Iqvia Holdings Inc. (NYSE: IQV)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001478242
Market Cap 42.51 Bn
P/B 6.90
P/E 33.13
P/S 2.67
ROIC (Qtr) 8.28
Div Yield % 0.00
Rev 1y % (Qtr) 5.24
Total Debt (Qtr) 15.19 Bn
Debt/Equity (Qtr) 2.47

About

IQVIA Holdings Inc., often recognized by its stock symbol IQV, operates in the life sciences industry, providing advanced analytics, technology solutions, and clinical research services. With a presence in over 100 countries and approximately 87,000 employees, IQVIA creates intelligent connections across all aspects of healthcare. The company's analytics, transformative technology, big data resources, extensive domain expertise, and network of partners enable life sciences companies to make critical decisions and perform better. IQVIA's main business...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 2.80B provides strong 11.93x coverage of stock compensation 235M, indicating sustainable incentive practices.
  • Operating cash flow of 2.80B provides exceptional 2804x coverage of minority interest expenses 1M, showing strong core operations.
  • Robust free cash flow of 2.29B exceeds capital expenditure of 518M by 4.41x, indicating strong organic growth funding capability.
  • Cash position of 1.81B provides exceptional 1814x coverage of minority interest expenses 1M, indicating strong liquidity.
  • Operating cash flow of 2.80B provides strong 2.32x coverage of operating expenses 1.21B, showing operational efficiency.

Bear case

  • Operating cash flow of 2.80B barely covers its investment activities of (1.51B), with a coverage ratio of -1.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.81B provide limited coverage of acquisition spending of (976M), which is -1.86x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.80B provides insufficient coverage of deferred revenue obligations of 2.16B, which is 1.30x, raising concerns about future service delivery capabilities.
  • Operating earnings of 2.29B show weak coverage of depreciation charges of 1.13B, with a 2.03 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 1.13B relative to operating cash flow of 2.80B, which is 0.40x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 229.80 Bn 34.98 5.25 35.68 Bn
2 DHR Danaher Corp /De/ 168.69 Bn 48.16 6.95 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.54 Bn 56.01 13.81 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.51 Bn 33.13 2.67 15.19 Bn
5 A Agilent Technologies, Inc. 41.38 Bn 31.76 5.96 3.35 Bn
6 NTRA Natera, Inc. 32.34 Bn -104.61 15.28 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.48 Bn 36.47 7.73 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.36 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.96 2.83
EV to Cash from Ops. EV/CFO 20.03 19.40
EV to Debt EV to Debt 3.70 55.09
EV to EBIT EV/EBIT 24.47 19.01
EV to EBITDA EV/EBITDA 16.96 4.60
EV to Free Cash Flow [EV/FCF] EV/FCF 24.57 -2.36
EV to Market Cap EV to Market Cap 1.32 1.57
EV to Revenue EV/Rev 3.53 5.06
Price to Book Value [P/B] P/B 6.90 1.40
Price to Earnings [P/E] P/E 33.13 19.36
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) 3.25 -129.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 12.50 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 15.39 24.08
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -9.35 -55.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.34 -457.27
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.66 -42.01
EBT Growth (1y) % EBT 1y % (Qtr) 6.43 -72.92
EPS Growth (1y) % EPS 1y % (Qtr) -4.80 -70.88
FCF Growth (1y) % FCF 1y % (Qtr) 15.11 56.94
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.28 185.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.21 1.23
Current Ratio Curr Ratio (Qtr) 0.70 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 2.47 -0.84
Interest Cover Ratio Int Coverage (Qtr) 3.25 -129.02
Times Interest Earned Times Interest Earned (Qtr) 3.25 -129.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.50 -98.25
EBIT Margin % EBIT Margin % (Qtr) 14.43 -116.67
EBT Margin % EBT Margin % (Qtr) 9.98 -115.28
Gross Margin % Gross Margin % (Qtr) 33.80 44.77
Net Profit Margin % Net Margin % (Qtr) 8.10 -114.12