Premier Story

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PINC -- USA Stock  

USD 30.95  0.39  1.28%

Premier is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of November 2020. Premier Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 44,640. The current year Revenue Per Employee is expected to grow to about 511.1 K, whereas Average Assets are forecasted to decline to about 2.6 B. While some of us are becoming more enthusiastic about healthcare space, let's go over Premier in greater detail to make a better estimate of its debt utilization. I will address a few possible reasons investors do not currently respect this stock.
Published over three weeks ago
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You think Premier (NASDAQ:PINC) debt is an issue for investors?
The company currently holds 324.6 M in liabilities with Debt to Equity (D/E) ratio of 2.29, implying Premier greatly relies on financing operations through barrowing. The company holds a Beta of -0.2404, which implies not very significant fluctuations relative to the market. Let's try to break down what Premier's beta means in this case. As returns on the market increase, returns on owning Premier are expected to decrease at a much lower rate. During the bear market, Premier is likely to outperform the market. Although it is extremely important to respect Premier current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Premier technical indicators, you can presently evaluate if the expected return of 0.0032% will be sustainable into the future. Premier right now holds a risk of 2.34%. Please check Premier jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to decide if Premier will be following its historical price patterns.
Premier financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Premier, including all of Premier's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Premier assets, the company is considered highly leveraged. Understanding the composition and structure of overall Premier debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Premier Total Debt

Premier liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Premier has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Premier balance sheet include debt obligations and money owed to different Premier vendors, workers, and loan providers. Below is the chart of Premier main long-term debt accounts currently reported on its balance sheet.
You can use Premier financial leverage analysis tool to get a better grip on understanding its financial position

How important is Premier's Liquidity

Premier financial leverage refers to using borrowed capital as a funding source to finance Premier ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Premier financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Premier's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Premier, but it might be worth checking our own buy vs. sell analysis

Acquisition by Kelli Price of 2438 shares of Premier subject to Rule 16b-3

Legal trades by Premier insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Premier insider trading alert for grant of class a common stock by Kelli Price, Sr. VP of People, on 30th of August 2020. This event was filed by Premier Inc with SEC on 2020-08-27. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Premier

The current indifference towards the small price fluctuations of Premier may encourage investors to take a closer look at the company as it closed today at a share price of 33.53 on 436,171 in trading volume. The company executives did not add any value to Premier investors in July. However, most investors can still diversify their portfolios with Premier to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.34. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Premier unsystematic, company-specific events.

Asset Breakdown

1.4 B
Goodwill
424.3 M
Tax Assets
479.9 M
Current Assets
Total Assets1.91 Billion
Current Assets479.86 Million
Assets Non Current1.88 Billion
Goodwill1.43 Billion
Tax Assets424.3 Million

Premier has 61 percent chance to slip under $34 in the coming weeks

Coefficient of variation is down to 2576.3. It may suggest a possible volatility slip. As of the 25th of August, Premier holds the Semi Deviation of 2.65, coefficient of variation of 2576.3, and Risk Adjusted Performance of 0.0594. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Premier, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Premier, which can be compared to its competitors. Please check Premier variance, as well as the relationship between the maximum drawdown and semi variance to decide if Premier is priced some-what accurately, providing market reflects its current price of 33.7 per share. Given that Premier has jensen alpha of 0.1264, we recommend you to check out Premier's recent market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Premier

Whereas other entities in the health information services industry are either recovering or due for a correction, Premier may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 25th of August 2020, we believe that at this point, Premier is very steady with low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. However, our primary 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Premier. Please refer to our Terms of Use for any information regarding our disclosure principles.

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