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IQVIA Holdings Inc (IQV)
NYSE:IQV
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IQVIA Holdings
(NYSE:IQV)
72Outperform
Positive Factors
AI Integration
IQV's initiatives to incorporate AI to enhance all aspects of its operations and products have shown positive results, winning contracts with customers.
Earnings Diversification
IQV's earnings diversification, with 45% of earnings coming from TAS, a segment seeing a rebound in demand and driving margin recovery.
Market Exposure
IQV's broader exposure to the market is expected to allow it to be less impacted by overall macro pressures compared to peers.
Negative Factors
Cancellation Rates
Still-elevated cancellation rates are further evidence that the expected recovery in clinical trial demand is not going to be linear.
R&D Growth Challenges
RDS business will likely be impacted by challenging conditions, including slower R&D growth among top 20 pharma and subdued biotech activity.
Tariff Impacts
Potential tariffs on pharma imports could lead IQV clients to pull back on discretionary spending, impacting a significant portion of the company's revenue.
IQVIA Holdings (IQV) vs. S&P 500 (SPY)
Market Cap
$26.50B
Dividend YieldN/A
Average Volume (3M)2.07M
Price to Earnings (P/E)20.0
Beta (1Y)0.95
Revenue Growth2.95%
EPS Growth2.46%
CountryUS
Employees88,000
SectorHealthcare
Sector Strength69
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)7.50
Shares Outstanding176,315,030
10 Day Avg. Volume2,169,257
30 Day Avg. Volume2,074,989
Financial Highlights & Ratios
PEG Ratio8.13
Price to Book (P/B)N/A
Price to Sales (P/S)2.12
Price to Cash Flow (P/CF)9.30
P/FCF Ratio8.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$212.75Price Target Upside41.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
IQVIA Holdings Business Overview & Revenue Model
Company DescriptionIQVIA Holdings Inc. provides advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients' outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; virtual trials; and strategic planning and design services, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company has a strategic collaboration with HealthCore, Inc. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was founded in 1982 and is headquartered in Durham, North Carolina.
How the Company Makes MoneyIQVIA makes money primarily through a diversified revenue model that includes the provision of technology solutions, data analytics, and contract research services. Key revenue streams include clinical development services, which involve managing and conducting clinical trials for pharmaceutical and biotech companies. Another significant source of revenue is their technology and analytics solutions, which provide clients with data-driven insights and software to optimize their operations. Additionally, IQVIA earns revenue from real-world insights services, which use healthcare data to inform business and clinical decisions. The company's strategic partnerships with life sciences companies and healthcare providers further bolster its revenue by expanding its service offerings and market reach.
IQVIA Holdings Financial Statement Overview
Summary
IQVIA Holdings shows strong financial health with consistent revenue and profit growth, effective debt management, and robust cash flow generation, positioning the company well for future growth despite the need for continued attention to debt levels.Income Statement
IQVIA Holdings has demonstrated strong revenue growth with a consistent upward trend from $11.09 billion in 2019 to $15.41 billion in 2024. The gross profit margin remains robust at approximately 34.9% in 2024. The net profit margin has improved to 8.9%, reflecting enhanced operational efficiency. EBIT and EBITDA margins are healthy, indicating effective cost management and operational leverage.85
Very Positive
Balance Sheet
The debt-to-equity ratio shows a significant reduction in total debt from 2023 to 2024, improving the company’s leverage position. The equity ratio stands at 22.6%, providing a reasonable cushion against liabilities. Return on equity is strong, reflecting the company’s capability to generate returns on shareholders’ investments.78
Positive
Cash Flow
IQVIA Holdings has demonstrated excellent free cash flow generation, with a free cash flow of $2.72 billion in 2024, a significant increase from previous years. The operating cash flow to net income ratio indicates a strong ability to convert net income into cash. Despite capital expenditures, free cash flow remains robust, supporting further investment and debt reduction.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 15.40B | 14.98B | 14.41B | 13.87B | 11.36B | Gross Profit |
| 5.38B | 5.24B | 5.03B | 4.64B | 3.86B | EBIT |
| 2.20B | 1.98B | 1.80B | 1.39B | 731.00M | EBITDA |
| 3.45B | 3.30B | 2.89B | 2.75B | 2.06B | Net Income Common Stockholders |
| 1.37B | 1.36B | 1.09B | 966.00M | 279.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.70B | 1.50B | 1.31B | 1.48B | 1.90B | Total Assets |
| 26.90B | 26.68B | 25.34B | 24.69B | 24.56B | Total Debt |
| 1.32B | 14.23B | 13.01B | 12.44B | 12.90B | Net Debt |
| -384.00M | 12.86B | 11.79B | 11.07B | 11.09B | Total Liabilities |
| 20.83B | 20.57B | 19.57B | 18.65B | 18.28B | Stockholders Equity |
| 6.07B | 6.11B | 5.76B | 6.04B | 6.00B |
| Cash Flow | Free Cash Flow | |||
| 2.72B | 1.50B | 1.59B | 2.30B | 1.34B | Operating Cash Flow |
| 2.72B | 2.15B | 2.26B | 2.94B | 1.96B | Investing Cash Flow |
| -1.44B | -1.60B | -2.01B | -2.10B | -796.00M | Financing Cash Flow |
| -878.00M | -382.00M | -329.00M | -1.24B | -217.00M |
IQVIA Holdings Technical Analysis
Negative
150.28
Price Trends
174.39
Negative
187.62
Negative
208.64
Negative
Market Momentum
-8.69
Negative
40.84
Neutral
71.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQV, the sentiment is Negative. The current price of 150.28 is below the 20-day moving average (MA) of 154.51, below the 50-day MA of 174.39, and below the 200-day MA of 208.64, indicating a bearish trend. The MACD of -8.69 indicates Negative momentum. The RSI at 40.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQV.
