Icon PLC (ICLR, Financial) is a global provider of outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries. The company operates within the Medical Diagnostics & Research industry. As of July 25, 2023, Icon PLC's stock price stands at $251, with a market capitalization of $20.56 billion. The stock has seen a gain of 3.45% today and an impressive 11.20% over the past four weeks.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest rank. The five key aspects considered in the GF Score are Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked and the ranks also have positive correlation with the long term performances of stocks.
Icon PLC's GF Score Analysis
Icon PLC boasts a high GF Score of 95 out of 100, indicating its highest outperformance potential. This score places Icon PLC in the top tier of stocks in terms of future performance potential. When compared to its competitors in the same industry, Icon PLC outperforms Exact Sciences Corp (GF Score: 70), Laboratory Corp of America Holdings (GF Score: 93), and Quest Diagnostics Inc (GF Score: 87).
Financial Strength Analysis of Icon PLC
The Financial Strength rank measures how strong a company's financial situation is. Icon PLC's Financial Strength rank is 5 out of 10. This score is based on its interest coverage of 3.65, a debt to revenue ratio of 0.59, and an Altman Z score of 2.19. These figures suggest that Icon PLC has a moderate level of financial strength.
Profitability Rank Analysis of Icon PLC
The Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. Icon PLC's Profitability Rank is 9 out of 10, indicating high profitability. This is based on its Operating Margin of 11.73%, a Piotroski F-Score of 7, and a consistency of profitability for the past 10 years.
Growth Rank Analysis of Icon PLC
The Growth Rank measures the growth of a company in terms of its revenue and profitability. Icon PLC's Growth Rank is 10 out of 10, indicating strong growth potential. This is based on its 5-year revenue growth rate of 22.10%, and a 3-year revenue growth rate of 22.00%.
GF Value Rank Analysis of Icon PLC
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. Icon PLC's GF Value Rank is 10 out of 10, indicating that the stock is undervalued.
Momentum Rank Analysis of Icon PLC
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. Icon PLC's Momentum Rank is 8 out of 10, suggesting that the stock has strong momentum.
Conclusion
In conclusion, Icon PLC presents a compelling investment opportunity based on its high GF Score and its components. The company's strong profitability, growth potential, and momentum, coupled with its undervaluation and moderate financial strength, make it a promising pick for value investors. However, as with any investment, it's crucial to conduct thorough research and consider the company's overall financial health and market conditions before making an investment decision.
