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PRA Health Sciences

Nasdaq:PRAH
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRAH
Nasdaq
$6B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide. The last earnings update was 13 days ago. More info.


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PRAH Share Price and Events
7 Day Returns
4.5%
NasdaqGS:PRAH
-1.5%
US Life Sciences
0.3%
US Market
1 Year Returns
-0%
NasdaqGS:PRAH
14.1%
US Life Sciences
12.5%
US Market
PRAH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
PRA Health Sciences (PRAH) 4.5% 4.8% 7.6% -0% 86.7% 399%
US Life Sciences -1.5% 2.2% 2.1% 14.1% 83.2% 115.6%
US Market 0.3% 4.1% 5.6% 12.5% 39.4% 44.7%
1 Year Return vs Industry and Market
  • PRAH underperformed the Life Sciences industry which returned 14.1% over the past year.
  • PRAH underperformed the Market in United States of America which returned 12.5% over the past year.
Price Volatility
PRAH
Industry
5yr Volatility vs Market

PRAH Value

 Is PRA Health Sciences 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 PRA Health Sciences 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 PRA Health Sciences.

NasdaqGS:PRAH 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 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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:PRAH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.022 (1 + (1- 21%) (24.81%))
1.149
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.149 * 5.96%)
9.58%

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

The calculations below outline how an intrinsic value for PRA Health Sciences 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:PRAH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.58%)
2020 365.21 Analyst x3 333.30
2021 407.30 Analyst x1 339.23
2022 439.24 Est @ 7.84% 333.86
2023 466.95 Est @ 6.31% 323.90
2024 491.39 Est @ 5.23% 311.07
2025 513.42 Est @ 4.48% 296.61
2026 533.73 Est @ 3.96% 281.40
2027 552.89 Est @ 3.59% 266.03
2028 571.31 Est @ 3.33% 250.87
2029 589.31 Est @ 3.15% 236.16
Present value of next 10 years cash flows $2,972.00
NasdaqGS:PRAH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $589.31 × (1 + 2.73%) ÷ (9.58% – 2.73%)
$8,843.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,843.44 ÷ (1 + 9.58%)10
$3,543.87
NasdaqGS:PRAH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,972.00 + $3,543.87
$6,515.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,515.87 / 63.25
$103.02
NasdaqGS:PRAH Discount to Share Price
Calculation Result
Value per share (USD) From above. $103.02
Current discount Discount to share price of $101.75
= -1 x ($101.75 - $103.02) / $103.02
1.2%

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

Current Discount
Amount off the current price PRA Health Sciences is available for.
Intrinsic value
1%
Share price is $101.75 vs Future cash flow value of $103.02
Current Discount Checks
For PRA Health Sciences to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • PRA Health Sciences's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • PRA Health Sciences'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 PRA Health Sciences's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are PRA Health Sciences's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PRAH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $3.69
NasdaqGS:PRAH Share Price ** NasdaqGS (2019-11-12) in USD $101.75
United States of America Life Sciences Industry PE Ratio Median Figure of 18 Publicly-Listed Life Sciences Companies 32.14x
United States of America Market PE Ratio Median Figure of 2,922 Publicly-Listed Companies 18.25x

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

** Primary Listing of PRA Health Sciences.

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

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

= 101.75 ÷ 3.69

27.61x

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

  • PRA Health Sciences is good value based on earnings compared to the US Life Sciences industry average.
  • PRA Health Sciences is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does PRA Health Sciences's expected growth come at a high price?
Raw Data
NasdaqGS:PRAH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
14.1%per year
United States of America Life Sciences Industry PEG Ratio Median Figure of 15 Publicly-Listed Life Sciences Companies 2.53x
United States of America Market PEG Ratio Median Figure of 2,023 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.61x ÷ 14.1%

1.95x

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

  • PRA Health Sciences is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on PRA Health Sciences's assets?
Raw Data
NasdaqGS:PRAH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $14.97
NasdaqGS:PRAH Share Price * NasdaqGS (2019-11-12) in USD $101.75
United States of America Life Sciences Industry PB Ratio Median Figure of 36 Publicly-Listed Life Sciences Companies 4.52x
United States of America Market PB Ratio Median Figure of 5,066 Publicly-Listed Companies 1.74x
NasdaqGS:PRAH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 101.75 ÷ 14.97

6.8x

* Primary Listing of PRA Health Sciences.

