Premier (PINC) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 2.98%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 127.8
• Beta (1Y): 0.24
• Revenue Growth: -24.79%
• EPS Growth: -78.38%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.43
• Shares Outstanding: 82,684,430
• 10 Day Avg. Volume: 1,854,498
• 30 Day Avg. Volume: 2,072,928
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 14.79
• 1Y Price Target: $26.79
• Price Target Upside: -4.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Neutral
• Price Target: $31.00 ▲(10.01% Upside)

Premier's strong earnings performance and positive technical indicators are the most significant factors driving the score. However, high valuation metrics and challenges in maintaining revenue growth and profitability weigh on the overall score.

Positive Factors

Strong Supply Chain Services

The growth in Supply Chain Services indicates Premier's ability to enhance contract penetration and onboard new members, strengthening its core revenue stream and competitive position in the healthcare sector.

Acquisition of IllumiCare

The acquisition of IllumiCare enhances Premier's clinical decision support capabilities, leveraging AI to improve healthcare delivery, which can drive long-term growth and strengthen its service offerings.

Conservative Balance Sheet

A low debt-to-equity ratio reflects Premier's conservative financial management, providing flexibility for future investments and acquisitions, and ensuring long-term financial stability.

Negative Factors

Declining Revenue Growth

The decline in revenue growth suggests challenges in maintaining sales momentum, which could impact Premier's ability to sustain its market position and financial performance over time.

Reduced Profitability Margins

Decreased profitability margins indicate pressure on operational efficiency, which may affect Premier's ability to generate sustainable earnings and invest in growth initiatives.

Challenges in Performance Services

Challenges in the Performance Services segment highlight difficulties in rebuilding the sales funnel, which could hinder Premier's ability to capitalize on advisory opportunities and drive future growth.

Premier Business Overview & Revenue Model

Company Description

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions. This segment also provides the ASCENDrive programs for members to receive group purchasing programs, tiers, and prices; SURPASS Performance Group services; STOCKD, an e-commerce platform; PROVIDEGX program, which identifies supply sources for drugs that are on or may be at risk of being added to the national drug shortage list, or that are vulnerable to pricing volatility, as well as direct sourcing business; SaaS informatics products; supply chain co-management services; purchased services contracts; direct sourcing solutions; and supply chain resiliency programs. The Performance Services segment provides technology and services platform with offerings that help optimize performance in three main areas, including clinical intelligence, margin improvement, and value-based care under the PINC AI brand; third party administrator services and management of health benefit programs under the Contigo Health brand; and digital invoicing and payables services that offers financial support services to healthcare product suppliers and service providers under the Remitra brand. The company also provides services to other businesses, including food service, schools, and universities. Premier, Inc. was incorporated in 2013 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Premier Inc. generates revenue primarily through membership fees from healthcare providers who participate in its cooperative purchasing programs and services. The company also earns income from consulting services aimed at improving operational efficiencies and clinical outcomes. Additionally, Premier has developed a robust analytics platform that provides valuable data insights to its members, creating another significant revenue stream. Strategic partnerships with manufacturers and suppliers further enhance its offerings and provide additional income through purchasing agreements. Overall, Premier's diversified revenue model is supported by its commitment to improving healthcare delivery and outcomes, enabling it to drive sustainable earnings.

Premier Financial Statement Overview

Summary

Premier's financial performance shows stability with strong gross margins and a conservative balance sheet. However, challenges are evident with declining revenue and profitability margins, indicating potential difficulties in maintaining growth and operational efficiency.

