Iqvia Holdings Inc.

IQV

Services-Commercial Physical & Biological Research

Mkt Cap

$41.32B

PE

30.45

Debt

$14.33B

Cash

$1.444B

EV

$54.21B

FCF

$1.624B

Market Cap

$41.32B

P/E Ratio

30.45

Debt

$14.33B

Cash

$1.444B

EV

$54.21B

FCF

$1.624B

Charts data: {"Earnings":[{"time":"2014-12-30","value":356383000},{"time":"2015-12-30","value":387205000},{"time":"2016-12-30","value":115000000},{"time":"2017-12-30","value":1309000000},{"time":"2018-12-30","value":259000000},{"time":"2019-12-30","value":191000000},{"time":"2020-12-30","value":279000000},{"time":"2021-12-30","value":966000000},{"time":"2022-12-30","value":1091000000},{"time":"2023-12-30","value":1358000000}],"Sales":[{"time":"2014-12-30","value":5459998000},{"time":"2015-12-30","value":5737619000},{"time":"2016-12-30","value":6878000000},{"time":"2017-12-30","value":9739000000},{"time":"2018-12-30","value":10412000000},{"time":"2019-12-30","value":11088000000},{"time":"2020-12-30","value":11359000000},{"time":"2021-12-30","value":13874000000},{"time":"2022-12-30","value":14410000000},{"time":"2023-12-30","value":14984000000}],"Net Margins":[{"time":"2014-12-30","value":0.06527163563063576},{"time":"2015-12-30","value":0.06748531054432161},{"time":"2016-12-30","value":0.016719976737423668},{"time":"2017-12-30","value":0.13440805010781395},{"time":"2018-12-30","value":0.024875144064540913},{"time":"2019-12-30","value":0.017225829725829724},{"time":"2020-12-30","value":0.024562021304692313},{"time":"2021-12-30","value":0.06962663975782038},{"time":"2022-12-30","value":0.07571131158917419},{"time":"2023-12-30","value":0.09063000533902829}],"Assets":[{"time":"2014-12-30","value":3305832000},{"time":"2015-12-30","value":3926316000},{"time":"2016-12-30","value":21208000000},{"time":"2017-12-30","value":22742000000},{"time":"2018-12-30","value":22549000000},{"time":"2019-12-30","value":23251000000},{"time":"2020-12-30","value":24564000000},{"time":"2021-12-30","value":24689000000},{"time":"2022-12-30","value":25337000000},{"time":"2023-12-30","value":26681000000}],"Stockholders Equity":[{"time":"2014-12-30","value":-704012000},{"time":"2015-12-30","value":-335681000},{"time":"2016-12-30","value":8860000000},{"time":"2017-12-30","value":8358000000},{"time":"2018-12-30","value":6954000000},{"time":"2019-12-30","value":6263000000},{"time":"2020-12-30","value":6280000000},{"time":"2021-12-30","value":6042000000},{"time":"2022-12-30","value":5765000000},{"time":"2023-12-30","value":6112000000}],"ROE":[{"time":"2014-12-30","value":-0.5062172235700528},{"time":"2015-12-30","value":-1.1534909631465589},{"time":"2016-12-30","value":0.012979683972911963},{"time":"2017-12-30","value":0.15661641541038526},{"time":"2018-12-30","value":0.03724475122231809},{"time":"2019-12-30","value":0.030496567140348076},{"time":"2020-12-30","value":0.044426751592356685},{"time":"2021-12-30","value":0.15988083416087387},{"time":"2022-12-30","value":0.18924544666088464},{"time":"2023-12-30","value":0.22218586387434555}],"ROA":[{"time":"2014-12-30","value":0.1785904425875241},{"time":"2015-12-30","value":0.16468669358248292},{"time":"2016-12-30","value":0.03027159562429272},{"time":"2017-12-30","value":0.031615513147480435},{"time":"2018-12-30","value":0.03290611557053528},{"time":"2019-12-30","value":0.03436411337146789},{"time":"2020-12-30","value":0.03212017586712262},{"time":"2021-12-30","value":0.06087731378346632},{"time":"2022-12-30","value":0.07100288116193709},{"time":"2023-12-30","value":0.07986957010606799}]}

IQVIA Holdings Inc. engages in the provision of 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. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; strategic planning and design services; and decentralized clinical trials, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was incorporated in 2016 and is headquartered in Durham, North Carolina.

Sector

10-Q
9/30/23
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10-K
12/31/22
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12/31/19
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3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Iqvia Holdings Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.624B	$1.953B	$2.315B	$2.706B	$3.116B	$3.536B	$3.952B	$4.351B	$4.716B	$5.031B	$5.283B	$52.83B
DCF		$1.698B	$1.751B	$1.779B	$1.782B	$1.758B	$1.709B	$1.636B	$1.542B	$1.43B	$1.306B	$13.06B
Value	$29.45B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 20%

Earnings Stability 27%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	6.7%	1.7%	13%	2.5%	1.7%	2.5%	7%	7.6%	9.1%	9%
ROA	16%	3%	3.2%	3.3%	3.4%	3.2%	6.1%	7.1%	8%	8%
ROE	-120%	1.3%	16%	3.7%	3%	4.4%	16%	19%	22%	21%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.04%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.57%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.19%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.07%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.39%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.33%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	6.42	10.50	17.26	14.03	14.14	9.49	5.33	8.16	9.65	8.82
Debt Equity	-7.59	0.83	1.24	1.60	1.88	2.03	2.03	2.25	2.37	2.26
MIN
Graham Stability	-	-	100%	43%	34%	48%	100%	100%	100%	34%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 8.82.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.26.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.34.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	12%	7.6%	9.7%	4%	-1.6%
Net Income	42%	39%	69%	24%	-19%
Stockholders Equity	-5.2%	-2.5%	-0.9%	6%	2.3%
FCF	12%	14%	3.8%	-5.4%	-3.3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.55%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.6%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +39.29%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -19.08%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -2.55%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.34%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +13.54%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -3.28%.