IQV - IQVIA: Long-Term Compounder Throwing Off Free Cash Flow

2024-05-27 15:57:02 ET

Summary

• There have been numerous positive updates to IQVIA Holdings' fundamental economics since January 2023.
• It produced strong Q1 2024 earnings, with growth observed in all segments.
• Increasing returns from margin growth and capital productivity are driving exceptional free cash flow production.

Investment Summary

Since my last publication on IQVIA Holdings Inc. ( IQV ) in January 2023, there have been multiple positive updates to the company's fundamental economics.

Last time, I commented on the company's strengths in unlocking risk capital for shareholders, namely via 1) exceptional net operating profit after tax relative to the capital invested to produce these numbers, 2) decompression of post-tax margins with increasing capital turnover, and 3) the company's propensity to throw off stable, high amounts of free cash flow to its owners....

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