This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.
The market is worried about PINC’s legacy business being sick, and is not capturing the strong momentum in their execution into a stickier higher value add business
Market expectations for PINC are currently very pessimistic. The market is expecting
UAFRS-based (Uniform) ROA (ROA’) to fade from 78% in 2018 to 43% in 2023, with Uniform Asset growth slowing to 10% a year going forward. The market appears to be concerned about their legacy GPO business and competition there, while the company has been focused on building other businesses around their GPO business, to defend that moat and expand to higher value add services.