Market Cap
US$10.0b
Last Updated
2020/06/04 05:30 UTC
Data Sources
Company Financials +
Executive Summary
PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with weak fundamentals.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.8%
PPD
1.0%
US Life Sciences
3.8%
US Market
1 Year Return
n/a
PPD
19.8%
US Life Sciences
9.7%
US Market
Return vs Industry: Insufficient data to determine how PPD performed against the US Life Sciences industry.
Return vs Market: Insufficient data to determine how PPD performed against the US Market.
Shareholder returns
| PPD | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.8% | 1.0% | 3.8% |
| 30 Day | 19.5% | 9.0% | 11.4% |
| 90 Day | -0.03% | 16.4% | 6.8% |
| 1 Year | n/a | 20.1%19.8% | 12.1%9.7% |
| 3 Year | n/a | 85.4%84.1% | 36.2%27.2% |
| 5 Year | n/a | 131.7%128.8% | 63.7%45.4% |
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
4 weeks ago | Simply Wall St
A Look At The Fair Value Of PPD, Inc. (NASDAQ:PPD)Valuation
Is PPD undervalued compared to its fair value and its price relative to the market?
130.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PPD ($28.59) is trading above our estimate of fair value ($27.94)
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 (130.4x) compared to the Life Sciences industry average (37.6x).
PE vs Market: PPD is poor value based on its PE Ratio (130.4x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: PPD is poor value based on its PEG Ratio (3.7x)
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.
Next Steps
Future Growth
How is PPD forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
34.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPD's forecast earnings growth (34.9% per year) is above the savings rate (2.2%).
Earnings vs Market: PPD's earnings (34.9% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PPD's revenue (9.3% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: PPD's revenue (9.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PPD's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has PPD performed over the past 5 years?
-47.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPD has a large one-off loss of $86.0M impacting its March 31 2020 financial results.
Growing Profit Margin: PPD's current net profit margins (1.5%) are lower than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: PPD's earnings have declined by -47% per year over the past 5 years.
Accelerating Growth: PPD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PPD had negative earnings growth (-1%) over the past year, making it difficult to compare to the Life Sciences industry average (10.6%).
Return on Equity
High ROE: PPD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
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 (9.9%).
Interest Coverage: PPD's interest payments on its debt are not well covered by EBIT (1.3x coverage).
Balance Sheet
Next Steps
Dividend
What is PPD's current dividend yield, its reliability and sustainability?
0.055%
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?
3.0yrs
Average management tenure
CEO
David Simmons (54yo)
8.08yrs
Tenure
US$7,659,839
Compensation
Mr. David S. Simmons has been Chairman and Chief Executive Officer at PPD, Inc. (alternative name Jaguar Holding Company I, LLC) since May 2012. He has been the Chairman and Chief Executive Officer of Phar ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD11.58M).
Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 8.08yrs | US$7.66m | 0.43% $43.2m | |
| Executive VP | 2.08yrs | US$1.61m | 0.0075% $743.5k | |
| Chief Operating Officer | 13.17yrs | US$2.17m | 0.13% $12.9m | |
| Executive VP | 3yrs | US$1.26m | 0.027% $2.7m | |
| Executive VP & Chief Commercial Officer | 0.58yr | US$1.44m | 0.0098% $978.7k | |
| Chief Accounting Officer | 5yrs | no data | 0.0017% $166.4k | |
| Executive VP & Chief HR Officer | 1.92yrs | no data | no data | |
| Executive Vice President of Global Laboratory Services | 3yrs | no data | 0.0040% $401.6k | |
| Executive Vice President of Global Clinical Development | 3.67yrs | no data | 0.027% $2.7m | |
| Chief Medical Officer | no data | no data | 0.0083% $828.2k |
3.0yrs
Average Tenure
52yo
Average Age
Experienced Management: PPD's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 8.08yrs | US$7.66m | 0.43% $43.2m | |
| Independent Director | 8.67yrs | no data | no data | |
| Independent Director | 3.08yrs | US$189.25k | 0.032% $3.2m | |
| Independent Director | 2.67yrs | US$188.10k | 0.0035% $347.8k | |
| Independent Director | 8.5yrs | no data | no data | |
| Independent Director | 8.5yrs | no data | no data | |
| Independent Director | 1.17yrs | no data | no data | |
| Independent Director | 2.33yrs | US$186.83k | 0.0096% $956.7k | |
| Independent Director | 2.83yrs | no data | no data |
3.1yrs
Average Tenure
48yo
Average Age
Experienced Board: PPD's board of directors are considered experienced (3.1 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: PPD only recently listed within the past 12 months.
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$9.966b
- Shares outstanding: 348.58m
- Website: https://www.ppdi.com
Number of Employees
Location
- PPD, Inc.
- 929 North Front Street
- Wilmington
- North Carolina
- 28401-3331
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PPD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 2020 |
Biography
PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide. The company operates in two segments, Clinical Development Services and Laboratory Services. It offers clinical development services, including product development and consulting, early development, Phases II-IV clinical trial management, accelerated enrollment, peri- and post-approval, and medical communications services. The company also provides laboratory services comprising bioanalytical, biomarker, vaccine science, good manufacturing practice, and central laboratory services. It serves pharmaceutical, biotechnology, medical device, and government organizations, as well as other industry participants. The company was founded in 1985 and is headquartered in Wilmington, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 05:30 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.