IQVIA Holdings Inc. (IQV) stock analysis

P/E above its 5-year median

Iqvia's P/E of 33.4 is above its own 5-year median of 32.6.

P/E above the industry

Iqvia's P/E of 33.4 is above the Engineering, Accounting, Research, Management, and Related Services median of 25.2.

EV/EBITDA above its 5-year median

Iqvia's EV/EBITDA of 17.2 is above its 5-year median of 16.8.

P/B above the industry

Iqvia's price-to-book of 6.79 is above the Engineering, Accounting, Research, Management, and Related Services median of 3.70.

Trading above fair value

The share price of $274.53 is above our fair value estimate of $219.95.

Margin of safety under 20%

The price is 24.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 11.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.7% over the last twelve months, against a 5-year average of 37.3% a year.

Growing faster than the industry

Revenue grew 8.8% over the last twelve months; the Engineering, Accounting, Research, Management, and Related Services median is 6.6%.

Guidance raised

Iqvia raised its full-year 2026 revenue outlook on Jul 28, 2026.

Gross margin slipping

Gross margin was 33.1% over the last twelve months, against 33.8% a year earlier.

Return on equity over 15%

Return on equity was 21.7% over the last twelve months and averaged 20.3% over five years.

Return on capital under 10%

Return on invested capital was 9.4%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Iqvia's return on equity of 21.7% is above the Engineering, Accounting, Research, Management, and Related Services median of -10.2%.

Earnings grew over 5 years

Net income grew 37.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 8.1% over the last twelve months, against a 5-year average of 8.2%.

Net margin above the industry

Iqvia's net margin of 8.1% is above the Engineering, Accounting, Research, Management, and Related Services median of -53.6%.

High debt

Debt is 241% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 209% five years ago to 241%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.0% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.8 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.83 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.28; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Iqvia has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.