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

  • PRA Health Sciences is overvalued based on assets compared to the US Life Sciences industry average.
X
Value checks
We assess PRA Health Sciences'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. PRA Health Sciences 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.

PRAH Future Performance

 How is PRA Health Sciences 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
14.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is PRA Health Sciences expected to grow at an attractive rate?
  • PRA Health Sciences's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • PRA Health Sciences's earnings growth is positive but not above the United States of America market average.
  • PRA Health Sciences's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PRAH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PRAH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 14.1%
NasdaqGS:PRAH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 7.2%
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 7.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*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:PRAH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month 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:PRAH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,048 419 1
2022-12-31 3,781 369 1
2021-12-31 3,573 503 337 7
2020-12-31 3,318 378 282 12
2019-12-31 3,063 325 242 12
2019-11-13
NasdaqGS:PRAH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 2,996 197 240
2019-06-30 2,933 238 158
2019-03-31 2,892 336 159
2018-12-31 2,872 330 154
2018-09-30 2,798 301 66
2018-06-30 2,663 292 113
2018-03-31 2,473 266 101
2017-12-31 2,259 220 87
2017-09-30 2,017 211 117
2017-06-30 1,835 152 100
2017-03-31 1,695 129 109
2016-12-31 1,812 160 68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • PRA Health Sciences's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
  • PRA Health Sciences's revenue is expected to grow by 7.2% 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:PRAH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from PRA Health Sciences Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PRAH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.82 6.82 6.82 1.00
2022-12-31 5.94 5.94 5.94 1.00
2021-12-31 5.12 5.46 4.74 5.00
2020-12-31 4.35 4.54 4.02 8.00
2019-12-31 3.67 3.72 3.59 8.00
2019-11-13
NasdaqGS:PRAH Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 3.69
2019-06-30 2.44
2019-03-31 2.46
2018-12-31 2.40
2018-09-30 1.04
2018-06-30 1.79
2018-03-31 1.60
2017-12-31 1.39
2017-09-30 1.89
2017-06-30 1.63
2017-03-31 1.79
2016-12-31 1.12

*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.
  • PRA Health Sciences is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess PRA Health Sciences'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.
PRA Health Sciences has a total score of 2/6, 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.

PRAH Past Performance

  How has PRA Health Sciences 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 PRA Health Sciences'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.
  • PRA Health Sciences has delivered over 20% year on year earnings growth in the past 5 years.
  • PRA Health Sciences's 1-year earnings growth exceeds its 5-year average (260.9% vs 43.5%)
  • PRA Health Sciences's earnings growth has exceeded the US Life Sciences industry average in the past year (260.9% vs 37.2%).
Earnings and Revenue History
PRA Health Sciences'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 PRA Health Sciences Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PRAH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 2,995.67 239.67 649.92
2019-06-30 2,932.58 158.16 647.71
2019-03-31 2,892.11 159.01 640.08
2018-12-31 2,871.92 153.91 634.68
2018-09-30 2,798.17 66.41 366.51
2018-06-30 2,662.58 113.12 357.79
2018-03-31 2,473.47 100.68 342.82
2017-12-31 2,259.39 86.93 325.38
2017-09-30 2,017.11 117.00 342.58
2017-06-30 1,834.94 100.24 325.14
2017-03-31 1,695.46 109.37 322.34
2016-12-31 1,811.71 68.18 312.06
2016-09-30 1,528.68 82.65 268.13
2016-06-30 1,473.93 74.86 264.06
2016-03-31 1,416.20 48.61 249.57
2015-12-31 1,375.85 81.77 246.42
2015-09-30 1,337.34 30.44 256.52
2015-06-30 1,312.31 7.96 256.86
2015-03-31 1,287.21 -8.51 253.97
2014-12-31 1,266.60 -35.74 253.97
2014-09-30 1,241.63 -22.30 266.31
2014-06-30 1,109.70 -106.90 230.97
2014-03-31 977.75 -98.04 218.06
2013-12-31 832.90 -88.33 212.61
2012-12-31 597.07 -2.71 150.84

