Premier (PINC) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: 2.97%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -21.26%
• EPS Growth: -119.34%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.30
• Shares Outstanding: 66,437,000
• 10 Day Avg. Volume: 1,854,498
• 30 Day Avg. Volume: 2,072,928
• PEG Ratio: -1.25
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 6.28
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 14.45
• 1Y Price Target: $28.25
• Price Target Upside: -0.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $29.00 ▲(2.62% Upside)

Premier's overall stock score is driven by its strong technical indicators and stable balance sheet, despite challenges in financial performance and valuation concerns. The acquisition provides a potential upside, but legal proceedings introduce some risk.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides Premier with financial stability and flexibility to invest in growth opportunities.

Acquisition by Patient Square Capital

The acquisition by Patient Square Capital can enhance Premier's financial flexibility and provide resources for innovation, potentially improving market position.

Supply Chain Services

Premier's strong position in supply chain services helps hospitals optimize purchasing, providing a durable revenue stream and competitive advantage.

Negative Factors

Declining Revenue

A significant revenue decline of 80.4% indicates operational challenges, which could impact long-term growth and market competitiveness.

Profitability Issues

Negative profitability highlights operational inefficiencies, which may hinder Premier's ability to reinvest in business growth and innovation.

Cash Flow Weakness

Weak cash flow generation limits Premier's ability to fund operations and strategic initiatives, potentially affecting long-term sustainability.

Premier Business Overview & Revenue Model

Company Description

Premier Inc. (PINC) is a healthcare improvement company that collaborates with hospitals and healthcare providers to enhance patient care and reduce costs. Operating primarily in the healthcare sector, Premier provides a range of services including supply chain management, data analytics, and clinical performance improvement initiatives. The company leverages its extensive network of healthcare providers to deliver insights and solutions that drive operational efficiency and quality in patient care.

How the Company Makes Money

Premier generates revenue through a diversified model that includes membership fees from healthcare providers, performance-based incentive programs, and consulting services. A significant portion of its income comes from its supply chain services, where it helps hospitals and healthcare systems optimize their purchasing processes and reduce costs through group purchasing agreements. Additionally, Premier earns revenue from its data analytics services, providing hospitals with valuable insights that improve clinical outcomes and operational efficiencies. The company also engages in partnerships with various healthcare organizations and technology firms, enhancing its service offerings and expanding its market reach, which further contributes to its revenue streams.

Premier Financial Statement Overview

Summary

Premier faces challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet remains strong with low leverage, providing financial stability. Cash flow generation shows some weaknesses, necessitating strategic improvements to enhance cash conversion and profitability.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The TTM data indicates a significant revenue decline of 80.4% and a negative net profit margin of -3.28%, suggesting operational challenges. Gross profit margin remains strong at 72.08%, but the negative net income highlights profitability issues.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.0278, indicating low leverage. However, the return on equity is modest at 1.21%, suggesting limited profitability from equity investments. The equity ratio is healthy, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 16.78% in the TTM period, indicating potential cash generation issues. The operating cash flow to net income ratio is strong at 0.409, suggesting good cash conversion, but the free cash flow to net income ratio of 0.759 indicates room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.00B	1.01B	1.14B	1.10B	1.43B	1.72B
Gross Profit	728.14M	743.36M	867.12M	877.25M	885.04M	837.33M
EBITDA	141.26M	232.90M	275.94M	399.76M	467.15M	383.67M
Net Income	-24.30M	20.27M	119.54M	175.03M	265.87M	287.52M
Balance Sheet
Total Assets	3.05B	3.10B	3.40B	3.37B	3.36B	3.52B
Cash, Cash Equivalents and Short-Term Investments	43.38M	83.72M	125.15M	89.79M	86.14M	129.14M
Total Debt	326.95M	282.01M	113.70M	440.33M	487.29M	521.67M
Total Liabilities	1.52B	1.57B	1.44B	1.04B	1.11B	1.29B
Stockholders Equity	1.53B	1.53B	1.96B	2.33B	2.25B	2.23B
Cash Flow
Free Cash Flow	265.28M	318.78M	215.37M	362.24M	356.79M	318.53M
Operating Cash Flow	349.71M	401.43M	296.56M	444.54M	444.23M	407.40M
Investing Cash Flow	-103.88M	-102.09M	-68.47M	-273.62M	-139.44M	-174.57M
Financing Cash Flow	-289.27M	-340.73M	-192.72M	-167.27M	-347.79M	-203.00M

