PINC - Embedded Expectations Analysis - 2018 09 20
Premier, Inc. (PINC:USA) currently trades at recent lows relative to UAFRS based (Uniform) Earnings, with a 12.3x Uniform P/E. At these levels, markets are pricing in extremely bearish expectations for the firm, which appears unwarranted, given management's confidence in their work with pharmaceutical manufacturers and providers, overall performance, and new contract agreementsMeanwhile, management is confident in their $250mn stock repurchase plan for 2019. They are also confident in their ability to work with pharmaceutical manufacturers to develop clinical protocols to improve patient care, and to work with providers to improve clinical outcomes and reduce total cost of care. Furthermore, they are confident in their ability to maintain strong performance going forward, and to sustain high growth rates in the specialty pharmacy segment. Additionally, they are confident in their ability to deliver comprehensive cost reduction and clinical analytics as part of their new agreements with two large multi-hospital health system members
Premier is a holding company. The company, together with its subsidiaries and affiliates, is a healthcare performance improvement company. The company provides technology-enabled platform that provides supply chain services, clinical, financial, operational and value based care software-as-a-service informatics products, consulting services and performance improvement collaborative programs. The company has two business segments: Supply Chain Services, which assists its members in managing their non-labor expense and capital spend through a combination of products, services and technologies; and Performance Services, which provides information technology analytics and workflow automation and consulting services.
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