Growth on Focus: PRA Health Sciences, Inc. (PRAH)

Company Profile:

PRA Health Sciences, Inc., a contract research organization, provides various product development services for pharmaceutical and biotechnology companies worldwide. The company offers integrated services, such as data management, statistical analysis, clinical trial management, and regulatory and drug development consulting. Its services include a suite of product registration services, such as clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. The companys services also comprise strategic solutions, including embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services, including phase I through phase IIa clinical trials and bioanalytical laboratory services. It conducts clinical trials in the areas of pharmaceutical development, comprising oncology, central nervous system, inflammation, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. The company was founded in 1976 and is headquartered in Raleigh, North Carolina. PRA Health Sciences, Inc. is a subsidiary of KKR PRA Investors L.P.

Recent News:

PRA Health Sciences, Inc will release its third quarter 2015 results after the market closes on Monday, November 2, 2015. The Company will also host a conference call on Tuesday, November 3, 2015 at 9:00 a.m. (ET) to discuss the results with members of the investment community.

On Oct. 13, 2015, PRA Health Sciences, Inc. announced the appointment of Linda S. Grais, M.D. to the Board of Directors of the Company. As a member of the Board of Directors, Dr. Grais will also serve on the Audit Committee.

For the three months ended June 30, 2015, service revenue was $336.5 million, which represents growth of 8%, or $25.1 million, compared to the second quarter of 2014 at actual foreign exchange rates. On a constant currency basis, service revenue grew $38.7 million, an increase of 12% compared to the second quarter of 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PRAH’s strengths can be seen in its strong growth and better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 51.41. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate PRA Health Sciences, Inc. (PRAH) a STRONG BUY.