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Icon PLC ICLR

Morningstar Rating
$331.26 +5.75 (1.77%)
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Company Report

Icon Earnings: Strong Performance Amid Macroeconomic Challenges; Raising Fair Value Estimate by 10%

Icon ended 2023 in a healthy position with revenue of $8.12 billion, a nearly 5% increase from the previous year, and adjusted EBITDA growth exceeding 14%. We continue to have a positive outlook for the firm and have raised our fair value estimate to $268 per share from $243 based on Icon’s strong results despite challenging macroeconomic conditions. We reaffirm our narrow economic moat rating as well as our Medium Morningstar Uncertainty Rating. Despite our positive outlook, we view the stock as currently overvalued. Investors have pushed the stock up 40% since Icon reported third-quarter results in October, due to stronger-than-expected performance amid macroeconomic pressures.

Price vs Fair Value

ICLR is trading at a 24% premium.
Price
$331.38
Fair Value
$341.00
Uncertainty
Medium
1-Star Price
$271.10
5-Star Price
$364.40
Economic Moat
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Capital Allocation
Hymkpgjxs

Bulls Say, Bears Say

Bulls

Icon is highly exposed to the late-stage CRO industry, which due to its complexity is conducive to long-term competitive advantages.

Bears

Drawbacks to biotech funding or declines in outsourcing penetration rates could have a material impact on Icon's growth.

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News

Trading Information

Previous Close Price
$325.51
Day Range
$320.86332.95
52-Week Range
$181.92332.95
Bid/Ask
$132.50 / $529.98
Market Cap
$27.33 Bil
Volume/Avg
650,344 / 556,935

Key Statistics

Price/Earnings (Normalized)
24.09
Price/Sales
3.38
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Icon is a global late-stage contract research organization that provides drug development and clinical trial services to pharmaceutical, biotechnology, and medical-device firms. While the vast majority of its revenue comes from clinical research, Icon also offers ancillary services such as laboratory and imaging capabilities. The company is headquartered in Ireland.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Mid Growth
Total Number of Employees
41,100

Competitors

Valuation

Metric
ICLR
MEDP
FTRE
Price/Earnings (Normalized)
24.0945.28
Price/Book Value
2.9622.121.92
Price/Sales
3.386.791.09
Price/Cash Flow
21.4839.1715.78
Price/Earnings
ICLR
MEDP
FTRE

Financial Strength

Metric
ICLR
MEDP
FTRE
Quick Ratio
1.160.591.49
Current Ratio
1.210.641.62
Interest Coverage
2.99688.870.44
Quick Ratio
ICLR
MEDP
FTRE

Profitability

Metric
ICLR
MEDP
FTRE
Return on Assets (Normalized)
6.18%20.56%4.39%
Return on Equity (Normalized)
11.98%69.64%8.82%
Return on Invested Capital (Normalized)
10.27%48.77%9.10%
Return on Assets
ICLR
MEDP
FTRE
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Diagnostics & Research Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TMO
Thermo Fisher Scientific IncRfkj$221.8 Bil
DHR
Danaher CorpTnyqkm$189.5 Bil
IDXX
IDEXX Laboratories IncHggvlq$47.4 Bil
IQV
IQVIA Holdings IncFjrjg$45.8 Bil
A
Agilent Technologies IncTlwzx$41.9 Bil
MTD
Mettler-Toledo International IncNbptr$27.6 Bil
ILMN
Illumina IncSqwgy$21.9 Bil
WAT
Waters CorpZmvn$20.5 Bil
LH
Laboratory Corp of America HoldingsKlfmzc$18.4 Bil

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