Premier (PINC) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 3.62%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.30
• Revenue Growth: -17.69%
• EPS Growth: -10.24%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.44
• Shares Outstanding: 82,342,440
• 10 Day Avg. Volume: 1,635,051
• 30 Day Avg. Volume: 1,490,622
• PEG Ratio: 4.36
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.83
• Price Target Upside: -5.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $26.00 ▲(12.46%Upside)

Premier's overall stock score of 76 reflects a mix of strong technical momentum and positive strategic initiatives, despite challenges in financial performance. The company's efforts to enhance shareholder value through stock repurchase programs and strategic partnerships bolster investor confidence. However, high valuation and operational challenges remain areas to watch.

Positive Factors

Financial Performance

Premier reported a F3Q beat and lifted FY25 Adj EBITDA guidance modestly.

Growth Opportunities

The company is refocusing capital toward growth opportunities in areas that can leverage PINC’s data advantage such as clinical decision making.

Shareholder Returns

PINC rewards shareholders with a 3.7% dividend yield and another $200M share repurchase under its $1B authorization.

Negative Factors

Consulting Services Demand

Quarterly performance was negatively impacted by lower demand in consulting services as well as unfavorable product mix.

Fee Revenue Decline

Net GPO admin fee revenue declined 10% y/y as the negotiated increases in the share to its hospital members more than offset growth in gross admin fee revenue.

Performance Services Challenges

Performance Services results were an area of weakness in the quarter, with lower guidance also showing the challenges in the business currently.

Premier Business Overview & Revenue Model

Company Description

Premier, Inc. (PINC) is a leading healthcare improvement company, uniting an alliance of approximately 4,400 U.S. hospitals and health systems and more than 250,000 other providers and organizations. The company operates through two main segments: Supply Chain Services and Performance Services. Supply Chain Services offers group purchasing services and supply chain co-management, while Performance Services provides a suite of data analytics, consulting, and other services aimed at improving clinical outcomes and operational efficiency.

How the Company Makes Money

Premier, Inc. generates revenue primarily through its group purchasing organization (GPO) and performance services. The GPO aggregates purchasing volume from member hospitals and healthcare providers to negotiate discounts with manufacturers, earning fees based on the volume of products purchased. Additionally, the company offers supply chain co-management solutions that contribute to its revenue. In the Performance Services segment, Premier provides subscription-based data analytics and consulting services that help healthcare providers enhance quality, safety, and cost management, further adding to its earnings. Strategic partnerships, alliances, and technology-driven solutions also play a crucial role in the company's revenue generation.

Premier Financial Statement Overview

Summary

Premier's financial performance shows a mixed picture. Despite recent profitability challenges indicated by the income statement, the balance sheet remains robust with low leverage and a strong equity position. Cash flow generation is a bright spot, reflecting financial resilience even amidst declining revenues. The company needs to focus on revenue stabilization and cost management to enhance future performance.

Income Statement

The company has shown a declining revenue trend over the past years, with a significant drop in TTM revenue compared to prior years. The gross profit margin has remained relatively stable, but the net profit margin has turned negative in the TTM, indicating recent profitability challenges. However, the company previously maintained positive EBIT and EBITDA margins, showing potential for operational improvements.

Balance Sheet

The balance sheet shows a strong equity position with a favorable debt-to-equity ratio. The company has reduced total debt significantly over the past few years, which enhances financial stability. The equity ratio is healthy, reflecting a solid asset base funded by equity. However, the reduction in stockholders' equity in the TTM could be a concern if it continues.

Cash Flow

The company has consistently generated positive operating cash flow, with a strong operating cash flow to net income ratio, especially in the TTM. Free cash flow remains robust, although the growth rate has fluctuated. The ability to maintain strong cash flows amidst declining revenues is a positive sign of financial resilience.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.18B	1.35B	1.34B	1.43B	1.72B	1.30B
	Gross Profit
785.70M	888.01M	896.29M	885.04M	837.33M	866.80M
	EBIT
-32.49M	127.97M	242.09M	260.07M	256.92M	373.62M
	EBITDA
83.50M	278.79M	398.26M	467.15M	383.67M	547.83M
	Net Income Common Stockholders
-4.75M	119.54M	175.03M	265.87M	287.52M	291.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
137.51M	125.15M	89.79M	86.14M	129.14M	99.30M
	Total Assets
2.68B	3.40B	3.37B	3.36B	3.52B	2.95B
	Total Debt
158.23M	113.70M	440.33M	487.29M	521.67M	137.19M
	Net Debt
20.72M	-11.45M	350.54M	401.14M	392.53M	37.89M
	Total Liabilities
3.29B	1.44B	1.04B	1.11B	1.29B	2.81B
	Stockholders Equity
-601.71M	1.96B	2.33B	2.25B	2.23B	139.26M
Cash Flow		Free Cash Flow
368.50M	215.37M	362.24M	356.79M	318.53M	255.13M
	Operating Cash Flow
440.50M	296.56M	444.54M	444.23M	407.40M	349.52M
	Investing Cash Flow
-59.27M	-68.47M	-273.62M	-139.44M	-174.57M	-222.32M
	Financing Cash Flow
-666.39M	-192.72M	-167.27M	-347.79M	-203.00M	-168.95M

Premier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PINC, the sentiment is Positive. The current price of 23.12 is above the 20-day moving average (MA) of 22.86, above the 50-day MA of 20.95, and above the 200-day MA of 20.19, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 69.94 is Neutral, neither overbought nor oversold. The STOCH value of 61.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PINC.

Premier Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINC	76 Outperform	$1.91B	40.50	6.05%	3.62%	-17.69%	-10.24%
OMCL	67 Neutral	$1.47B	67.94	1.73%	―	3.00%	―
GDRX	62 Neutral	$1.43B	56.80	4.43%	―	4.35%	―
EVH	54 Neutral	$952.11M	―	-10.99%	―	10.24%	2.63%
DH	54 Neutral	$520.97M	―	-86.36%	―	-3.04%	-152.59%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
SOPH	53 Neutral	$203.83M	―	-60.75%	―	4.66%	11.33%

Premier Corporate Events

Premier Reports Q3 2025 Financial Results Improvement

On May 6, 2025, Premier, Inc. announced its financial results for the third quarter of fiscal year 2025, which ended on March 31, 2025. The company reported a total net revenue of $261.4 million, a 9% decrease from the previous year but a 9% increase from the previous quarter. Net income from continuing operations was $27.6 million, a significant improvement from a net loss in the same period last year. Despite a decrease in adjusted EBITDA and EPS compared to the prior year, both metrics showed substantial growth from the second quarter of fiscal 2025. The company attributed its sequential revenue and profitability growth to better-than-expected performance in its Supply Chain Services segment. Premier also increased its adjusted EBITDA and EPS guidance while reaffirming its revenue guidance midpoint, highlighting the positive impact of its share repurchase program.