Income Statement

Premier's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 7.95%, reflecting potential challenges in maintaining sales momentum. However, the company maintains a healthy gross profit margin of 70.07% in the TTM, indicating strong cost management. The net profit margin has decreased to 5.68% in the TTM, suggesting reduced profitability. The EBIT and EBITDA margins have also declined, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet remains stable with a low debt-to-equity ratio of 0.19 in the TTM, reflecting conservative leverage. The return on equity (ROE) is modest at 3.49%, indicating limited profitability on shareholder equity. The equity ratio is strong, suggesting a solid capital structure. However, the declining ROE trend could be a concern if it continues.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth by 1.99% in the TTM, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 0.45, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio remains strong at 0.81, indicating efficient cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	1.01B	1.35B	1.34B	1.43B	1.72B
Gross Profit	733.86M	743.36M	888.01M	896.29M	885.04M	837.33M
EBITDA	138.00M	232.90M	256.97M	398.26M	467.15M	383.67M
Net Income	20.27M	20.27M	119.54M	175.03M	265.87M	287.52M
Balance Sheet
Total Assets	3.12B	3.10B	3.40B	3.37B	3.36B	3.52B
Cash, Cash Equivalents and Short-Term Investments	83.72M	83.72M	125.15M	89.79M	86.14M	129.14M
Total Debt	291.41M	291.41M	113.70M	440.33M	487.29M	521.67M
Total Liabilities	1.59B	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	318.78M	318.78M	215.37M	362.24M	356.79M	318.53M
Operating Cash Flow	401.43M	401.43M	296.56M	444.54M	444.23M	407.40M
Investing Cash Flow	-102.09M	-102.09M	-68.47M	-273.62M	-139.44M	-174.57M
Financing Cash Flow	-340.73M	-340.73M	-192.72M	-167.27M	-347.79M	-203.00M

Premier Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 28.18 is above the 20-day moving average (MA) of 27.97, above the 50-day MA of 27.10, and above the 200-day MA of 22.22, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.95 is Negative, 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
PRVA	―	$3.13B	218.39	2.32%	―	12.05%	-2.46%
PGNY	―	$1.68B	33.16	10.94%	―	9.62%	-6.61%
PINC	―	$2.33B	127.80	3.56%	2.98%	-24.79%	-78.38%
OMCL	―	$1.38B	60.69	1.87%	―	6.39%	―
OPRX	―	$402.49M	―	-8.21%	―	25.90%	46.13%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	―	$870.74M	―	-13.38%	―	-6.71%	-71.40%

Premier Corporate Events

Premier, Inc. Announces Merger Agreement with Premium Parent, LLC

On September 21, 2025, Premier, Inc. entered into a merger agreement with Premium Parent, LLC and Premium Merger Sub, Inc., both subsidiaries of Patient Square Capital, LP, for an acquisition priced at $28.25 per share in cash. The merger, if approved by stockholders at a virtual meeting on November 21, 2025, will result in Premier becoming a wholly owned subsidiary of Premium Parent, LLC. The board of directors has unanimously recommended the merger, considering it in the best interests of the company and its stockholders. This strategic move is expected to impact Premier’s market positioning by aligning with a larger capital management firm, potentially enhancing its operational capabilities and market reach.

The most recent analyst rating on (PINC) stock is a Hold with a $28.25 price target. To see the full list of analyst forecasts on Premier stock, see the PINC Stock Forecast page.

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.

The most recent analyst rating on (PINC) stock is a Hold with a $28.25 price target. To see the full list of analyst forecasts on Premier stock, see the PINC Stock Forecast page.

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.

The most recent analyst rating on (PINC) stock is a Sell with a $21.00 price target. To see the full list of analyst forecasts on Premier stock, see the PINC Stock Forecast page.

Premier Inc. Earnings Call: Strong Finish and Strategic Growth

Premier Inc. recently held its earnings call, revealing a strong overall performance with notable achievements in revenue, profitability, and strategic acquisitions. Despite these successes, the company faces ongoing challenges in its Performance Services segment and fee share increases in Supply Chain Services. Nevertheless, Premier maintains a positive outlook for fiscal year 2026 and beyond, anticipating growth and stabilization.

Premier Updates Executive Compensation Amid Market Challenges

Premier, Inc. announced changes to executive compensation for fiscal year 2026, approved on August 17, 2025, to promote retention and incentivize performance amid a competitive market for executive talent. The company reported a decrease in fiscal-year 2025 fourth-quarter total net revenue by 12% from the prior-year period, with a net income drop of 70%, yet exceeded expectations in revenue and profitability due to strong results in the Supply Chain Services segment.

The most recent analyst rating on (PINC) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Premier stock, see the PINC Stock Forecast page.

Premier, Inc. Reports Fiscal 2025 Financial Results

Premier, Inc. is a technology-driven healthcare improvement company based in Charlotte, N.C., offering solutions to healthcare providers across the U.S. through data analytics, supply chain solutions, and consulting services.