NYSE:PKI

Stock Analysis Report

Executive Summary

PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, life sciences, and applied services markets worldwide.

Rewards

Earnings are forecast to grow 25.64% per year

Earnings grew by 83.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results



Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.5%

PKI

-1.2%

US Life Sciences

-1.3%

US Market


1 Year Return

15.4%

PKI

27.5%

US Life Sciences

22.0%

US Market

Return vs Industry: PKI underperformed the US Life Sciences industry which returned 29.7% over the past year.

Return vs Market: PKI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PKIIndustryMarket
7 Day-1.5%-1.2%-1.3%
30 Day2.4%1.6%1.8%
90 Day15.7%14.9%9.3%
1 Year15.7%15.4%27.8%27.5%24.6%22.0%
3 Year92.7%90.7%105.0%103.7%49.2%39.6%
5 Year123.0%118.3%137.5%134.3%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

47.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PKI ($101.69) is trading above our estimate of fair value ($95.99)

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


Price To Earnings Ratio

PE vs Industry: PKI is poor value based on its PE Ratio (48x) compared to the Life Sciences industry average (37.4x).

PE vs Market: PKI is poor value based on its PE Ratio (48x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PKI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: PKI is good value based on its PB Ratio (4.2x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKI's forecast earnings growth (25.6% per year) is above the savings rate (1.7%).

Earnings vs Market: PKI's earnings (25.6% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: PKI's revenue (5.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PKI's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKI's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has PerkinElmer performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKI has a large one-off loss of $69.7M impacting its September 29 2019 financial results.

Growing Profit Margin: PKI's current net profit margins (8.3%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: PKI's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: PKI's earnings growth over the past year (83.3%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: PKI earnings growth over the past year (83.3%) exceeded the Life Sciences industry 34.6%.


Return on Equity

High ROE: PKI's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PerkinElmer's financial position?


Financial Position Analysis

Short Term Liabilities: PKI's short term assets ($1.5B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: PKI's short term assets ($1.5B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: PKI's debt to equity ratio (83.4%) is considered high.

Reducing Debt: PKI's debt to equity ratio has increased from 40% to 83.4% over the past 5 years.

Debt Coverage: PKI's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: PKI's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: PKI's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.28%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: PKI's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PKI's dividend (0.28%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: PKI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: PKI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.7yrs

Average management tenure


CEO

Prahlad Singh (54yo)

0.08yrs

Tenure

US$2,057,894

Compensation

Dr. Prahlad R. Singh, PhD has been the Chief Executive Officer of PerkinElmer, Inc. since December 30, 2019. He serves as Director of PerkinElmer, Inc. since August 21, 2019. He has been President at Perki ...


CEO Compensation Analysis

Compensation vs Market: Prahlad's total compensation ($USD2.06M) is below average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

2.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: PKI's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: PKI's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: PKI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$94,56922 Nov 19
Pascale Witz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,043
Max PriceUS$90.67
SellUS$165,12003 Sep 19
Alexis Michas
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,000
Max PriceUS$82.56
SellUS$148,27407 Feb 19
Nicholas Lopardo
EntityIndividual
Shares1,600
Max PriceUS$92.67

Ownership Breakdown

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


Management Team

  • Rob Friel (63yo)

    • Tenure: 0.08yrs
    • Compensation: US$13.96m
  • Dave Francisco

    CFO of Human Health & Corporate Treasurer

    • Tajinder Vohra (53yo)

      Senior Vice President of Global Operations

      • Tenure: 1.9yrs
    • Joel Goldberg (50yo)

      Senior VP of Administration

      • Tenure: 11.5yrs
      • Compensation: US$3.08m
    • Andrew Okun (49yo)

      VP & Chief Accounting Officer

      • Tenure: 8.8yrs
    • Jamey Mock (42yo)

      Senior VP & CFO

      • Tenure: 1.7yrs
      • Compensation: US$4.27m
    • Daniel Tereau (51yo)

      Senior Vice President of Strategy & Business Development

      • Tenure: 4yrs
    • Deborah Butters (49yo)

      Senior VP & Chief Human Resources Officer

      • Tenure: 3.5yrs
    • Prahlad Singh (54yo)

      CEO, President & Director

      • Tenure: 0.08yrs
      • Compensation: US$2.06m
    • Bryan Kipp

      Vice President of Investor Relations


      Board Members

      • Alexis Michas (61yo)

        Non-Executive Chairman

        • Tenure: 0.08yrs
        • Compensation: US$337.01k
      • Pat Sullivan (67yo)

        Independent Director

        • Tenure: 11.9yrs
        • Compensation: US$268.76k
      • Sylvie Grégoire (58yo)

        Independent Director

        • Tenure: 4.9yrs
        • Compensation: US$265.01k
      • Peter Barrett (66yo)

        Independent Director

        • Tenure: 7.9yrs
        • Compensation: US$276.26k
      • Frank Witney (65yo)

        Independent Director

        • Tenure: 3.5yrs
        • Compensation: US$265.01k
      • Sam Chapin (61yo)

        Independent Director

        • Tenure: 3.3yrs
        • Compensation: US$290.01k
      • Pascale Witz (52yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: US$265.01k
      • Prahlad Singh (54yo)

        CEO, President & Director

        • Tenure: 0.08yrs
        • Compensation: US$2.06m

      Company Information

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


      Key Information

      • Name: PerkinElmer, Inc.
      • Ticker: PKI
      • Exchange: NYSE
      • Founded: 1937
      • Industry: Life Sciences Tools and Services
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$11.042b
      • Shares outstanding: 111.10m
      • Website: https://www.perkinelmer.com

      Number of Employees


      Location

      • PerkinElmer, Inc.
      • 940 Winter Street
      • Waltham
      • Massachusetts
      • 2451
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      PKINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
      PKNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
      0KHELSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
      PKI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

      Biography

      PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, life sciences, and applied services markets worldwide. The company operates in two segments, Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment offers a suite of solutions, including reagents, informatics, and detection and imaging technologies that enable scientists to enhance research breakthroughs in the life sciences research market, as well as laboratory services. It also provides analytical technologies, solutions, and services for the environmental, food, and industrial markets that enable its customers to understand the characterization and health of various aspects, including air, water, and soil. In addition, this segment offers solutions to farmers and food producers; and analytical instrumentation for the industrial market, which includes the chemical, semiconductor and electronics, energy, lubricant, petrochemical, and polymer industries. The Diagnostics segment provides instruments, reagents, and software products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used for testing and screening genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for applications in oncology and drug discovery. The company serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies. PerkinElmer, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 23:54
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/29
      Annual Earnings2018/12/30


      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.