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1. Company Snapshot

1.a. Company Description

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States.It operates in two segments, Supply Chain Services and Performance Services.The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions.


This segment also provides the ASCENDrive programs for members to receive group purchasing programs, tiers, and prices; SURPASS Performance Group services; STOCKD, an e-commerce platform; PROVIDEGX program, which identifies supply sources for drugs that are on or may be at risk of being added to the national drug shortage list, or that are vulnerable to pricing volatility, as well as direct sourcing business; SaaS informatics products; supply chain co-management services; purchased services contracts; direct sourcing solutions; and supply chain resiliency programs.The Performance Services segment provides technology and services platform with offerings that help optimize performance in three main areas, including clinical intelligence, margin improvement, and value-based care under the PINC AI brand; third party administrator services and management of health benefit programs under the Contigo Health brand; and digital invoicing and payables services that offers financial support services to healthcare product suppliers and service providers under the Remitra brand.The company also provides services to other businesses, including food service, schools, and universities.


Premier, Inc.was incorporated in 2013 and is headquartered in Charlotte, North Carolina.

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1.b. Last Insights on PINC

Premier, Inc.'s recent performance was positively driven by its Q4 earnings beat, with quarterly earnings of $0.46 per share exceeding the Zacks Consensus Estimate of $0.34 per share. The company's fiscal-year2025 fourth-quarter total net revenue was $262.9 million, decreasing 12% from the prior-year period but increasing 1% sequentially. Additionally, Premier's acquisition of IllumiCare expanded its clinical decision support capabilities. The company's solid earnings report and strategic expansion efforts likely contributed to its recent performance.

1.c. Company Highlights

2. Premier Inc. Exceeds Expectations with Strong Q4 and FY2025 Results

Premier Inc. reported strong fiscal 2025 fourth-quarter and full-year results, exceeding expectations. Revenue and profitability were driven by better-than-anticipated performance in the Supply Chain Services segment, where contract penetration and new member spend improved. The company returned meaningful capital to stockholders through dividends and a share repurchase program. Adjusted EPS came in at $0.43, beating estimates of $0.34.

Publication Date: Aug -19

📋 Highlights
  • Revenue Growth & Margin Expansion:: Supply Chain Services revenue grew 1% sequentially in Q4 FY2025, with fee share expected to reach mid-60% in FY2026, up from previous ranges.
  • Free Cash Flow Outperformance:: Generated $181M in free cash flow FY2025, exceeding guidance, with 70–80% conversion expected in FY2026.
  • Advisory Services Growth:: Advisory deals to drive >25% revenue growth in FY2026, including four large contracts averaging $5M annually.
  • IllumiCare Acquisition Impact:: Projected to generate $8–10M in FY2026 revenue and break even on the bottom line.
  • 2026 Guidance:: Total net revenue of $940M–$1B, adjusted EPS of $1.33–$1.43, with EBITDA growth resuming in FY2027.

Supply Chain Services Strength Drives Performance

In the Supply Chain Services segment, revenue grew 1% sequentially, driven by higher contract penetration and onboarding of new members. The company made progress in contract negotiations with GPO members, with less than 20% of fees remaining to be addressed in fiscal 2026. Fee share is expected to increase to the mid-60% range in fiscal 2026 and stabilize in the high 60s once all renewals are addressed.

Advisory Business Poised for Growth

In the Performance Services segment, the company delivered sequential improvement in its advisory business, although it was lower compared to the prior year period. The company has a robust pipeline of opportunities and expects its advisory business to return to double-digit growth in fiscal 2026. As Dave Zito emphasized, "Premier's advisory services drive significant change for health systems, and its technology helps codify this change within the workflow."

Free Cash Flow and Capital Deployment

Free cash flow was $181 million, exceeding expectations, and the company expects free cash flow conversion in the range of 70% to 80% in fiscal 2026. The company's capital deployment priorities include driving revenue growth through organic investments and potential tuck-in acquisitions.

Guidance and Outlook

Guidance for fiscal 2026 includes total net revenue of $940 million to $1 billion, adjusted EBITDA of $230 million to $245 million, and adjusted EPS of $1.33 to $1.43. The company expects an inflection back to growth in key consolidated financial metrics in fiscal 2027.