*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.
  • Whilst PRA Health Sciences has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • PRA Health Sciences used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.
  • PRA Health Sciences has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess PRA Health Sciences'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.
PRA Health Sciences has a total score of 5/6, 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.

PRAH Health

 How is PRA Health Sciences'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 PRA Health Sciences's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • PRA Health Sciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • PRA Health Sciences's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of PRA Health Sciences'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.
  • Debt is not covered by short term assets, assets are 0.7x debt.
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 PRA Health Sciences Company Filings, last reported 1 month ago.

NasdaqGS:PRAH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 946.74 1,392.20 181.77
2019-06-30 1,163.70 1,116.53 141.89
2019-03-31 1,115.16 1,082.71 177.14
2018-12-31 1,051.42 1,082.38 144.22
2018-09-30 980.38 1,191.51 127.52
2018-06-30 954.12 1,300.63 123.23
2018-03-31 944.88 1,338.91 130.66
2017-12-31 936.48 1,345.69 192.66
2017-09-30 936.30 1,350.22 193.95
2017-06-30 848.18 833.58 113.75
2017-03-31 774.78 820.98 124.06
2016-12-31 729.25 828.30 144.62
2016-09-30 738.02 884.06 130.34
2016-06-30 714.10 883.55 95.90
2016-03-31 708.84 882.20 97.64
2015-12-31 702.72 889.51 121.07
2015-09-30 693.05 930.25 48.44
2015-06-30 695.52 944.36 61.15
2015-03-31 648.21 960.78 64.00
2014-12-31 676.82 943.89 85.19
2014-09-30 417.13 1,260.41 49.25
2014-06-30 462.06 1,263.11 57.65
2014-03-31 455.83 1,286.87 58.30
2013-12-31 467.34 1,268.39 72.16
2012-12-31 175.96 454.83 109.21
  • PRA Health Sciences's level of debt (147.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (299.3% vs 147.1% today).
  • Debt is not well covered by operating cash flow (14.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess PRA Health Sciences'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. PRA Health Sciences has a total score of 3/6, 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.

PRAH Dividends

 What is PRA Health Sciences'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 PRA Health Sciences dividends. Estimated to be 0% next year.
If you bought $2,000 of PRA Health Sciences 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 PRA Health Sciences's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate PRA Health Sciences'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:PRAH 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 1948 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:PRAH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00
2019-11-13

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

  • Unable to perform a dividend volatility check as PRA Health Sciences has not reported any payouts.
  • Unable to verify if PRA Health Sciences's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of PRA Health Sciences's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as PRA Health Sciences has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of PRA Health Sciences'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 PRA Health Sciences's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 PRA Health Sciences afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. PRA Health Sciences 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.

PRAH Management

 What is the CEO of PRA Health Sciences'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
Colin Shannon
COMPENSATION $7,870,225
AGE 60
TENURE AS CEO 9.8 years
CEO Bio

