's revenue (8.4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: PPD's revenue (8.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PPD's Return on Equity is forecast to be very high in 3 years time (184.4%).
Past Performance
How has PPD performed over the past 5 years?
-37.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPD has high quality earnings.
Growing Profit Margin: PPD's current net profit margins (2.6%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: PPD's earnings have declined by 37.2% per year over the past 5 years.
Accelerating Growth: PPD's earnings growth over the past year (119.4%) exceeds its 5-year average (-37.2% per year).
Earnings vs Industry: PPD earnings growth over the past year (119.4%) exceeded the Life Sciences industry 7.4%.
Return on Equity
High ROE: PPD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is PPD's financial position?
Financial Position Analysis
Short Term Liabilities: PPD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: PPD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: PPD has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: PPD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: PPD's debt is not well covered by operating cash flow (5.8%).
Interest Coverage: PPD's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Dividend
What is PPD current dividend yield, its reliability and sustainability?
0.005%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PPD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PPD'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 PPD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PPD'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 PPD'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?
3.8yrs
Average management tenure
CEO
David Simmons (55 yo)
8.92yrs
Tenure
US$3,417,530
Compensation
Mr. David S. Simmons has been Chairman and Chief Executive Officer at PPD, Inc. since May 2012. He has been the Chairman and Chief Executive Officer of Pharmaceutical Product Development, LLC. since June 4...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD3.42M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: PPD's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: PPD's board of directors are considered experienced (3.9 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
PPD, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: PPD, Inc.
- Ticker: PPD
- Exchange: NasdaqGS
- Founded: 1985
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$16.214b
- Shares outstanding: 350.95m
- Website: https://www.ppd.com
Number of Employees
Location
- PPD, Inc.
- 929 North Front Street
- Wilmington
- North Carolina
- 28401-3331
- United States
Listings
Biography
PPD, Inc., together with its subsidiaries, provides drug development services to the biopharmaceutical industry worldwide. The company operates through two segments, Clinical Development Services and Labor...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 23:19 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.