NasdaqGS:PRAH

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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 Analysis

Solid track record and good value.


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

Stable Share Price: PRAH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.7%

PRAH

1.5%

US Life Sciences

1.1%

US Market


1 Year Return

11.5%

PRAH

21.4%

US Life Sciences

4.6%

US Market

Return vs Industry: PRAH underperformed the US Life Sciences industry which returned 21.1% over the past year.

Return vs Market: PRAH exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

PRAHIndustryMarket
7 Day5.7%1.5%1.1%
30 Day11.1%9.5%5.5%
90 Day3.5%12.1%-4.9%
1 Year11.5%11.5%21.6%21.4%7.0%4.6%
3 Year35.6%35.6%80.5%79.2%28.6%20.1%
5 Year188.3%188.3%126.5%123.5%52.5%35.3%

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?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRAH ($97.46) is trading below our estimate of fair value ($161.69)

Significantly Below Fair Value: PRAH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRAH is good value based on its PE Ratio (26x) compared to the Life Sciences industry average (35.3x).

PE vs Market: PRAH is poor value based on its PE Ratio (26x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: PRAH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

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


Next Steps

Future Growth

How is PRA Health Sciences forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRAH's forecast earnings growth (22.8% per year) is above the savings rate (2.2%).

Earnings vs Market: PRAH's earnings (22.8% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: PRAH's revenue (7.5% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: PRAH's revenue (7.5% 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 (25.6%)


Next Steps

Past Performance

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

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRAH has high quality earnings.

Growing Profit Margin: PRAH's current net profit margins (7.7%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: PRAH has become profitable over the past 5 years, growing earnings by 37.6% per year.

Accelerating Growth: PRAH's earnings growth over the past year (50.7%) exceeds its 5-year average (37.6% per year).

Earnings vs Industry: PRAH earnings growth over the past year (50.7%) exceeded the Life Sciences industry 10.6%.


Return on Equity

High ROE: Whilst PRAH's Return on Equity (21.63%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is PRA Health Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: PRAH's short term assets ($954.9M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: PRAH's short term assets ($954.9M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: PRAH's debt to equity ratio (117.3%) is considered high.

Reducing Debt: PRAH's debt to equity ratio has reduced from 147.9% to 117.3% over the past 5 years.

Debt Coverage: PRAH's debt is well covered by operating cash flow (21%).

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


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Colin Shannon (60yo)

10.33yrs

Tenure

US$7,160,216

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 ($USD7.16M) is about average for companies of similar size in the US market ($USD7.43M).

Compensation vs Earnings: Colin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Colin Shannon
Chairman10.33yrsUS$7.16m0.099% $6.1m
Michael Bonello
Executive VP & CFO2yrsUS$2.14m0.037% $2.3m
Kent Thoelke
Executive VP & Chief Scientific Officerno datano datano data
Christopher Gaenzle
Executive VPno datano data0.061% $3.8m
Thomas Byrne
Vice President of Legal Affairsno datano datano data
Christine Rogers
Director of Public Relations & Corporate Communicationsno datano datano data
Tami Klerr-Naivar
Executive VP and Chief Sales & Marketing Officer0.33yrno datano data
Patrick Spine
Vice President of Human Resources7.33yrsno datano data
Michael Kirchengast
Senior Vice President of Scientific Affairsno datano datano data
David Passov
Senior VP & Head of Project Management - EAPAno datano datano data

4.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: PRAH's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Colin Shannon
Chairman10.33yrsUS$7.16m0.099% $6.1m
Linda Grais
Independent Director4.58yrsUS$227.50k0.015% $919.2k
Alexander Dickinson
Independent Director2.75yrsUS$200.00k0.0081% $502.4k
James Momtazee
Lead Independent Director0.75yrUS$170.60k0.0050% $311.1k
Jeffrey Barber
Independent Director5.5yrsUS$220.00k0.023% $1.4m
Matthew Young
Independent Director5.25yrsUS$210.00k0.011% $670.1k

4.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PRAH'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: PRAH insiders have only sold shares 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

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$6.210b
  • Shares outstanding: 63.72m
  • 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 operates in two segments, Clinical Research and Data Solutions. The Clinical Research segment offers product registration services, including clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. It also provides strategic solutions, such as embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services for Phase I and Phase IIa studies, as well as bioanalytical analysis. The Data Solutions segment offers data, analytics, technology, and consulting solutions to the life sciences market. Its services include market intelligence services, such as targeting and compensation, and pharmaceutical audit suite services; consulting and services comprising brand analytics, managed markets, commercial effectiveness, and scientific studies/clinical hubs; and technology-enabled products and services that clients to access and analyze Symphony Health and integrated third-party data. PRA Health Sciences, Inc. conducts clinical trials in the areas of pharmaceutical development, including oncology, immunology, central nervous system, inflammation, respiratory, cardiometabolic, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. PRA Health Sciences, Inc. was founded in 1976 and is headquartered in Raleigh, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 03:54
End of Day Share Price2020/05/22 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.