IQVIA Holdings (IQV) AI Stock Analysis

912 Followers

Top Page

IQVIA Holdings

(NYSE:IQV)

70Outperform

IQVIA demonstrates robust financial performance and strategic advancements, yet faces challenges from increased cancellations and a bearish technical outlook. The stock's valuation is moderate, but its growth potential is supported by strong operational results and strategic partnerships, leading to a cautiously optimistic overall stock score.

Positive Factors

Earnings

The highlight of the quarter was a book-to-bill (1.20x) that was much stronger than expectations.

Financial Performance

The company's free cash flow was solid, with a full-year increase of 41% year over year.

Technology & Analytics Solutions (TAS)

TAS is expected to experience continued strength, driven by real-world evidence, contributing positively to revenue growth.

Negative Factors

Cancellations

Still-elevated cancellation rates are further evidence that the expected recovery in clinical trial demand is not going to be linear.

Market Growth Outlook

The outlook for market growth is structurally lower by an estimated 100-200 basis points, indicating a decelerating growth outlook.

Revenue Growth

RDS revenue growth is expected to be flat in the first half due to elevated cancellations, indicating short-term challenges.

IQVIA Holdings (IQV) vs. S&P 500 (SPY)

Market Cap

$27.28B

Dividend YieldN/A

Average Volume (3M)1.62M

Price to Earnings (P/E)20.6

Beta (1Y)1.10

Revenue Growth2.95%

EPS Growth2.46%

CountryUS

Employees88,000

SectorHealthcare

Sector Strength77

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)7.50

Shares Outstanding176,315,030

10 Day Avg. Volume1,702,714

30 Day Avg. Volume1,621,732

Financial Highlights & Ratios

PEG Ratio8.37

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

$242.42

Price Target Upside56.67% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price154.73

Price Trends

50DMA

189.91

Negative

100DMA

195.33

Negative

200DMA

213.08

Negative

Market Momentum

MACD

-4.33

Positive

RSI

29.20

Positive

STOCH

17.78

Positive

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 154.73 is below the 20-day moving average (MA) of 180.17, below the 50-day MA of 189.91, and below the 200-day MA of 213.08, indicating a bearish trend. The MACD of -4.33 indicates Positive momentum. The RSI at 29.20 is Positive, neither overbought nor oversold. The STOCH value of 17.78 is Positive, 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 (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICLR	81 Outperform	$12.41B	16.12	8.44%	―	1.99%	28.86%
DGX	76 Outperform	$18.22B	21.42	13.24%	1.83%	6.70%	2.56%
MEDP	73 Outperform	$8.68B	22.72	58.41%	―	11.84%	42.04%
IQV	70 Outperform	$27.28B	20.64	22.55%	―	2.95%	2.46%
DHR	65 Neutral	$130.05B	34.37	7.57%	0.62%	-13.50%	-17.25%
RVTY	57 Neutral	$11.39B	39.38	3.64%	0.29%	0.16%	-57.72%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%

* Healthcare Sector Average

Performance Comparison

IQV

IQVIA Holdings

154.73

-86.77

-35.93%

DHR

Danaher

181.77

-61.32

-25.23%

ICLR

Icon

153.72

-167.24

-52.11%

RVTY

Revvity

94.84

-11.30

-10.65%

DGX

Quest Diagnostics

164.18

36.10

28.19%

MEDP

Medpace Holdings

287.11

-121.60

-29.75%

IQVIA Holdings Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -24.68% | Next Earnings Date: Apr 30, 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.