Innoviva, Inc. (INVA) 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

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Why is Innoviva, Inc. ?

High Management Efficiency with a high ROCE of 30.79%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.27 times

Poor long term growth as Operating profit has grown by an annual rate -12.41% of over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 886.43
RAW MATERIAL COST(Y) Grown by 6.15% (YoY)
INTEREST(Q) Highest at USD 5.44 MM

With ROCE of 18.94%, it has a very attractive valuation with a 2.42 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.80%, its profits have risen by 19.7% ; the PEG ratio of the company is 16.9

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 4.80% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Innoviva, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Innoviva, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Innoviva, Inc.

4.8%

1.41

29.19%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.14%

EBIT Growth (5y)

-12.41%

EBIT to Interest (avg)

12.42

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.31

Tax Ratio

28.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

30.79%

ROE (avg)

41.84%

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

2.05

EV to EBIT

12.80

EV to EBITDA

10.27

EV to Capital Employed

2.42

EV to Sales

4.93

PEG Ratio

16.93

Dividend Yield

ROCE (Latest)

18.94%

ROE (Latest)

12.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

ROCE(HY)

Highest at 50.72%

CASH AND EQV(HY)

Highest at USD 1,178.6 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.1 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.09 times

EPS(Q)

Highest at USD 2.22

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 886.43

RAW MATERIAL COST(Y)

Grown by 6.15% (YoY

INTEREST(Q)

Highest at USD 5.44 MM

Here's what is working for Innoviva, Inc.

EPS

Highest at USD 2.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,178.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.09 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 Innoviva, Inc.

Interest

At USD 5.44 MM has Grown at 64.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 886.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 5.44 MM

in the last five periods and Increased by 64.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 6.15% (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