IQVIA Holdings Inc (IQV, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $239.35, IQVIA Holdings Inc has witnessed a daily loss of 1.69%, marked against a three-month change of 21.44%. A thorough analysis, underlined by the GF Score, suggests that IQVIA Holdings Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 8/10
With a high Growth rank and a solid Profitability rank, IQVIA Holdings Inc demonstrates its capacity for sustained expansion and efficient profit generation. Although its Financial strength rank is moderate, the company's overall performance is commendable. GuruFocus assigned IQVIA Holdings Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding IQVIA Holdings Inc Business
IQVIA Holdings Inc, with a market cap of $43.44 billion and sales of $14.86 billion, is a powerhouse in the healthcare data and analytics sector. The company was formed from the 2016 merger of Quintiles, a global contract research organization, and IMS Health, a leading healthcare data provider. IQVIA operates primarily through two segments: Research & Development, which focuses on late-stage clinical trials, and Technology & Analytics, which offers data services and analytics capabilities for clinical trials, including virtual trials. Additionally, IQVIA has a smaller contract sales business.
Profitability Rank Breakdown
The Profitability Rank of IQVIA Holdings Inc is a testament to its superior ability to generate profits compared to its peers. The company's Operating Margin has seen a significant increase over the past five years, with figures rising from 7.68% in 2019 to 12.26% in 2023. This growth in operating margin reflects the company's improving efficiency and profitability.
IQVIA Holdings Inc's financial health is further reinforced by its Piotroski F-Score, which is based on a nine-point scale evaluating profitability, funding, and operating efficiency. Additionally, the company's Predictability Rank of 3.5 stars out of five indicates a consistent operational performance, instilling greater confidence in investors.
Growth Rank Breakdown
IQVIA Holdings Inc's high Growth rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 10.8% surpasses 52.79% of companies in the Medical Diagnostics & Research industry. Furthermore, IQVIA Holdings Inc has demonstrated a robust increase in EBITDA over the past few years, with a three-year growth rate of 15 and a five-year growth rate of 15.4, highlighting its sustained growth capabilities.
Next Steps
Considering IQVIA Holdings Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic focus on expanding its core segments, coupled with its ability to efficiently generate profits, positions it favorably for future success. Investors seeking to capitalize on such promising prospects can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