IQVIA Holdings Risk Analysis
IQVIA Holdings disclosed 51 risk factors in its most recent earnings report. IQVIA Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IQVIA Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $19.40B | 22.23 | 13.35% | 1.73% | 9.38% | 6.43% | |
73 Outperform | $11.71B | 15.20 | 8.44% | ― | 1.99% | 28.86% | |
72 Outperform | $26.50B | 20.05 | 22.55% | ― | 2.95% | 2.46% | |
69 Neutral | $8.58B | 22.78 | 65.82% | ― | 9.87% | 32.81% | |
67 Neutral | $141.09B | 38.10 | 7.22% | 0.57% | -9.19% | -12.75% | |
56 Neutral | $11.33B | 39.50 | 3.64% | 0.30% | 0.16% | -57.72% | |
51 Neutral | $5.32B | 3.41 | -40.36% | 2.89% | 17.93% | 2.52% |
* Healthcare Sector Average
Performance Comparison
IQV
IQVIA Holdings
150.28
-85.20
-36.18%
DHR
Danaher
197.14
-48.51
-19.75%
ICLR
Icon
144.96
-159.18
-52.34%
RVTY
Revvity
94.29
-10.46
-9.99%
DGX
Quest Diagnostics
173.76
37.03
27.08%
MEDP
Medpace Holdings
298.55
-101.66
-25.40%
IQVIA Holdings Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -26.85% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
IQVIA delivered strong results in 2024, with notable achievements in revenue and strategic partnerships, alongside advancements in AI and global health initiatives. However, the significant cancellations and challenging macroeconomic conditions posed considerable hurdles. The outlook remains cautiously optimistic with expected volatility in some segments.Highlights
Solid Full Year Results
IQVIA achieved 5.5% revenue growth at constant currency excluding COVID revenue step down, adjusted diluted EPS growth over 9%, and free cash flow of $2.1 billion, representing a 41% increase.
Strong Operational Performance in Q4
Q4 revenue came in above the high end of guidance with about 4.5% growth excluding foreign exchange and COVID-related work. Adjusted diluted EPS grew nearly 10%, and the quarter achieved a record free cash flow.
Successful Strategic Renewals
IQVIA renewed all large pharma strategic partnerships, expanded existing partnerships, and secured new contracts, positioning the business for future growth.
Advancements in Global Health
IQVIA collaborated with organizations like the World Health Organization to control virus outbreaks, demonstrating its role as a key public health partner.
AI and Digital Innovations
Introduced 60 innovations in 2024, including 39 AI-enabled applications, and expanded digital business into Europe, doubling integrated websites and partners.
Biotech Funding and Pipeline Growth
Biotech funding exceeded $100 billion, a 44% increase from 2023, and the qualified pipeline showed positive growth across all segments.
Lowlights
Significant Cancellations in 2024
2024 experienced nearly 50% higher cancellations than the average of the previous three years, with Q4 cancellations close to double the usual quarterly average.
Challenging Macroeconomic Environment
Faced significant challenges from the Inflation Reduction Act, geopolitical unrest, high interest rates, inflation, and foreign currency headwinds.
Volatility in R&DS Demand
Continued volatility expected in R&DS demand with elevated cancellations, attributed to large pharma's portfolio reprioritizations.
Company Guidance
During the IQVIA fourth quarter 2024 earnings call, the company reported solid financial performance despite challenging market conditions. The company achieved a 5.5% revenue growth at constant currency excluding COVID-related revenues, adjusted diluted earnings per share increased by over 9%, and free cash flow reached $2.1 billion, representing a 41% growth from the previous year. In the fourth quarter alone, the revenue grew by 2.3% on a reported basis and 3% at constant currency, with adjusted diluted earnings per share increasing by 9.9% to $3.12. The R&D Solutions segment experienced net new bookings of over $2.5 billion, and the backlog at year-end stood at $31.1 billion, a 5.5% increase at constant currency compared to the previous year. Additionally, IQVIA reaffirmed its 2025 guidance, anticipating revenue growth of 4% to 7% at constant currency excluding COVID-related impacts, adjusted EBITDA margin expansion of up to 20 basis points, and adjusted diluted earnings per share growth of 5% to 9%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.