ICON PLC Return On Equity vs. Current Valuation

ICLR Stock  USD 203.90  8.37  3.94%   
Based on the measurements of profitability obtained from ICON PLC's financial statements, ICON PLC is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess ICON PLC's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.06626469
Current Value
0.11
Quarterly Volatility
0.09231184
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, ICON PLC's Days Sales Outstanding is relatively stable compared to the past year. As of 11/14/2024, EV To Sales is likely to grow to 3.47, while Operating Cash Flow Sales Ratio is likely to drop 0.09. At this time, ICON PLC's Operating Income is relatively stable compared to the past year. As of 11/14/2024, Income Before Tax is likely to grow to about 655.7 M, while Income Tax Expense is likely to drop slightly above 11.2 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.2234
Way Up
Slightly volatile
Net Profit Margin0.07670.0754
Fairly Up
Very volatile
Operating Profit Margin0.0960.1178
Significantly Down
Pretty Stable
Pretax Profit Margin0.130.0769
Way Up
Very volatile
Return On Assets0.03420.036
Notably Down
Pretty Stable
Return On Equity0.110.0663
Way Up
Very volatile
For ICON PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ICON PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ICON PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ICON PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ICON PLC over time as well as its relative position and ranking within its peers.
  

ICON PLC's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
To learn how to invest in ICON Stock, please use our How to Invest in ICON PLC guide.
Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ICON PLC. If investors know ICON will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ICON PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.198
Earnings Share
9
Revenue Per Share
100.52
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0417
The market value of ICON PLC is measured differently than its book value, which is the value of ICON that is recorded on the company's balance sheet. Investors also form their own opinion of ICON PLC's value that differs from its market value or its book value, called intrinsic value, which is ICON PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ICON PLC's market value can be influenced by many factors that don't directly affect ICON PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ICON PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if ICON PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ICON PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ICON PLC Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ICON PLC's current stock value. Our valuation model uses many indicators to compare ICON PLC value to that of its competitors to determine the firm's financial worth.
ICON PLC is rated below average in return on equity category among its peers. It is rated fifth overall in current valuation category among its peers reporting about  246,760,847,647  of Current Valuation per Return On Equity. At this time, ICON PLC's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value ICON PLC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

ICON Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

ICON PLC

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0799
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

ICON PLC

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
19.72 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

ICON Current Valuation vs Competition

ICON PLC is rated fifth overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 197.87 Billion. ICON PLC holds roughly 19.72 Billion in current valuation claiming about 10% of equities under Health Care industry.

ICON PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ICON PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ICON PLC will eventually generate negative long term returns. The profitability progress is the general direction of ICON PLC's change in net profit over the period of time. It can combine multiple indicators of ICON PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-142.3 M-135.2 M
Operating Income956.2 MB
Income Before Tax624.5 M655.7 M
Net Income612.3 M643 M
Income Tax Expense11.7 M11.2 M
Total Other Income Expense Net-331.7 M-315.1 M
Net Income Applicable To Common Shares581.1 M610.2 M
Net Income From Continuing Ops612.3 M336.1 M
Interest IncomeM3.5 M
Net Interest Income-331.7 M-315.1 M
Change To Netincome24.1 M28.2 M
Net Income Per Share 7.46  7.83 
Income Quality 1.90  1.17 
Net Income Per E B T 0.98  0.66 

ICON Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ICON PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ICON PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ICON PLC's important profitability drivers and their relationship over time.

Use ICON PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ICON PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ICON PLC will appreciate offsetting losses from the drop in the long position's value.

ICON PLC Pair Trading

ICON PLC Pair Trading Analysis

The ability to find closely correlated positions to ICON PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ICON PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ICON PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ICON PLC to buy it.
The correlation of ICON PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ICON PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ICON PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ICON PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ICON PLC position

In addition to having ICON PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Construction Thematic Idea Now

Construction
Construction Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
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Additional Tools for ICON Stock Analysis

When running ICON PLC's price analysis, check to measure ICON PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ICON PLC is operating at the current time. Most of ICON PLC's value examination focuses on studying past and present price action to predict the probability of ICON PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ICON PLC's price. Additionally, you may evaluate how the addition of ICON PLC to your portfolios can decrease your overall portfolio volatility.