IQVIA Holdings (NYSE:IQV) - Share price, News & Analysis

IQV fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

IQV Overview

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

Rewards

Trading at 18.1% below our estimate of its fair value

Earnings are forecast to grow 25.95% per year

Earnings grew by 359.8% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Significant insider selling over the past 3 months

IQVIA Holdings Competitors

Avantor

NYSE:AVTR

US$26.8b

Charles River Laboratories International

NYSE:CRL

US$22.5b

ICON

NasdaqGS:ICLR

US$21.9b

PPD

NasdaqGS:PPD

US$16.4b

Price History & Performance

Summary of all time highs, changes and price drops for IQVIA Holdings
Historical stock prices
Current Share Price	US$262.27
52 Week High	US$146.00
52 Week Low	US$265.34
Beta	1.42
1 Month Change	2.11%
3 Month Change	6.90%
1 Year Change	77.13%
3 Year Change	100.56%
5 Year Change	231.74%
Change since IPO	522.82%

Shareholder Returns

	IQV	US Life Sciences	US Market
7D	1.7%	3.2%	-0.5%
1Y	77.1%	59.6%	37.5%

Return vs Industry: IQV exceeded the US Life Sciences industry which returned 58.3% over the past year.

Return vs Market: IQV exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is IQV's price volatile compared to industry and market?
IQV volatility
IQV Beta	1.42
Industry Beta	0.97
Market Beta	1

Stable Share Price: IQV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: IQV's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	74,000	Ari Bousbib	https://www.iqvia.com

IQVIA Holdings Inc. provides advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients’ outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services.

IQVIA Holdings Fundamentals Summary

How do IQVIA Holdings's earnings and revenue compare to its market cap?
IQV fundamental statistics
Market Cap	US$49.77b
Earnings (TTM)	US$607.00m
Revenue (TTM)	US$12.93b

82.8x

P/E Ratio

3.9x

P/S Ratio

Is IQV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IQV income statement (TTM)
Revenue	US$12.93b
Cost of Revenue	US$8.59b
Gross Profit	US$4.34b
Expenses	US$3.74b
Earnings	US$607.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.17
Gross Margin	33.59%
Net Profit Margin	4.69%
Debt/Equity Ratio	214.0%

How did IQV perform over the long term?

See historical performance and comparison

Valuation

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

18.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IQV ($262.27) is trading below our estimate of fair value ($320.1)

Significantly Below Fair Value: IQV is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: IQV is poor value based on its PE Ratio (82.8x) compared to the US Life Sciences industry average (52.2x).

PE vs Market: IQV is poor value based on its PE Ratio (82.8x) compared to the US market (17.7x).

Price to Earnings Growth Ratio

PEG Ratio: IQV is poor value based on its PEG Ratio (3.2x)

Price to Book Ratio

PB vs Industry: IQV is overvalued based on its PB Ratio (8.7x) compared to the US Life Sciences industry average (6.1x).

Future Growth

How is IQVIA Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IQV's forecast earnings growth (26% per year) is above the savings rate (2%).

Earnings vs Market: IQV's earnings (26% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: IQV's revenue (9.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: IQV's revenue (9.4% 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 (24.2%)

Past Performance

How has IQVIA Holdings performed over the past 5 years?

-6.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IQV has high quality earnings.

Growing Profit Margin: IQV's current net profit margins (4.7%) are higher than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: IQV's earnings have declined by 6.1% per year over the past 5 years.

Accelerating Growth: IQV's earnings growth over the past year (359.8%) exceeds its 5-year average (-6.1% per year).

Earnings vs Industry: IQV earnings growth over the past year (359.8%) exceeded the Life Sciences industry 56.9%.

Return on Equity

High ROE: IQV's Return on Equity (10.9%) is considered low.

Financial Health

How is IQVIA Holdings's financial position?

Financial Position Analysis

Short Term Liabilities: IQV's short term assets ($5.1B) exceed its short term liabilities ($4.8B).

Long Term Liabilities: IQV's short term assets ($5.1B) do not cover its long term liabilities ($13.4B).

Debt to Equity History and Analysis

Debt Level: IQV's debt to equity ratio (214%) 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 well covered by operating cash flow (22.1%).

Interest Coverage: IQV's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate IQV'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 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

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

4.9yrs

Average management tenure

CEO

Ari Bousbib (60 yo)

4.92yrs

Tenure

US$25,575,986

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 ($USD25.58M) is above average for companies of similar size in the US market ($USD11.36M).

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

Leadership Team

Experienced Management: IQV's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: IQV's board of directors are considered experienced (4.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: IQV 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.

Data	Last Updated (UTC time)
Company Analysis	2021/09/23 23:06
End of Day Share Price	2021/09/23 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data