NasdaqGS:PRAH

Stock Analysis Report

Executive Summary

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

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


Market Performance


7 Day Return

1.7%

PRAH

0.4%

US Life Sciences

0.4%

US Market


1 Year Return

-2.5%

PRAH

13.5%

US Life Sciences

6.9%

US Market

Return vs Industry: PRAH underperformed the US Life Sciences industry which returned 13.5% over the past year.

Return vs Market: PRAH underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

PRAHIndustryMarket
7 Day1.7%0.4%0.4%
30 Day-7.7%-4.7%-1.1%
90 Day-1.9%-3.9%-0.5%
1 Year-2.5%-2.5%13.7%13.5%9.3%6.9%
3 Year73.7%73.7%78.4%76.9%45.8%36.4%
5 Yearn/a111.6%102.1%62.9%45.1%

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

Valuation

Is PRA Health Sciences undervalued compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PRAH ($98.49) is trading below our estimate of fair value ($119.97)

Significantly Undervalued: PRAH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PRAH is poor value based on its PE Ratio (40.4x) compared to the Life Sciences industry average (33x).

PE vs Market: PRAH is poor value based on its PE Ratio (40.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PRAH is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: PRAH is overvalued based on its PB Ratio (5.6x) compared to the US Life Sciences industry average (4.5x).


Next Steps

Future Growth

How is PRA Health Sciences forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRAH's forecast earnings growth (16.9% per year) is above the savings rate (2.7%).

Earnings vs Market: PRAH's earnings (16.9% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: PRAH's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRAH's revenue (7.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PRAH's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PRAH's Return on Equity is forecast to be high in 3 years time (26.4%)


Next Steps

Past Performance

How has PRA Health Sciences performed over the past 5 years?

47.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRAH has become profitable over the past 5 years, growing earnings by 47.9% per year.

Accelerating Growth: PRAH's earnings growth over the past year (39.8%) is below its 5-year average (47.9% per year).

Earnings vs Industry: PRAH earnings growth over the past year (39.8%) underperformed the Life Sciences industry 45%.


Return on Equity

High ROE: PRAH's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: PRAH's Return on Assets is below or equal to the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: PRAH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PRA Health Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: PRAH's short term assets ($869.2M) do not cover its short term liabilities ($879.8M)

Long Term Liabilities: PRAH's short term assets (869.2M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: PRAH's debt to equity ratio (95.9%) is considered high

Reducing Debt: PRAH's debt to equity ratio has reduced from 273.6% to 95.9% over the past 5 years.

Debt Coverage: PRAH's debt is well covered by operating cash flow (21.3%).

Interest Coverage: PRAH's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: PRAH has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRAH's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is PRA Health Sciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PRAH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PRAH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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.


Next Steps

Management

What is the CEO of PRA Health Sciences's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Colin Shannon (60yo)

9.8yrs

Tenure

US$7,870,225

Compensation

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 ($USD7.87M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Colin's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: PRAH's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Board: PRAH's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$649,401,68810 Sep 19
KKR & Co. Inc.
EntityCompany
Shares6,666,684
Max PriceUS$97.41

Ownership Breakdown


Management Team

  • Colin Shannon (60yo)

    Chairman

    • Tenure: 9.8yrs
    • Compensation: US$7.87m
  • Michael Kirchengast

    Senior Vice President of Scientific Affairs

    • Tenure: 0yrs
  • Kent Thoelke

    Executive VP & Chief Scientific Officer

    • Tenure: 0yrs
  • Chris Gaenzle (52yo)

    EVP, Chief Administrative Officer & General Counsel

    • Tenure: 0yrs
  • Tami Klerr-Naivar

    Executive VP

    • Tenure: 0yrs
  • David Passov

    Senior VP & Head of Project Management - EAPA

    • Tenure: 0yrs
  • Patrick Spine (48yo)

    Vice President of Human Resources

    • Tenure: 6.8yrs
  • Mike Bonello (49yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$4.48m
  • Christine Rogers

    Director of Public Relations & Corporate Communications

    • Tenure: 0yrs
  • Tom Byrne

    Vice President of Legal Affairs

    • Tenure: 0yrs

Board Members

  • Lind Grais (63yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$227.50k
  • Alex Dickinson (57yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$200.00k
  • Jim Momtazee (47yo)

    Independent Director

    • Tenure: 6.1yrs
  • Colin Shannon (60yo)

    Chairman

    • Tenure: 9.8yrs
    • Compensation: US$7.87m
  • Jeff Barber (66yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$220.00k
  • Matt Young (50yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$210.00k
  • Max Lin (38yo)

    Independent Director

    • Tenure: 6.1yrs

Company Information

PRA Health Sciences, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRA Health Sciences, Inc.
  • Ticker: PRAH
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$6.185b
  • Shares outstanding: 62.80m
  • Website: https://prahs.com

Number of Employees


Location

  • PRA Health Sciences, Inc.
  • 4130 ParkLake Avenue
  • Suite 400
  • Raleigh
  • North Carolina
  • 27612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRAHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2014
8PHDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014

Biography

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide. The company op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:23
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.