Valuation Metrics

With a P/E Ratio of 36.56, P/B Ratio of 1.5, and EV/EBITDA of 12.51, Premier Inc.'s stock appears to be fairly valued. The company's dividend yield of 3.2% and free cash flow yield of 15.07% suggest a decent return for investors. However, with analysts estimating a -1.7% revenue growth for next year, the stock's valuation may be subject to revisions.

3. NewsRoom

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Premier Graphene Inc. ($BIEI) Secures Final “COFEPRIS” Authorization Permitting its Partners to Commence Importation and Registration of CBD, CBG, and Cannabinoid Products in Mexico

Dec -01

Source: prismmediawire.com

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Ameritas Investment Partners Inc. Takes $205,000 Position in Premier, Inc. $PINC

Dec -01

Source: defenseworld.net

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Premier African Minerals raises £500,000 as Zulu funding pressures mount

Nov -27

Source: proactiveinvestors.co.uk

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American Century Companies Inc. Grows Position in Premier, Inc. $PINC

Nov -27

Source: defenseworld.net

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Patient Square Capital Completes Acquisition of Premier, Inc.

Nov -25

Source: businesswire.com

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Sandisk Set to Join S&P 500; Upwork, First Interstate BancSystem, PTC Therapeutics to Join S&P SmallCap 600

Nov -24

Source: prnewswire.com

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Premier, Inc. Stockholders Overwhelmingly Approve Acquisition by Patient Square Capital

Nov -21

Source: businesswire.com

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OTCID: GREH Achieves Major National Milestone With 29 EV Charging Projects Across Premier U.S. Hotel Destinations

Nov -20

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.35%)

6. Segments

Supply Chain Services

Expected Growth: 3%

Premier, Inc.'s Supply Chain Services segment growth is driven by increasing adoption of group purchasing organizations, rising demand for cost-saving solutions, and expansion into new markets. Additionally, the company's data analytics capabilities and consulting services are in high demand, contributing to the segment's growth.

Performance Services

Expected Growth: 1%

Premier, Inc.'s Performance Services segment growth is driven by increasing demand for cost reduction and operational efficiency in the healthcare industry, coupled with the company's expertise in data analytics and advisory services. Additionally, the segment benefits from the shift towards value-based care, leading to higher adoption of Premier's performance improvement solutions.

Eliminations

Expected Growth: 0%

Premier, Inc.'s eliminations segment shows 0% growth, driven by stagnant hospital and health system membership, flat supply chain services revenue, and lack of new contract wins. Additionally, increased competition from rival group purchasing organizations and softness in the healthcare industry have contributed to the stagnant growth.

7. Detailed Products

PremierConnect

A comprehensive data and analytics platform that provides insights to improve healthcare operations, reduce costs, and enhance patient care.

Supply Chain Services

A suite of services that help healthcare providers optimize their supply chain operations, including group purchasing, logistics, and inventory management.

Performance Services

A range of services that help healthcare providers improve their operational and financial performance, including consulting, analytics, and advisory services.

Population Health Management

A suite of solutions that help healthcare providers manage population health, including data analytics, care coordination, and patient engagement.

Quality and Safety

A range of solutions that help healthcare providers improve patient safety and quality of care, including clinical decision support, quality metrics, and patient safety analytics.

8. Premier, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Premier, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Premier, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative suppliers and the customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Premier, Inc. has a diverse supplier base, which reduces the bargaining power of suppliers. The company's strong relationships with suppliers also mitigate the risk of supply chain disruptions.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry in the industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The healthcare industry is highly competitive, and Premier, Inc. faces intense rivalry from established players. The company's strong brand recognition and customer loyalty help to mitigate the impact of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.87%
Debt Cost 4.70%
Equity Weight 84.13%
Equity Cost 5.88%
WACC 5.69%
Leverage 18.86%

11. Quality Control: Premier, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Spok

A-Score: 7.1/10

Value: 5.5

Growth: 4.9

Quality: 7.9

Yield: 10.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Premier

A-Score: 5.6/10

Value: 4.0

Growth: 2.1

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
HealthStream

A-Score: 4.8/10

Value: 3.7

Growth: 5.2

Quality: 6.9

Yield: 0.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Forian

A-Score: 4.3/10

Value: 6.0

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
National Research

A-Score: 4.0/10

Value: 3.4

Growth: 3.6

Quality: 6.0

Yield: 6.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Simulations Plus

A-Score: 3.0/10

Value: 5.6

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.26$

Current Price

28.26$

Potential

-0.00%

Expected Cash-Flows