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PPD

Nasdaq:PPD
Snowflake Description

Reasonable growth potential and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPD
Nasdaq
$7B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide. The last earnings update was 34 days ago. More info.


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  • PPD has significant price volatility in the past 3 months.
PPD Share Price and Events
7 Day Returns
19.7%
NasdaqGS:PPD
1.6%
US Life Sciences
2.4%
US Market
1 Year Returns
-
NasdaqGS:PPD
-4.8%
US Life Sciences
-10%
US Market
PPD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PPD (PPD) 19.7% -26% - - - -
US Life Sciences 1.6% -8% -15% -4.8% 63.7% 85.3%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • No trading data on PPD.
  • No trading data on PPD.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is PPD undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of PPD to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for PPD.

NasdaqGS:PPD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PPD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.914 (1 + (1- 21%) (84.45%))
1.351
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.351 * 5.44%)
9.09%

Discounted Cash Flow Calculation for NasdaqGS:PPD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for PPD is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:PPD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.09%)
2020 369.94 Analyst x5 339.12
2021 468.13 Analyst x7 393.39
2022 550.63 Analyst x6 424.18
2023 656.00 Analyst x1 463.25
2024 743.00 Analyst x1 480.98
2025 806.26 Est @ 8.51% 478.46
2026 858.53 Est @ 6.48% 467.03
2027 901.96 Est @ 5.06% 449.79
2028 938.62 Est @ 4.06% 429.08
2029 970.22 Est @ 3.37% 406.58
Present value of next 10 years cash flows $4,331.00
NasdaqGS:PPD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $970.22 × (1 + 1.74%) ÷ (9.09% – 1.74%)
$13,435.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,435.73 ÷ (1 + 9.09%)10
$5,630.39
NasdaqGS:PPD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,331.00 + $5,630.39
$9,961.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,961.39 / 348.58
$28.58
NasdaqGS:PPD Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.58
Current discount Discount to share price of $19.85
= -1 x ($19.85 - $28.58) / $28.58
30.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price PPD is available for.
Intrinsic value
31%
Share price is $19.85 vs Future cash flow value of $28.58
Current Discount Checks
For PPD to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PPD's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • PPD's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for PPD's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PPD's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PPD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.20
NasdaqGS:PPD Share Price ** NasdaqGS (2020-04-07) in USD $19.85
United States of America Life Sciences Industry PE Ratio Median Figure of 19 Publicly-Listed Life Sciences Companies 30.54x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of PPD.

NasdaqGS:PPD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PPD Share Price ÷ EPS (both in USD)

= 19.85 ÷ 0.20

101.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPD is overvalued based on earnings compared to the US Life Sciences industry average.
  • PPD is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PPD's expected growth come at a high price?
Raw Data
NasdaqGS:PPD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 101.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
33.5%per year
United States of America Life Sciences Industry PEG Ratio Median Figure of 16 Publicly-Listed Life Sciences Companies 2.3x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NasdaqGS:PPD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 101.41x ÷ 33.5%

3.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPD is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PPD's assets?
Raw Data
NasdaqGS:PPD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-9.66
NasdaqGS:PPD Share Price * NasdaqGS (2020-04-07) in USD $19.85
United States of America Life Sciences Industry PB Ratio Median Figure of 38 Publicly-Listed Life Sciences Companies 4.6x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:PPD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PPD Share Price ÷ Book Value per Share (both in USD)

= 19.85 ÷ -9.66

-2.06x

* Primary Listing of PPD.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • PPD has negative assets, we can't compare the value of its assets to the US Life Sciences industry average.
X
Value checks
We assess PPD's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. PPD has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is PPD expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PPD expected to grow at an attractive rate?
  • PPD's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • PPD's earnings growth is expected to exceed the United States of America market average.
  • PPD's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PPD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PPD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 33.5%
NasdaqGS:PPD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 7.8%
United States of America Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
United States of America Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PPD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PPD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 5,948 883 609 1
2023-12-31 5,596 697 550 2
2022-12-31 5,100 617 452 9
2021-12-31 4,645 536 332 12
2020-12-31 4,197 413 188 12
2020-04-08
NasdaqGS:PPD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,031 433 55
2019-09-30 3,963 436 84
2019-06-30 3,846 398 62
2019-03-31 3,798 411 79
2018-12-31 3,749 423 96
2017-12-31 2,767 359 199

