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 $240.31, IQVIA Holdings Inc has witnessed a daily gain of 0.71%, marked against a three-month change of 13.83%. 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: 10/10
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 Growth rank and Momentum rank, and a slightly lower Financial strength rank, 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 $43.74 billion and sales of $14.98 billion, is a powerhouse in the healthcare data and analytics sector. The company, born from the 2016 merger of Quintiles and IMS Health, operates primarily through its Research & Development segment, which provides outsourced late-stage clinical trials for pharmaceutical, device, and diagnostic firms. Its technology and analytics segment offers aggregated information and technology services to clients in the healthcare industry, including pharmaceutical companies, providers, payers, and policymakers. Additionally, IQVIA Holdings Inc boasts data and analytics capabilities for clinical trials, including virtual trials, and maintains a small contract sales business. With an operating margin of 13.76%, the company demonstrates strong profitability and operational efficiency.
Profitability Rank Breakdown
The Profitability Rank reflects IQVIA Holdings Inc's impressive ability to generate profit relative 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 growth indicates a consistent improvement in the company's efficiency in converting revenue into profit.
Similarly, IQVIA Holdings Inc's Gross Margin has also shown a steady rise, reaching 34.96% in 2023. This trend highlights the company's enhanced capability in maintaining profitability despite varying market conditions. The Piotroski F-Score further confirms IQVIA Holdings Inc's solid financial situation, while its Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
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% outperforms 59.7% of companies in the Medical Diagnostics & Research industry. Additionally, the company's EBITDA has experienced a robust increase, with a three-year growth rate of 18 and a five-year rate of 14.8, highlighting its ongoing ability to drive 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 solidify its status as a compelling investment opportunity. Investors seeking to capitalize on such high-performing stocks can explore more companies with strong GF Scores using the GF Score Screen provided by GuruFocus Premium services. With a GF Score of 94, IQVIA Holdings Inc stands as a testament to the predictive power of this comprehensive scoring system, indicating a bright future for the company and its shareholders.
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.
