| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 5/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
PPD Stock Overview
PPD, Inc., together with its subsidiaries, provides drug development services to the biopharmaceutical industry worldwide.
PPD Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$47.28 |
| 52 Week High | US$47.41 |
| 52 Week Low | US$31.54 |
| Beta | 0 |
| 1 Month Change | 0.063% |
| 3 Month Change | 1.42% |
| 1 Year Change | 36.45% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 57.60% |
Recent News & Updates
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...
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
| PPD | US Life Sciences | US Market | |
|---|---|---|---|
| 7D | 0.2% | -4.7% | -6.1% |
| 1Y | 36.4% | 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
| PPD volatility | |
|---|---|
| PPD Average Weekly Movement | 0.4% |
| Life Sciences Industry Average Movement | 9.1% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1985 | 26,000 | David Simmons | https://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
| PPD fundamental statistics | |
|---|---|
| Market Cap | US$16.61b |
| Earnings (TTM) | US$359.24m |
| Revenue (TTM) | US$5.88b |
46.2x
P/E Ratio2.8x
P/S RatioIs PPD overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PPD income statement (TTM) | |
|---|---|
| Revenue | US$5.88b |
| Cost of Revenue | US$1.97b |
| Gross Profit | US$3.91b |
| Expenses | US$3.55b |
| Earnings | US$359.24m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.02 |
| Gross Margin | 66.54% |
| Net Profit Margin | 6.11% |
| Debt/Equity Ratio | -1,098.9% |
How did PPD perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/12/08 23:23 |
| End of Day Share Price | 2021/12/07 00:00 |
| Earnings | 2021/09/30 |
| 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.