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PPD's earnings are expected to grow significantly at over 20% yearly.
  • PPD's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PPD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from PPD Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PPD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 1.74 1.74 1.74 1.00
2023-12-31 1.58 1.67 1.48 2.00
2022-12-31 1.26 1.64 0.98 6.00
2021-12-31 0.93 1.44 0.63 7.00
2020-12-31 0.65 1.22 0.26 7.00
2020-04-08
NasdaqGS:PPD Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.20
2019-09-30 0.54
2019-06-30 0.40
2019-03-31 0.51
2018-12-31 0.34
2017-12-31 0.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if PPD will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess PPD's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
PPD has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has PPD performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare PPD's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if PPD's year on year earnings growth rate was positive over the past 5 years.
  • PPD's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • PPD's 1-year earnings growth is negative, it can't be compared to the US Life Sciences industry average.
Earnings and Revenue History
PPD's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from PPD Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PPD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,031.02 54.67 931.51
2019-09-30 3,962.77 84.49 879.85
2019-06-30 3,846.31 61.94 854.09
2019-03-31 3,797.64 79.14 829.59
2018-12-31 3,748.97 96.34 813.02
2017-12-31 2,767.48 198.89 853.03
2016-12-31 2,467.94 183.10 708.93

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if PPD has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • PPD used its assets less efficiently than the US Life Sciences industry average last year based on Return on Assets.
  • Unable to establish if PPD improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess PPD's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
PPD has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is PPD's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up PPD's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PPD's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • PPD's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of PPD's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • PPD has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from PPD Company Filings, last reported 3 months ago.

NasdaqGS:PPD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -2,668.11 5,616.56 345.19
2019-09-30 -2,574.91 5,618.90 403.40
2019-06-30 -2,558.90 5,623.47 351.31
2019-03-31 -2,558.90 5,623.47 351.31
2018-12-31 -1,497.53 4,771.87 553.07
2017-12-31 -1,469.95 4,822.23 418.96
2016-12-31
  • PPD has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if PPD's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (7.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess PPD's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. PPD has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is PPD's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from PPD dividends. Estimated to be 0.08% next year.
If you bought $2,000 of PPD shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate PPD's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PPD's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PPD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PPD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 4.00
2021-12-31 0.02 6.00
2020-12-31 0.02 6.00
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as PPD has not reported any payouts.
  • Unable to verify if PPD's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PPD's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PPD has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of PPD's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess PPD's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can PPD afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PPD has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of PPD's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Simmons
COMPENSATION $7,659,839
AGE 54
TENURE AS CEO 7.9 years
CEO Bio

Mr. David S. Simmons has been Chairman and Chief Executive Officer at PPD, Inc. (alternative name Jaguar Holding Company I, LLC) since May 2012. He has been the Chairman and Chief Executive Officer of Pharmaceutical Product Development, LLC. since June 4, 2012. Mr. Simmons served as the President and General Manager Emerging Markets & Established Products units at Pfizer Inc. from December 2010 to June 1, 2012. He served as the President and General Manager of Established Products at Pfizer from 2008 to December 2010. Mr. Simmons joined PPD following 15 years with Pfizer in several senior roles. Since joining Pfizer in 1996, Mr. Simmons has held various positions of increasing responsibility in pharmaceutical operations including, Regional President, Central Southern Europe; Vice President of Marketing, Pfizer Canada; and Country Manager, Pfizer Greece. Prior to this role, he held various positions of increasing responsibility in information technology and pharmaceutical operations, including roles in several countries around the world. Mr. Simmons currently serves on the board of directors for Albany Molecular Research, Inc., a contract research and manufacturing organization, and Edelman Financial Engines LLC, a financial planning and investment management firm, and serves as a member of the board of advisors for Carnegie Mellon University’s Tepper School of Business. He Simmons has been the Chairman of Pharmaceutical Product Development, Inc. since June 4, 2012. He served as the Chairman at Association of Clinical Research Organizations until January 30, 2017 and served as its Director. He serves as a Member of the U.S.-India Business Council. He was Director at Owens & Minor Inc. from October 30, 2013 to May 08, 2018. Mr. Simmons earned his degree in Applied Mathematics and Industrial Management from Carnegie-Mellon University.