Mr. Colin Shannon has been the Chief Executive Officer at PRA Health Sciences, Inc. since January 1, 2010 and its President since May 2007 and serves as its Chairman of the Board of Directors. Mr. Shannon served as Chief Operating Officer of PRA International since May 2007. Mr. Shannon joined PRA in 2007. He served as an Executive Vice President of Global Clinical Operations at Pharmaceutical Product Development Inc. (PPD) since July 7, 2004. Mr. Shannon joined PPD in 1995 and served for four years as Chief Operating Officer for its European operations. Previously, at Pharmaceutical Product Development Inc., he served as a Vice President, Global Clinical Operations and Chief Financial and Administrative Officer for International Operations as well as Executive Director and Chief Financial Officer for Europe. Prior to joining PPD, Mr. Shannon has more than 15 years of experience in a variety of financial and accounting positions in the utility industry and multimedia. He has been a Director of PRA Health Sciences, Inc. since January 1, 2010. He holds an Master's in business administration from City University in London and a certification as an accountant by the Association of Chartered Certified Accountants.

CEO Compensation
  • Colin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Colin's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the PRA Health Sciences management team in years:

6.8
Average Tenure
50.5
Average Age
  • The average tenure for the PRA Health Sciences management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Colin Shannon

TITLE
Chairman
COMPENSATION
$8M
AGE
60
TENURE
9.8 yrs

Mike Bonello

TITLE
Executive VP
COMPENSATION
$4M
AGE
49
TENURE
1.5 yrs

Kent Thoelke

TITLE
Executive VP & Chief Scientific Officer

Chris Gaenzle

TITLE
EVP, Chief Administrative Officer & General Counsel
AGE
52

Tom Byrne

TITLE
Vice President of Legal Affairs

Christine Rogers

TITLE
Director of Public Relations & Corporate Communications

Tami Klerr-Naivar

TITLE
Executive VP

Patrick Spine

TITLE
Vice President of Human Resources
AGE
48
TENURE
6.8 yrs

Michael Kirchengast

TITLE
Senior Vice President of Scientific Affairs

David Passov

TITLE
Senior VP & Head of Project Management - EAPA
Board of Directors Tenure

Average tenure and age of the PRA Health Sciences board of directors in years:

4.9
Average Tenure
57
Average Age
  • The tenure for the PRA Health Sciences board of directors is about average.
Board of Directors

Jeff Barber

TITLE
Independent Director
COMPENSATION
$220K
AGE
66
TENURE
5 yrs

Colin Shannon

TITLE
Chairman
COMPENSATION
$8M
AGE
60

Lind Grais

TITLE
Independent Director
COMPENSATION
$228K
AGE
63
TENURE
4.1 yrs

Alex Dickinson

TITLE
Independent Director
COMPENSATION
$200K
AGE
57
TENURE
2.3 yrs

Jim Momtazee

TITLE
Independent Director
AGE
47
TENURE
6.2 yrs

Max Lin

TITLE
Independent Director
AGE
38
TENURE
6.2 yrs

Matt Young

TITLE
Independent Director
COMPENSATION
$210K
AGE
50
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Sep 19 Sell KKR & Co. Inc. Company 06. Sep 19 06. Sep 19 -6,666,684 $97.41 $-649,401,688
X
Management checks
We assess PRA Health Sciences'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. PRA Health Sciences 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.

PRAH News

Simply Wall St News

Is There Now An Opportunity In PRA Health Sciences, Inc. (NASDAQ:PRAH)?

According to my valuation model, PRA Health Sciences seems to be fairly priced at around 16% below my intrinsic value, which means if you buy PRA Health Sciences today, you’d be paying a reasonable price for it. … What does the future of PRA Health Sciences look like? … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

The PRA Health Sciences (NASDAQ:PRAH) Share Price Has Gained 96% And Shareholders Are Hoping For More

(NASDAQ:PRAH) share price is up 96% in the last three years, clearly besting than the market return of around 33% (not including dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, PRA Health Sciences achieved compound earnings per share growth of 25% per year.

Simply Wall St -

Will PRA Health Sciences, Inc.'s (NASDAQ:PRAH) Earnings Grow Over The Next Year?

