Stocks analysis

Analysis for IQV

$271.04 +9.03 (+3.45%)
  • 📈 Growth — 8/30
  • 💰 Profitability — 11/20
  • 🏦 Financial Health — 8/20
  • 💵 Valuation — 9/20
  • ⚠️ Risk — 8/10
Overall Score: 38/100

Summary:


📈 Growth & Financial Trajectory

Over the 7 quarters from 2024 Q4 to 2026 Q2, IQVIA's revenues rose from about $3.90B to $4.37B, a roughly 12% increase. However, net income declined from about $437M to $258M, a drop near 41%, signaling margin compression even as top-line growth persisted. The trend shows improving cash generation but weakening net profitability in later periods, with revenue gains insufficient to offset higher costs.

💰 Margins & Cash Flow

Gross margins are in the low-to-mid 20s, while operating margins have trended from the 16% range in 2024 to around 12% in 2025–2026, indicating some operating leverage pressure. Operating cash flow remained positive across periods, with notable quarterly cash from operations near $0.44B–$0.91B. Investing cash flow was negative in several periods, reflecting capex and investments. Overall, cash flow from operations supports liquidity but cash usage in investing and financing is nontrivial.

🛡️ Balance Sheet & Liquidity

Total assets around $29–$30B and liabilities around $23–$24B with equity near $6–$6.3B. The debt-to-equity ratio is elevated (roughly 3.7x), and current ratio historically under 1x in several periods, signaling liquidity constraints. Nonetheless, operating cash flow remains positive, lending resilience.

⚠️ Key Drivers & Risks

  • Drivers: AI/Data analytics demand in life sciences and large-scale healthcare data processing.
  • Risks: Leverage and liquidity risk; revenue growth sensitivity to client renewals and regulatory changes.

📊 Key Financial Fundamentals

Valuation Multiples
Market Cap $44.25B
P/E Ratio 32.18
Forward P/E 20.78
P/S Ratio 2.61
P/B Ratio 5.23
EV / EBITDA 17.27
Profitability & Returns
Gross Margin 32.97%
Operating Margin 12.92%
Net Margin 8.10%
ROE 21.95%
ROIC 6.28%
Financial Health & Liquidity
Current Ratio 0.71
Quick Ratio 0.68
Financial Scale & Cash Flow
Revenue $16.98B
Net Income $1.38B
FCF Yield 4.94%
Free Cash Flow $2.18B
Total Debt To Equity 2.59