IQVIA Holdings Inc.
IQVIA Holdings Inc. Fundamental Analysis
IQVIA Holdings Inc. (IQV) shows moderate financial fundamentals with a PE ratio of 20.76, profit margin of 8.34%, and ROE of 22.28%. The company generates $16.3B in annual revenue with moderate year-over-year growth of 5.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IQV's fundamental strength across five key dimensions:
Efficiency Score
WeakIQV struggles to generate sufficient returns from assets.
Valuation Score
ModerateIQV shows balanced valuation metrics.
Growth Score
ModerateIQV shows steady but slowing expansion.
Financial Health Score
WeakIQV carries high financial risk with limited liquidity.
Profitability Score
ModerateIQV maintains healthy but balanced margins.
Key Financial Metrics
Is IQV Expensive or Cheap?
P/E Ratio
IQV trades at 20.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IQV's PEG of 2.63 indicates potential overvaluation.
Price to Book
The market values IQVIA Holdings Inc. at 4.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.07 times EBITDA. This is generally considered low.
How Well Does IQV Make Money?
Net Profit Margin
For every $100 in sales, IQVIA Holdings Inc. keeps $8.34 as profit after all expenses.
Operating Margin
Core operations generate 14.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.28 in profit for every $100 of shareholder equity.
ROA
IQVIA Holdings Inc. generates $4.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IQVIA Holdings Inc. produces operating cash flow of $2.66B, showing steady but balanced cash generation.
Free Cash Flow
IQVIA Holdings Inc. generates strong free cash flow of $2.48B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $14.59 in free cash annually.
FCF Yield
IQV converts 8.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How IQV Stacks Against Its Sector Peers
| Metric | IQV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.76 | 29.43 | Better (Cheaper) |
| ROE | 22.28% | 800.00% | Weak |
| Net Margin | 8.34% | -20145.00% (disorted) | Weak |
| Debt/Equity | 2.49 | 0.30 | Weak (High Leverage) |
| Current Ratio | 0.75 | 4.64 | Weak Liquidity |
| ROA | 4.54% | -17936.00% (disorted) | Weak |
IQV outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IQVIA Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.79%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
442.47%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
50.77%
Industry Style: Defensive, Growth, Innovation
High Growth