Premier (PINC) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: 3.25%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 116.6
• Beta (1Y): 0.26
• Revenue Growth: -24.79%
• EPS Growth: -78.38%
• Country: US
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.43
• Shares Outstanding: 82,549,644
• 10 Day Avg. Volume: 2,387,356
• 30 Day Avg. Volume: 1,743,340
• 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: 0.96
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 14.79
• 1Y Price Target: $25.86
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $28.00 ▲(8.28% Upside)

Premier's overall stock score reflects a mix of strengths and challenges. The most significant factor is the strong earnings call performance and positive future guidance, which is offset by technical indicators suggesting overbought conditions and a high valuation. Financial stability is a positive, but declining revenue and profitability margins present risks.

Positive Factors

Financial Performance

PINC's FY4Q print was ahead of expectations, driven by continued strength in Supply Chain Services leading to an overall EBITDA beat and solid initial FY26 guide.

Revenue Growth

Management indicated demand strength from hospitals and health systems for its offerings, showing signs of bearing fruit with recently signing 4 large deals.

Strategic Initiatives

Premier's acquisition of IllumiCare is aimed at enhancing its clinical decision support capabilities, aligning with its mission to drive value-based care and operational efficiency.

Negative Factors

Fee Pressures

Net admin fee pressure will remain a headwind to growth even with a slight step up in gross admin fee growth through FY26.

Market Visibility

Upward pressure on shareback rates limits visibility in the intermediate term.

Revenue Durability

There is reservation on revenue durability associated with advisory/consulting contracts.

Premier Business Overview & Revenue Model

Company Description

Premier Inc. (PINC) is a leading healthcare improvement company that operates in the healthcare sector. It provides a range of services and solutions to its members, which include hospitals, health systems, and other healthcare providers. Premier's core offerings include supply chain services, clinical and operational performance improvement consulting, data analytics, and performance benchmarking. By leveraging its extensive network and data-driven insights, Premier aims to enhance the quality of care and reduce costs for its members.

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: 25.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 25.86 is above the 20-day moving average (MA) of 24.01, above the 50-day MA of 22.52, and above the 200-day MA of 21.09, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 73.34 is Negative, neither overbought nor oversold. The STOCH value of 68.72 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
GDRX	66 Neutral	$1.50B	46.66	5.27%	―	3.20%	―
OMCL	66 Neutral	$1.50B	66.33	1.87%	―	6.39%	―
PINC	61 Neutral	$2.13B	116.55	3.56%	3.25%	-24.79%	-78.38%
EVH	55 Neutral	$1.09B	―	-13.38%	―	-6.71%	-71.40%
SOPH	52 Neutral	$228.42M	―	-74.09%	―	7.31%	-7.49%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
DH	49 Neutral	$557.10M	―	-64.27%	―	-5.24%	23.59%

Premier Corporate Events

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.

Premier Engages Stakeholders with July 2025 Presentation

Premier, Inc. announced that starting July 8, 2025, it will engage with investors and stakeholders to discuss its Stewardship Outreach presentation for July 2025. The company will not update its fiscal 2025 financial performance until the public announcement scheduled for August 18, 2025. The presentation includes forward-looking statements about Premier’s business strategies, healthcare improvements, and financial guidance, highlighting the company’s ongoing efforts to enhance technology and expand market presence. These initiatives are expected to impact Premier’s operations and industry positioning positively, offering potential growth and value creation for stakeholders.