Premier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.26
• 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 28.26 is above the 20-day moving average (MA) of 28.22, above the 50-day MA of 28.10, and above the 200-day MA of 23.42, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
PGNY	79 Outperform	$2.13B	39.14	11.37%	―	11.41%	8.70%
OMCL	71 Outperform	$1.95B	101.99	1.62%	―	10.67%	―
PRVA	71 Outperform	$2.93B	167.89	2.74%	―	19.01%	38.68%
OPRX	61 Neutral	$259.29M	―	0.03%	―	24.19%	―
PINC	59 Neutral	$2.34B	-103.21	0.42%	2.97%	-21.26%	-119.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	48 Neutral	$438.59M	―	-13.63%	―	-16.65%	-71.92%

Premier Corporate Events

Patient Square Capital Completes Acquisition of Premier

On November 25, 2025, Patient Square Capital completed its acquisition of Premier, Inc., valued at $2.6 billion. As a result of the merger, Premier’s common stock ceased trading and was delisted from Nasdaq. Shareholders received $28.25 per share in cash. The merger led to significant changes in Premier’s corporate structure, including the resignation of its board members and the amendment of its certificate of incorporation and bylaws. The company also initiated steps to terminate its registration and reporting obligations with the SEC.

Premier Approves Acquisition by Patient Square Capital

On November 21, 2025, Premier, Inc. held a special meeting where stockholders overwhelmingly approved the company’s acquisition by Patient Square Capital. Approximately 99% of the shares voted were in favor of the transaction, which is expected to close on or about November 25, 2025. This acquisition will result in Premier stockholders receiving $28.25 in cash per share, representing a 23.8% premium to the company’s 60-day volume-weighted average price as of September 5, 2025. The merger positions Premier as a wholly owned subsidiary of Patient Square Capital, potentially impacting its market positioning and operations.

Premier Faces Shareholder Lawsuits Over Merger Deal

On September 21, 2025, Premier, Inc. entered into a merger agreement with Premium Parent, LLC, under which Premier will be acquired for $28.25 per share in cash. Following the announcement, three lawsuits were filed by shareholders alleging misleading information in the proxy statement, seeking to block the merger or seek damages. Premier, while denying any wrongdoing, has supplemented its disclosures to mitigate litigation risks and avoid delays in the merger process.

Premier Releases 2025 Sustainability Report

On October 20, 2025, Premier, Inc. released its 2025 Sustainability Report, highlighting its ongoing commitment to community health, ethics, and environmental stewardship. The report outlines Premier’s achievements in advocating for a smarter healthcare system, upholding ethical standards, investing in its workforce, and enhancing supply chain resilience. Notable initiatives include the launch of the Clinical and Social Needs Index and recognition of the 2025 Premier Cares Award winner, greeNest. Premier’s efforts are aimed at fostering better healthcare outcomes and responsible business practices, reflecting its dedication to serving communities and stakeholders.

Premier Announces Merger with Patient Square Capital

On September 21, 2025, Premier, Inc. announced a merger agreement to be acquired by Patient Square Capital, with stockholders receiving $28.25 per share in cash. The transaction, valued at $2.6 billion, is expected to close by the first quarter of 2026, subject to regulatory and stockholder approvals. The merger aims to enhance Premier’s financial flexibility and provide additional resources for innovation, with the company’s stock to be delisted from NASDAQ upon completion.