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 $238.6, IQVIA Holdings Inc has witnessed a daily loss of 1.19%, marked against a three-month change of 16.51%. 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
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability rank and an exceptional growth rank, IQVIA Holdings Inc demonstrates strong potential. However, its financial strength rank is moderate, indicating room for improvement. GuruFocus assigned IQVIA Holdings Inc the GF Score of 94 out of 100, which signals the highest outperformance potential.
Understanding IQVIA Holdings Inc Business
IQVIA Holdings Inc, with a market cap of $43.31 billion and sales of $14.98 billion, is a testament to the successful merger of Quintiles and IMS Health in 2016. The company's operating margin stands at a healthy 13.76%. IQVIA operates primarily in two segments: Research & Development, which provides outsourced late-stage clinical trials, and Technology & Analytics, offering data and analytics services to the healthcare industry. The company's diverse portfolio also includes a small contract sales business, positioning it as a multifaceted player in the healthcare data and analytics space.
Profitability Rank Breakdown
The Profitability Rank of IQVIA Holdings Inc is a strong indicator of 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, climbing from 7.68% in 2019 to 13.76% in 2023. This upward trend is mirrored in the company's Gross Margin, which has also shown consistent growth, reaching 34.96% in 2023. These figures highlight IQVIA Holdings Inc's growing efficiency in converting revenue into profit.
The company's financial health is further reinforced by a solid Piotroski F-Score, which evaluates profitability, funding, and operating efficiency. Additionally, IQVIA Holdings Inc's Predictability Rank of 4.0 stars out of five reflects its consistent operational performance, instilling 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 11.4% surpasses 54.82% of competitors in the Medical Diagnostics & Research industry. The company's EBITDA has also experienced a robust increase, with a three-year growth rate of 18 and a five-year rate of 14.8, highlighting its ability to sustain growth and profitability.
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 initiatives, competitive position, and management team further bolster its prospects for sustained success. Investors seeking to capitalize on such promising opportunities can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus Premium services.
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.
