ICON plc (ICLR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Visa, Inc.

Mastercard, Inc.

Corpay, Inc.

WEX, Inc.

Copart, Inc.

PayPal Holdings, Inc.

Booz Allen Hamilton Holding Corp.

Equifax, Inc.

ICON plc

Global Payments, Inc.

Charles River Laboratories International, Inc.

Why is ICON plc ?

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 621.74
OPERATING CASH FLOW(Y) Lowest at USD 1,068.67 MM
ROCE(HY) Lowest at 2.45%

With ROCE of 9.23%, it has a very expensive valuation with a 0.87 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.62%, its profits have fallen by -7.6%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 22.93% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.62% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ICON plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ICON plc

-0.62%

-0.76

71.48%

S&P 500

22.93%

1.75

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.01%

EBIT Growth (5y)

22.85%

EBIT to Interest (avg)

9.73

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.63

Tax Ratio

8.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.28%

ROE (avg)

9.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.83

EV to EBIT

9.47

EV to EBITDA

6.62

EV to Capital Employed

0.87

EV to Sales

1.32

PEG Ratio

Dividend Yield

ROCE (Latest)

9.23%

ROE (Latest)

8.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 31.64 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.95 times

NET SALES(Q)

Highest at USD 2,112.52 MM

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 621.74

OPERATING CASH FLOW(Y)

Lowest at USD 1,068.67 MM

ROCE(HY)

Lowest at 2.45%

RAW MATERIAL COST(Y)

Grown by 30.08% (YoY

OPERATING PROFIT(Q)

Lowest at USD 307.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.56 %

PRE-TAX PROFIT(Q)

Lowest at USD 162.75 MM

NET PROFIT(Q)

Lowest at USD 151.9 MM

Here's what is working for ICON plc

Net Sales

Highest at USD 2,112.52 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 31.64 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for ICON plc

Interest Coverage Ratio

Lowest at 621.74 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 162.75 MM has Fallen at -51.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 151.9 MM has Fallen at -56.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

At USD 162.75 MM has Fallen at -46.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,068.67 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 307.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 14.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 162.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 151.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 30.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales