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PPD

PPDNasdaqGS:PPD Stock Report

Last Price

US$47.28

Market Cap

US$16.6b

7D

0.2%

1Y

36.4%

Updated

08 Dec, 2021

Data

Company Financials +
PPD fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health1/6
Dividends0/6

PPD Stock Overview

PPD, Inc., together with its subsidiaries, provides drug development services to the biopharmaceutical industry worldwide.

PPD Competitors

IQVIA Holdings

NYSE:IQV

US$46.0b

ICON

NasdaqGS:ICLR

US$20.5b

Syneos Health

NasdaqGS:SYNH

US$8.9b

Medpace Holdings

NasdaqGS:MEDP

US$5.9b

Price History & Performance

Summary of all time highs, changes and price drops for PPD
Historical stock prices
Current Share PriceUS$47.28
52 Week HighUS$47.41
52 Week LowUS$31.54
Beta0
1 Month Change0.063%
3 Month Change1.42%
1 Year Change36.45%
3 Year Changen/a
5 Year Changen/a
Change since IPO57.60%

Recent News & Updates

Nov 18
I Ran A Stock Scan For Earnings Growth And PPD (NASDAQ:PPD) Passed With Ease

I Ran A Stock Scan For Earnings Growth And PPD (NASDAQ:PPD) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Nov 06

Both Revenue And Cost Synergies For The PPD-Thermo Fisher Scientific Combination As From 2022

Thermo Fisher Scientific has announced that it will acquire PPD for $47.50 per share. After having covered many biotechs for SA, I make sense of this acquisition from the perspective of pharmaceutical research, where PPD operates. In this case, by serving its pharma and biotech customer base through a one-stop solution, TMO stands to benefit from significant revenue and cost synergies. I also consider the regulatory and talent-related risks. TMO has surged since I last covered it, with momentum indicators pointing to a drop, possibly to the $590-600 level, thereby constituting an opportunity to buy for those who do not own the stock.

Shareholder Returns

PPDUS Life SciencesUS Market
7D0.2%-4.7%-6.1%
1Y36.4%1.8%4.2%

Return vs Industry: PPD exceeded the US Life Sciences industry which returned 34.6% over the past year.

Return vs Market: PPD exceeded the US Market which returned 21.7% over the past year.

Price Volatility

Is PPD's price volatile compared to industry and market?
PPD volatility
PPD Average Weekly Movement0.4%
Life Sciences Industry Average Movement9.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: PPD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: PPD's weekly volatility (0%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198526,000David Simmonshttps://www.ppd.com

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 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.

PPD Fundamentals Summary

How do PPD's earnings and revenue compare to its market cap?
PPD fundamental statistics
Market CapUS$16.61b
Earnings (TTM)US$359.24m
Revenue (TTM)US$5.88b

46.2x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPD income statement (TTM)
RevenueUS$5.88b
Cost of RevenueUS$1.97b
Gross ProfitUS$3.91b
ExpensesUS$3.55b
EarningsUS$359.24m

Valuation

Is PPD undervalued compared to its fair value and its price relative to the market?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPD ($47.28) is trading below our estimate of fair value ($49.91)

Significantly Below Fair Value: PPD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PPD is poor value based on its PE Ratio (46.2x) compared to the US Life Sciences industry average (45.3x).

PE vs Market: PPD is poor value based on its PE Ratio (46.2x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: PPD is poor value based on its PEG Ratio (2.3x)


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 11 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPD's forecast earnings growth (20.5% per year) is above the savings rate (2%).

Earnings vs Market: PPD's earnings (20.5% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PPD's revenue (6.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PPD's revenue (6.3% 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 (108.4%).


Past Performance

How has PPD performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPD has high quality earnings.

Growing Profit Margin: PPD's current net profit margins (6.1%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: PPD's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: PPD's earnings growth over the past year (567.3%) exceeds its 5-year average (12% per year).

Earnings vs Industry: PPD earnings growth over the past year (567.3%) exceeded the Life Sciences industry 72.2%.


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 (13.4%).

Interest Coverage: PPD's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is PPD current dividend yield, its reliability and sustainability?


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?

4.5yrs

Average management tenure


CEO

David Simmons (56 yo)

9.58yrs

Tenure

US$3,417,530

Compensation

Mr. David S. Simmons serves as Senior Advisor at Abingworth LLP since joining the firm in May 2021. He has been Chairman and Chief Executive Officer at PPD, Inc. since May 2012. He has been the Chairman an...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.42M) is below average for companies of similar size in the US market ($USD11.14M).

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 (4.5 years average tenure).


Board Members

Experienced Board: PPD's board of directors are considered experienced (4.6 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 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
  • Implied Market Cap: US$16.614b
  • Shares outstanding: 351.39m
  • Website: https://www.ppd.com

Number of Employees


Location

  • PPD, Inc.
  • 929 North Front Street
  • Wilmington
  • North Carolina
  • 28401-3331
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 23:23
End of Day Share Price2021/12/07 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.