10Y annualized return is
average
at 8.6% per year
IQV has met or exceeded earnings expectations in
all
recent quarters (10/10)
Reasonable Price-to-Earnings Ratio
Attractive Price-to-Sales Ratio
Strong Return on Equity
Healthy Profit Margins
Low Debt Levels
Decent Interest Coverage
💪 Strong Market Position
📈 Solid Financial Performance
🧠 Innovation in AI and Technology
🌱 Positive Growth Indicators
🚀 Recovery in Biotech Funding
High Price-to-Book Ratio
Low Liquidity Ratios
⚠️ High Cancellation Rates
📉 Margin Pressures
🔄 Ongoing Volatility
📉 Pricing Pressure Challenges
Overall, IQVIA demonstrates strong business quality with solid financial performance and a robust market position, although it faces challenges such as high cancellation rates and pricing pressures. Future prospects are promising with positive growth indicators and increased biotech funding, albeit with some anticipated volatility.
Analysis Date: February 6, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
IQVIA Holdings Inc. helps companies in the healthcare industry, like those making medicines and medical devices, by providing valuable information and services. They offer tools and technology that help these companies understand how their products are used and how to improve patient care. IQVIA also supports research for new treatments and helps manage clinical trials, which are tests to see if new medicines are safe and effective. Essentially, they connect data and healthcare, making it easier for companies to make informed decisions.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$291.56
Current Market Price: $150.48
IV/P Ratio: 1.94x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
48.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for IQV
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (20.43)
P/B ratio ≤ 1.5 (4.62)
Current ratio ≥ 2.0 (0.84x)
Long-term debt < Net current assets (-0.31x)
Margin of safety (48.0%)
IQV does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The return on equity (ROE) of 21.05% is a strong indicator of profitability, demonstrating effective management in generating returns for shareholders.
With a gross profit margin of 31.44%, operating profit margin of 14.59%, and net profit margin of 8.91%, the company shows strong profitability at different levels of its income statement.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
21.05%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
31.44%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
8.91%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The debt-to-equity ratio of 0.22 and debt-to-assets ratio of 0.05 indicate that IQV has low leverage, making it less risky in terms of debt obligations.
An interest coverage ratio of 3.36 suggests that the company generates sufficient income to cover its interest expenses, indicating good financial health.
Both the current ratio (0.84) and quick ratio (0.84) are below 1, which indicates potential liquidity concerns as the company may struggle to meet short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.22x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.84x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
IQVIA has a significant presence in the healthcare and life sciences sectors, with partnerships with 22 of the top 25 pharma companies. This positions the company favorably in a competitive landscape.
The company demonstrated resilience with a revenue growth of 5.5% at constant currency and a significant increase in free cash flow by 41% year-over-year, reaching $2.1 billion.
IQVIA introduced 60 innovations, including 39 AI-enabled applications, showcasing its commitment to leveraging technology for improved patient outcomes.
The company faced nearly 50% higher cancellations in 2024 compared to the average of the previous three years, reflecting challenges in maintaining client contracts.
Despite some margin expansion, the company is navigating challenges related to pricing pressures and stranded costs from delayed trials, affecting gross margins.
The backlog increased to $31.1 billion, and the company expects revenue growth of 4% to 7% in 2025, indicating a favorable outlook despite some volatility.
Biotech funding exceeded $100 billion in 2024, which is expected to translate into increased RFP flow and project awards for IQVIA in the coming quarters.
Despite positive indicators, the company anticipates continued volatility in R&D Solutions, which may affect short-term growth.
With a competitive CRO landscape, pricing pressures may continue to challenge profitability margins, affecting long-term growth sustainability.
