NYSE:IQV

Stock Analysis Report

Executive Summary

IQVIA Holdings Inc. provides advanced analytics, technology solutions, and contract research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific.

Rewards

Earnings are forecast to grow 30.53% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (2.2%) are lower than last year (11.9%)



Snowflake Analysis

High growth potential with questionable track record.


Similar Companies

Share Price & News

How has IQVIA Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IQV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

IQV

0.8%

US Life Sciences

0.8%

US Market


1 Year Return

18.4%

IQV

20.1%

US Life Sciences

17.8%

US Market

Return vs Industry: IQV underperformed the US Life Sciences industry which returned 20.1% over the past year.

Return vs Market: IQV matched the US Market which returned 17.8% over the past year.


Shareholder returns

IQVIndustryMarket
7 Day-1.0%0.8%0.8%
30 Day0.6%8.3%1.8%
90 Day-5.0%6.7%4.1%
1 Year18.4%18.4%20.3%20.1%20.4%17.8%
3 Year78.6%78.6%103.5%101.9%45.9%36.4%
5 Year142.2%142.2%133.2%130.0%68.1%49.6%

Price Volatility Vs. Market

How volatile is IQVIA Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

115.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IQV ($143.84) is trading above our estimate of fair value ($96.96)

Significantly Below Fair Value: IQV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IQV is poor value based on its PE Ratio (116x) compared to the Life Sciences industry average (35.5x).

PE vs Market: IQV is poor value based on its PE Ratio (116x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: IQV is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: IQV is good value based on its PB Ratio (4.6x) compared to the US Life Sciences industry average (5.2x).


Next Steps

Future Growth

How is IQVIA Holdings forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IQV's forecast earnings growth (30.5% per year) is above the savings rate (1.7%).

Earnings vs Market: IQV's earnings (30.5% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: IQV's revenue (7.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: IQV's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IQV's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has IQVIA Holdings performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IQV has high quality earnings.

Growing Profit Margin: IQV's current net profit margins (2.2%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: IQV's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: IQV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IQV had negative earnings growth (-80%) over the past year, making it difficult to compare to the Life Sciences industry average (34.6%).


Return on Equity

High ROE: IQV's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IQVIA Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IQV's short term assets ($4.0B) exceed its short term liabilities ($3.6B).

Long Term Liabilities: IQV's short term assets ($4.0B) do not cover its long term liabilities ($12.9B).


Debt to Equity History and Analysis

Debt Level: IQV's debt to equity ratio (181.1%) is considered high.

Reducing Debt: IQV had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: IQV's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: IQV's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: IQV's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is IQVIA Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IQV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IQV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IQV is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IQV'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 IQVIA Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Ari Bousbib (58yo)

3.2yrs

Tenure

US$16,461,779

Compensation

Mr. Ari Bousbib serves as Chairman and Chief Executive Officer at IQVIA Holdings Inc. since October 2016 and also serves as its President. He has been the Chairman, Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs Market: Ari's total compensation ($USD16.46M) is above average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: IQV's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: IQV's board of directors are considered experienced (3.2 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$284,037,62613 Aug 19
Canada Pension Plan Investment Board
EntityCompany
Shares1,810,887
Max PriceUS$156.85
SellUS$410,323,99212 Aug 19
TPG Capital, L.P.
EntityCompany
Shares2,616,028
Max PriceUS$156.85
SellUS$89,888,38212 Aug 19
Bain Capital, LP
EntityCompany
Shares573,085
Max PriceUS$156.85
SellUS$678,06305 Aug 19
Kevin Knightly
EntityIndividual
Role
Senior Key Executive
President of Information & Technology Solutions
Shares4,278
Max PriceUS$158.50
SellUS$1,100,99131 Jul 19
Kevin Knightly
EntityIndividual
Role
Senior Key Executive
President of Information & Technology Solutions
Shares6,945
Max PriceUS$158.53
SellUS$122,310,70712 Mar 19
Bain Capital, LP
EntityCompany
Shares868,684
Max PriceUS$140.80
SellUS$569,462,78412 Mar 19
TPG Capital, L.P.
EntityCompany
Shares4,044,480
Max PriceUS$140.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ari Bousbib (58yo)

    Chairman

    • Tenure: 3.2yrs
    • Compensation: US$16.46m
  • Mike McDonnell (55yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.57m
  • W. Staub (56yo)

    President of Research & Development Solutions

    • Tenure: 3.1yrs
    • Compensation: US$2.24m
  • Kevin Knightly (58yo)

    President of Information & Technology Solutions

    • Tenure: 3.2yrs
    • Compensation: US$2.19m
  • Eric Sherbet (55yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$1.48m
  • Manny Korakis (45yo)

    Senior VP

    • Tenure: 1.1yrs
  • Alejandro Martinez

    Chief Information Officer

    • Tenure: 5yrs
  • Jeff Spaeder

    Senior VP

    • Tenure: 0yrs
  • Andrew Markwick

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Marla Kessler (49yo)

    Senior Vice President of Strategy

    • Tenure: 0yrs

Board Members

  • John Danhakl (63yo)

    Independent Director

    • Tenure: 3.2yrs
  • John Connaughton (56yo)

    Independent Director

    • Tenure: 11.9yrs
  • Ari Bousbib (58yo)

    Chairman

    • Tenure: 3.2yrs
    • Compensation: US$16.46m
  • John Leonard (62yo)

    Lead Director

    • Tenure: 1.4yrs
    • Compensation: US$325.57k
  • Mike Evanisko (69yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$309.95k
  • Jonathan Coslet (55yo)

    Independent Director

    • Tenure: 16.9yrs
  • Ron Rittenmeyer (72yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$334.95k
  • Colleen Goggins (65yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$312.45k
  • Todd Sisitsky (48yo)

    Independent Director

    • Tenure: 3.2yrs
  • James Fasano (49yo)

    Independent Director

    • Tenure: 3.2yrs

Company Information

IQVIA Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IQVIA Holdings Inc.
  • Ticker: IQV
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$27.910b
  • Shares outstanding: 194.04m
  • Website: https://www.iqvia.com

Number of Employees


Location

  • IQVIA Holdings Inc.
  • 4820 Emperor Boulevard
  • Durham
  • North Carolina
  • 27703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IQVNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2013
QTSDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2013
0JDMLSE (London Stock Exchange)YesCommon StockGBUSDMay 2013
IQV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 2013
IQVHWBAG (Wiener Boerse AG)YesCommon StockATEURMay 2013

Biography

IQVIA Holdings Inc. provides advanced analytics, technology solutions, and contract research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:15
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.