PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide. More Details
Excellent balance sheet with questionable track record.
Share Price & News
How has PRA Health Sciences's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PRAH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: PRAH's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Life Sciences
1 Year Return
US Life Sciences
Return vs Industry: PRAH exceeded the US Life Sciences industry which returned 51.4% over the past year.
Return vs Market: PRAH exceeded the US Market which returned 51.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is PRA Health Sciences's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StIs PRA Health Sciences, Inc. (NASDAQ:PRAH) Expensive For A Reason? A Look At Its Intrinsic Value
3 months ago | Simply Wall StShareholders Are Thrilled That The PRA Health Sciences (NASDAQ:PRAH) Share Price Increased 221%
3 months ago | Simply Wall StWhen Should You Buy PRA Health Sciences, Inc. (NASDAQ:PRAH)?
Is PRA Health Sciences undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PRAH ($172.3) is trading above our estimate of fair value ($132.58)
Significantly Below Fair Value: PRAH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PRAH is poor value based on its PE Ratio (51.4x) compared to the US Life Sciences industry average (42.8x).
PE vs Market: PRAH is poor value based on its PE Ratio (51.4x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: PRAH is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: PRAH is good value based on its PB Ratio (7.2x) compared to the US Life Sciences industry average (7.3x).
How is PRA Health Sciences forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRAH's forecast earnings growth (11.9% per year) is above the savings rate (2%).
Earnings vs Market: PRAH's earnings (11.9% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: PRAH's earnings are forecast to grow, but not significantly.
Revenue vs Market: PRAH's revenue (8.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: PRAH's revenue (8.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PRAH's Return on Equity is forecast to be high in 3 years time (22.8%)
How has PRA Health Sciences performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRAH has high quality earnings.
Growing Profit Margin: PRAH's current net profit margins (6.4%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: PRAH's earnings have grown significantly by 26.2% per year over the past 5 years.
Accelerating Growth: PRAH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PRAH had negative earnings growth (-11%) over the past year, making it difficult to compare to the Life Sciences industry average (15.2%).
Return on Equity
High ROE: PRAH's Return on Equity (13.7%) is considered low.
How is PRA Health Sciences's financial position?
Financial Position Analysis
Short Term Liabilities: PRAH's short term assets ($1.6B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: PRAH's short term assets ($1.6B) exceed its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: PRAH's debt to equity ratio (81.5%) is considered high.
Reducing Debt: PRAH's debt to equity ratio has reduced from 124.4% to 81.5% over the past 5 years.
Debt Coverage: PRAH's debt is well covered by operating cash flow (44%).
Interest Coverage: PRAH's interest payments on its debt are well covered by EBIT (13.6x coverage).
What is PRA Health Sciences's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PRAH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PRAH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PRAH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PRAH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PRAH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Colin Shannon (61 yo)
Mr. Colin Shannon has been the Chief Executive Officer at PRA Health Sciences, Inc. since January 1, 2010 and its President since May 2007 and serves as its Chairman of the Board of Directors. Mr. Shannon ...
CEO Compensation Analysis
Compensation vs Market: Colin's total compensation ($USD9.58M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Colin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: PRAH's management team is seasoned and experienced (7.7 years average tenure).
Experienced Board: PRAH's board of directors are considered experienced (4.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PRAH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
PRA Health Sciences, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: PRA Health Sciences, Inc.
- Ticker: PRAH
- Exchange: NasdaqGS
- Founded: 1976
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$11.035b
- Shares outstanding: 64.80m
- Website: https://prahs.com
Number of Employees
- PRA Health Sciences, Inc.
- 4130 ParkLake Avenue
- Suite 400
- North Carolina
- United States
PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide. It operates in...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 22:38|
|End of Day Share Price||2021/05/07 00:00|
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.