NasdaqGS:PPD

Stock Analysis Report

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Executive Summary

PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide.


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

PPDIndustryMarket
7 Day5.8%1.0%3.8%
30 Day19.5%9.0%11.4%
90 Day-0.03%16.4%6.8%
1 Yearn/a20.1%19.8%12.1%9.7%
3 Yearn/a85.4%84.1%36.2%27.2%
5 Yearn/a131.7%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

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

NamePositionTenureCompensationOwnership
David Simmons
Chairman & CEO8.08yrsUS$7.66m0.43% $43.2m
Christopher Scully
Executive VP2.08yrsUS$1.61m0.0075% $743.5k
William Sharbaugh
Chief Operating Officer13.17yrsUS$2.17m0.13% $12.9m
B. Hartman
Executive VP3yrsUS$1.26m0.027% $2.7m
Anshul Thakral
Executive VP & Chief Commercial Officer0.58yrUS$1.44m0.0098% $978.7k
Glen Donovan
Chief Accounting Officer5yrsno data0.0017% $166.4k
Ronald Garrow
Executive VP & Chief HR Officer1.92yrsno datano data
Christopher Fikry
Executive Vice President of Global Laboratory Services3yrsno data0.0040% $401.6k
David Johnston
Executive Vice President of Global Clinical Development3.67yrsno data0.027% $2.7m
Karen Kaucic
Chief Medical Officerno datano data0.0083% $828.2k

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: PPD's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Simmons
Chairman & CEO8.08yrsUS$7.66m0.43% $43.2m
Allen Thorpe
Independent Director8.67yrsno datano data
Jeffrey Kindler
Independent Director3.08yrsUS$189.25k0.032% $3.2m
Colin Hill
Independent Director2.67yrsUS$188.10k0.0035% $347.8k
Stephen Wise
Independent Director8.5yrsno datano data
P. Hunter Philbrick
Independent Director8.5yrsno datano data
Joe Bress
Independent Director1.17yrsno datano data
Maria Hilado
Independent Director2.33yrsUS$186.83k0.0096% $956.7k
Stephen Ensley
Independent Director2.83yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 05:30
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.