After PRA Health Sciences, Inc.'s (NASDAQ:PRAH) earnings announcement in March 2019, analyst consensus outlook appear vastly optimistic, with profits predicted to ramp up by an impressive 60% next year, compared with the historical 5-year average growth rate of 54%. … To understand the overall trajectory of PRAH's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NasdaqGS:PRAH Past and Future Earnings, July 22nd 2019 From the current net income level of US$154m and the final forecast of US$341m by 2022, the annual rate of growth for PRAH’s earnings is 18%.

Simply Wall St -

These 4 Measures Indicate That PRA Health Sciences (NASDAQ:PRAH) Is Using Debt Reasonably Well

Either way, since PRA Health Sciences does have more debt than cash, it's worth keeping an eye on its balance sheet. … Over the most recent three years, PRA Health Sciences recorded free cash flow worth 73% of its EBIT, which is around normal, given free cash flow excludes interest and tax. … Our View The good news is that PRA Health Sciences's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler.

Simply Wall St -

Should We Worry About PRA Health Sciences, Inc.'s (NASDAQ:PRAH) P/E Ratio?

View our latest analysis for PRA Health Sciences How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for PRA Health Sciences: P/E of 39.69 = $97.78 ÷ $2.46 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Is PRA Health Sciences, Inc.'s (NASDAQ:PRAH) CEO Being Overpaid?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for PRA Health Sciences How Does Colin Shannon's Compensation Compare With Similar Sized Companies? … I think that the total shareholder return of 85%, over three years, would leave most PRA Health Sciences, Inc.

Simply Wall St -

Should You Investigate PRA Health Sciences, Inc. (NASDAQ:PRAH) At US$87.08?

It’s trading around 17% below my intrinsic value, which means if you buy PRA Health Sciences today, you’d be paying a reasonable price for it. … And if you believe the company’s true value is $104.69, then there isn’t much room for the share price grow beyond what it’s currently trading. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Calculating The Fair Value Of PRA Health Sciences, Inc. (NASDAQ:PRAH)

by projecting its future cash flows and then discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

PRA Health Sciences (NASDAQ:PRAH) Shareholders Have Enjoyed A 88% Share Price Gain

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During three years of share price growth, PRA Health Sciences achieved compound earnings per share growth of 21% per year. … We don't think it is entirely coincidental that the EPS growth is reasonably close to the 23% average annual increase in the share price.

Simply Wall St -

Is PRA Health Sciences, Inc.'s (NASDAQ:PRAH) 15% ROE Better Than Average?

Our data shows PRA Health Sciences has a return on equity of 15% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

PRAH Company Info

Description

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries worldwide. The company operates in two segments, Clinical Research and Data Solutions. The Clinical Research segment offers product registration services, including clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. It also provides strategic solutions, such as embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services for Phase I and Phase IIa studies, and bioanalytical analysis. The Data Solutions segment offers data, analytics, technology, and consulting solutions to the life sciences market. Its services include market intelligence services, such as targeting and compensation, and pharmaceutical audit suite services; consulting and services comprising brand analytics, managed markets, commercial effectiveness, and scientific studies/clinical hubs; and technology-enabled products and services. PRA Health Sciences, Inc. conducts clinical trials in the areas of pharmaceutical development, including oncology, immunology, central nervous system, inflammation, respiratory, cardio metabolic, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. PRA Health Sciences, Inc. was founded in 1976 and is headquartered in Raleigh, North Carolina.

Details
Name: PRA Health Sciences, Inc.
PRAH
Exchange: NasdaqGS
Founded: 1976
$6,435,516,967
63,248,324
Website: http://prahs.com
Address: PRA Health Sciences, Inc.
4130 ParkLake Avenue,
Suite 400,
Raleigh,
North Carolina, 27612,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PRAH Common Stock Nasdaq Global Select US USD 13. Nov 2014
DB 8PH Common Stock Deutsche Boerse AG DE EUR 13. Nov 2014
Number of employees
Current staff
Staff numbers
16,400
PRA Health Sciences employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 00:27
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.