Icon PLC (ICLR, Financial), a leading player in the Medical Diagnostics & Research industry, has been making waves in the stock market. As of July 28, 2023, the company's stock price stands at $250.57, with a market cap of $20.58 billion. The stock has seen a gain of 3.7% today and a 4.54% increase over the past four weeks. But what makes Icon PLC a compelling investment? Let's delve into the company's GF Score and its components to find out.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five key aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. These aspects include Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. The GF Score ranges from 0 to 100, with 100 as the highest rank. Stocks with a higher GF Score generally generate higher returns than those with lower GF Scores.
Icon PLC's Impressive GF Score
Icon PLC boasts a GF Score of 95 out of 100, placing it in the highest outperformance potential category. This score indicates that the company has a strong potential to outperform in the market. When compared to its competitors in the same industry, Icon PLC outshines Exact Sciences Corp (GF Score: 70), Laboratory Corp of America Holdings (GF Score: 93), and Quest Diagnostics Inc (GF Score: 87).
Financial Strength Analysis
The Financial Strength of Icon PLC is rated 5 out of 10. This score is based on the company's interest coverage of 3.34, a debt to revenue ratio of 0.56, and an Altman Z score of 2.27. These figures suggest that the company has a moderate level of financial strength.
Profitability Rank Analysis
Icon PLC's Profitability Rank is an impressive 9 out of 10. This high score is driven by an operating margin of 12.22%, a Piotroski F-Score of 6, and a consistent profitability record over the past 10 years. Despite a negative trend in the 5-year average operating margin, the company's overall profitability is strong.
Growth Rank Analysis
The company's Growth Rank stands at a perfect 10 out of 10, indicating robust growth in terms of revenue and profitability. The 5-year revenue growth rate is 22.10%, and the 3-year revenue growth rate is 22.00%, demonstrating consistent growth over time.
GF Value Rank and Momentum Rank Analysis
Icon PLC's GF Value Rank is 10 out of 10, suggesting that the stock is reasonably priced given its past returns, growth, and future business performance estimates. The company's Momentum Rank is 8 out of 10, indicating a strong momentum in its stock price.
Conclusion
In conclusion, Icon PLC presents a compelling investment opportunity, with a high GF Score and strong rankings in profitability, growth, value, and momentum. While its financial strength could be improved, the company's overall performance and potential for outperformance make it a stock to watch. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
