LABORATORY CRP OF AMER HLDGS (LH)
US50540R4092 - Common Stock
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 116 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LH had positive earnings in the past year.
In the past year LH had a positive cash flow from operations.
In the past 5 years LH has always been profitable.
LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.62%, LH is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Equity value of 5.44%, LH is doing good in the industry, outperforming 70.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.53%, LH is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
LH had an Average Return On Invested Capital over the past 3 years of 9.82%. This is in line with the industry average of 8.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 5.44% | ||
| ROIC | 6.53% |
ROA(3y)6.84%
ROA(5y)6.56%
ROE(3y)13.7%
ROE(5y)13.73%
ROIC(3y)9.82%
ROIC(5y)9.93%
1.3 Margins
LH's Profit Margin of 3.52% is fine compared to the rest of the industry. LH outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
Looking at the Operating Margin, with a value of 9.05%, LH belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of LH has declined.
LH has a Gross Margin of 27.74%. This is comparable to the rest of the industry: LH outperforms 52.14% of its industry peers.
In the last couple of years the Gross Margin of LH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.05% | ||
| PM (TTM) | 3.52% | ||
| GM | 27.74% |
OM growth 3Y-24.52%
OM growth 5Y-5.29%
PM growth 3Y-32.41%
PM growth 5Y-15.12%
GM growth 3Y-7.91%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LH is still creating some value.
LH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LH has less shares outstanding
The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.86 indicates that LH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.86, LH is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
LH has a debt to FCF ratio of 7.57. This is a slightly negative value and a sign of low solvency as LH would need 7.57 years to pay back of all of its debts.
LH's Debt to FCF ratio of 7.57 is fine compared to the rest of the industry. LH outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that LH is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.39, LH is doing good in the industry, outperforming 64.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.85
WACC7.66%
2.3 Liquidity
LH has a Current Ratio of 0.88. This is a bad value and indicates that LH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.88, LH is not doing good in the industry: 76.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that LH may have some problems paying its short term obligations.
The Quick ratio of LH (0.76) is worse than 73.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for LH have decreased strongly by -19.50% in the last year.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
The Revenue has decreased by -7.11% in the past year.
Measured over the past years, LH shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)-19.5%
EPS 3Y-15.75%
EPS 5Y5.16%
EPS growth Q2Q-3.66%
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y-4.54%
Revenue growth 5Y1.42%
Revenue growth Q2Q-15.92%
3.2 Future
LH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.08% yearly.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y6.76%
EPS Next 2Y7.56%
EPS Next 3Y8.44%
EPS Next 5Y8.08%
Revenue Next Year5.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.63%
Revenue Next 5Y4.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LH is valuated correctly with a Price/Earnings ratio of 14.87.
Based on the Price/Earnings ratio, LH is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 12.73, the valuation of LH can be described as correct.
Based on the Price/Forward Earnings ratio, LH is valued cheaper than 82.91% of the companies in the same industry.
LH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 12.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than the industry average as 64.96% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 70.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.98 | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LH may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)2.88
EPS Next 2Y7.56%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, LH has a reasonable but not impressive dividend return.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.73. LH pays more dividend than 86.32% of the companies in the same industry.
With a Dividend Yield of 1.35, LH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of LH is nicely growing with an annual growth rate of 52.13%!
LH has been paying a dividend for over 5 years, so it has already some track record.
LH has decreased its dividend recently.
Dividend Growth(5Y)52.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
58.12% of the earnings are spent on dividend by LH. This is a bit on the high side, but may be sustainable.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.12%
EPS Next 2Y7.56%
EPS Next 3Y8.44%
LABORATORY CRP OF AMER HLDGS
NYSE:LH (5/17/2024, 7:10:38 PM)
After market: 210 -0.59 (-0.28%)210.59
-2.54 (-1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 12.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.2
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 5.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.05% | ||
| PM (TTM) | 3.52% | ||
| GM | 27.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.5%
EPS 3Y-15.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y-4.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y