Icon (ICLR) AI Stock Analysis

• Market Cap: $12.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.99
• Revenue Growth: -2.91%
• EPS Growth: 12.92%
• Country: US
• Employees: 41,250
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.26
• Shares Outstanding: 77,772,130
• 10 Day Avg. Volume: 1,691,916
• 30 Day Avg. Volume: 1,486,796
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 6.61
• Enterprise Value/Ebitda: 9.59
• 1Y Price Target: $206.14
• Price Target Upside: 30.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $175.00 ▲(10.86% Upside)

Icon's overall stock score reflects strong financial performance and reasonable valuation. Technical indicators present mixed signals, with short-term weakness but medium-term support. The balanced sentiment from the earnings call, despite being excluded from the weighted calculation, suggests a stable outlook.

Positive Factors

Cost Management

Investments in automation and AI for optimizing manual processes have strengthened cost controls, which is a key management focus.

Financial Performance

ICLR delivered improved performance even against a higher bar.

Growth Opportunities

The expansion of large pharma partnerships alongside better results in the biotech space indicates continued growth opportunities.

Negative Factors

Booking Challenges

It is unclear whether bookings strength will continue into the second half.

Cancellation Concerns

Cancellations are still elevated, which may indicate challenges in the near term.

Market Volatility

ICLR's recent results have not been immune to market volatility, with the expectations for this Q fairly muted given potential revenue pressure and excess cancellations.

Icon Business Overview & Revenue Model

Company Description

ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services. The company's clinical development services also comprise medical imaging, clinical research and laboratory services, project management, site monitoring and management services, data management, biostatistics and programming, medical writing and publishing, medical affair, endpoint adjudication/data monitoring committees, pharmacovigilance, interactive response technologies, clinical supplies management, strategic regulatory, medical communication, and consulting and advisory services. It serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. The company was incorporated in 1990 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Icon (ICLR) generates revenue primarily through contracts with pharmaceutical, biotechnology, and medical device companies that seek to outsource their clinical research and development activities. The company's key revenue streams include fees for clinical trial management, data management, laboratory services, and consulting. These services help clients bring new drugs and medical devices to market more efficiently and cost-effectively. Icon also collaborates with various healthcare organizations and leverages technology-driven solutions to enhance its service offerings, which contributes to its earnings. Strategic partnerships and long-term service agreements with major pharmaceutical companies are significant factors that bolster Icon's revenue growth.

Icon Financial Statement Overview

Summary

Icon shows strong profitability with robust margins and efficient cash flow management. Despite a slight revenue decline, the company maintains a conservative leverage and effective asset utilization.

Income Statement

Icon's TTM results show a strong gross profit margin of 27.18%, indicating efficient cost management. The net profit margin of 9.26% is healthy for the industry, and EBIT and EBITDA margins of 13.24% and 18.73% respectively suggest solid operational efficiency. Despite a slight decline in revenue compared to the previous year, the company's profitability metrics remain robust, reflecting an overall stable performance.

Balance Sheet

The debt-to-equity ratio stands at 0.37, indicating a conservative leverage approach. Return on equity is a strong 7.98%, showcasing effective utilization of shareholders' funds. However, the equity ratio of 56.79% suggests a moderate reliance on debt, which is typical for the industry. The balance sheet is stable, but there is room for improvement in asset utilization.

Cash Flow

Icon demonstrates strong cash flow management with a free cash flow to net income ratio of 1.39, indicating excellent conversion of profits into cash. The operating cash flow to net income ratio of 1.62 further supports operational efficiency. A significant free cash flow growth rate of 3.51% showcases positive cash flow trends, despite a decrease in net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.28B	8.12B	7.74B	5.48B	2.80B
Gross Profit	2.44B	2.40B	2.21B	1.51B	808.03M
EBITDA	1.56B	1.52B	1.41B	739.43M	488.83M
Net Income	791.47M	612.34M	505.30M	153.19M	327.81M
Balance Sheet
Total Assets	16.88B	16.99B	17.19B	17.39B	3.44B
Cash, Cash Equivalents and Short-Term Investments	538.78M	380.06M	290.48M	753.92M	842.03M
Total Debt	3.60B	3.94B	4.83B	5.65B	433.61M
Total Liabilities	7.35B	7.75B	8.69B	9.32B	1.59B
Stockholders Equity	9.52B	9.24B	8.50B	8.07B	1.85B
Cash Flow
Free Cash Flow	1.12B	1.02B	421.15M	735.39M	543.67M
Operating Cash Flow	1.29B	1.16B	563.32M	829.14M	594.72M
Investing Cash Flow	-266.79M	-226.65M	-145.87M	-6.02B	-46.58M
Financing Cash Flow	-837.18M	-844.04M	-864.17M	5.11B	-235.02M

Icon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Negative. The current price of 157.85 is below the 20-day moving average (MA) of 163.36, above the 50-day MA of 151.35, and below the 200-day MA of 179.40, indicating a neutral trend. The MACD of 3.99 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 5.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICLR.

Icon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDP	78 Outperform	$12.09B	31.89	89.38%	―	9.94%	25.30%
ICLR	75 Outperform	$12.09B	16.22	8.30%	―	-2.91%	12.92%
IQV	72 Outperform	$30.17B	25.92	19.80%	―	3.53%	-10.72%
DGX	70 Neutral	$19.35B	20.69	13.65%	1.78%	12.58%	13.00%
CRL	65 Neutral	$7.38B	449.94	-1.96%	―	-1.21%	-115.44%
RVTY	63 Neutral	$9.97B	36.45	3.61%	0.32%	3.33%	―
Sector *	47 Neutral	C$189.96M	-2.29	-23.77%	3.17%	17.52%	2.16%