CEO Compensation
  • David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • David's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PPD management team in years:

2.8
Average Tenure
50
Average Age
  • The tenure for the PPD management team is about average.
Management Team

David Simmons

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
54
TENURE
7.9 yrs

Chris Scully

TITLE
Executive VP
COMPENSATION
$2M
AGE
48
TENURE
1.9 yrs

William Sharbaugh

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
56
TENURE
13 yrs

B. Hartman

TITLE
Executive VP
COMPENSATION
$1M
AGE
55
TENURE
2.8 yrs

Anshul Thakral

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
$1M
AGE
41
TENURE
0.4 yrs

Glen Donovan

TITLE
Chief Accounting Officer
AGE
45
TENURE
4.8 yrs

Nate Speicher

TITLE
Investor Relations Officer

Ron Garrow

TITLE
Executive VP & Chief HR Officer
AGE
55
TENURE
1.8 yrs

Chris Fikry

TITLE
Executive Vice President of Global Laboratory Services
AGE
42
TENURE
2.8 yrs

David Johnston

TITLE
Executive Vice President of Global Clinical Development
AGE
50
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the PPD board of directors in years:

2.9
Average Tenure
48
Average Age
  • The average tenure for the PPD board of directors is less than 3 years, this suggests a new board.
Board of Directors

P. Hunter Philbrick

TITLE
Independent Director
TENURE
8.3 yrs

David Simmons

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
54
TENURE
7.9 yrs

Jeff Kindler

TITLE
Independent Director
COMPENSATION
$189K
AGE
63
TENURE
2.9 yrs

Allen Thorpe

TITLE
Independent Director
AGE
48
TENURE
8.5 yrs

Stephen Wise

TITLE
Independent Director
AGE
46
TENURE
8.3 yrs

Joe Bress

TITLE
Independent Director
TENURE
1 yrs

Stephen Ensley

TITLE
Independent Director
AGE
34
TENURE
2.7 yrs

Tessa Hilado

TITLE
Independent Director
COMPENSATION
$187K
AGE
54
TENURE
2.2 yrs

Colin Hill

TITLE
Independent Director
COMPENSATION
$188K
AGE
46
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by PPD individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Feb 20 Buy Glen Donovan Individual 10. Feb 20 10. Feb 20 500 $27.00 $13,500
12. Feb 20 Buy David Simmons Individual 10. Feb 20 10. Feb 20 40,000 $27.00 $1,080,000
12. Feb 20 Buy Christopher Fikry Individual 10. Feb 20 10. Feb 20 7,400 $27.00 $199,800
12. Feb 20 Buy Maria Hilado Individual 10. Feb 20 10. Feb 20 8,000 $27.00 $216,000
12. Feb 20 Buy Jeffrey Kindler Individual 10. Feb 20 10. Feb 20 18,500 $27.00 $499,500
12. Feb 20 Buy William Sharbaugh Individual 10. Feb 20 10. Feb 20 30,000 $27.00 $810,000
12. Feb 20 Buy Christopher Scully Individual 10. Feb 20 10. Feb 20 26,000 $27.00 $702,000
X
Management checks
We assess PPD's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. PPD has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide. The company operates in two segments, Clinical Development Services and Laboratory Services. It offers clinical development services, including product development and consulting, early development, Phases II-IV clinical trial management, accelerated enrollment, peri- and post-approval, and medical communications services. The company also provides laboratory services comprising bioanalytical, biomarker, vaccine science, good manufacturing practice, and central laboratory services. It serves pharmaceutical, biotechnology, medical device, and government organizations, as well as other industry participants. The company was founded in 1985 and is headquartered in Wilmington, North Carolina.

Details
Name: PPD, Inc.
PPD
Exchange: NasdaqGS
Founded: 1985
$6,919,321,376
348,580,422
Website: http://www.ppdi.com
Address: PPD, Inc.
929 North Front Street,
Wilmington,
North Carolina, 28401-3331,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PPD Common Stock Nasdaq Global Select US USD 06. Feb 2020
Number of employees
Current staff
Staff numbers
23,000
PPD employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 06:14
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.