LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - US5049221055 - Common Stock
278.18 USD
+1.62 (+0.59%)
277.5 USD
-0.68 (-0.24%)
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 101 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LH had positive earnings in the past year.
LH had a positive operating cash flow in the past year.
Each year in the past 5 years LH has been profitable.
In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.23%, LH is doing good in the industry, outperforming 73.27% of the companies in the same industry.
LH has a Return On Equity of 9.01%. This is in the better half of the industry: LH outperforms 71.29% of its industry peers.
The Return On Invested Capital of LH (5.82%) is better than 62.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROIC | 5.82% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
1.3 Margins
LH has a better Profit Margin (5.66%) than 80.20% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH's Operating Margin of 9.15% is fine compared to the rest of the industry. LH outperforms 78.22% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
LH has a Gross Margin (28.14%) which is in line with its industry peers.
LH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% |
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
LH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LH has less shares outstanding than it did 1 year ago.
LH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.17 indicates that LH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LH (3.17) is better than 65.35% of its industry peers.
The Debt to FCF ratio of LH is 4.48, which is a neutral value as it means it would take LH, 4.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.48, LH is in the better half of the industry, outperforming 75.25% of the companies in the same industry.
LH has a Debt/Equity ratio of 0.61. This is a neutral value indicating LH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, LH is in line with its industry, outperforming 58.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.76
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.50 indicates that LH should not have too much problems paying its short term obligations.
LH has a Current ratio (1.50) which is in line with its industry peers.
A Quick Ratio of 1.32 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio of 1.32. This is comparable to the rest of the industry: LH outperforms 47.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
LH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.87%.
The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
The Revenue has been growing slightly by 7.98% in the past year.
LH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
EPS 1Y (TTM)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
3.2 Future
The Earnings Per Share is expected to grow by 8.64% on average over the next years. This is quite good.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y15.26%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
EPS Next 5Y8.64%
Revenue Next Year7.83%
Revenue Next 2Y6.32%
Revenue Next 3Y5.77%
Revenue Next 5Y4.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.37, LH is valued on the expensive side.
LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 75.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. LH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.33 indicates a correct valuation of LH.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than the industry average as 73.27% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (22.81), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
LH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LH is cheaper than 67.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LH may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)3.54
EPS Next 2Y11.6%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.51. LH pays more dividend than 84.16% of the companies in the same industry.
With a Dividend Yield of 1.04, LH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of LH is nicely growing with an annual growth rate of 96.38%!
LH has been paying a dividend for over 5 years, so it has already some track record.
The dividend of LH decreased in the last 3 years.
Dividend Growth(5Y)96.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LH pays out 31.71% of its income as dividend. This is a sustainable payout ratio.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.71%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
278.18
+1.62 (+0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change1.7%
Ins Owners0.34%
Ins Owner Change0.38%
Market Cap23.12B
Analysts83.45
Price Target300.13 (7.89%)
Short Float %3.32%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP31.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-0.37%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.23%
EPS beat(12)4
Avg EPS beat(12)-0.7%
EPS beat(16)7
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)0
Avg Revenue beat(12)-7.84%
Revenue beat(16)1
Avg Revenue beat(16)-12.95%
PT rev (1m)5.26%
PT rev (3m)7.99%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.71 | ||
| P/FCF | 18.32 | ||
| P/OCF | 13.65 | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.85 |
EPS(TTM)15.14
EY5.44%
EPS(NY)18.15
Fwd EY6.52%
FCF(TTM)15.18
FCFY5.46%
OCF(TTM)20.38
OCFY7.33%
SpS162.26
BVpS101.96
TBVpS-18.93
PEG (NY)1.2
PEG (5Y)3.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROCE | 8.04% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.08% | ||
| ROICexgc | 19.2% | ||
| OM | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% | ||
| FCFM | 9.36% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
ROICexc(3y)6.66%
ROICexc(5y)9.53%
ROICexgc(3y)24.5%
ROICexgc(5y)35.7%
ROCE(3y)8.72%
ROCE(5y)12.25%
ROICexcg growth 3Y-23.52%
ROICexcg growth 5Y-8.03%
ROICexc growth 3Y-23.85%
ROICexc growth 5Y-3.15%
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 45.27% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 77.41% | ||
| Profit Quality | 165.29% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.17 |
F-Score7
WACC7.64%
ROIC/WACC0.76
Cap/Depr(3y)71.23%
Cap/Depr(5y)67.32%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.56%
Profit Quality(3y)157.09%
Profit Quality(5y)139.08%
High Growth Momentum
Growth
EPS 1Y (TTM)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
EPS Next Y15.26%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
EPS Next 5Y8.64%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
Revenue Next Year7.83%
Revenue Next 2Y6.32%
Revenue Next 3Y5.77%
Revenue Next 5Y4.12%
EBIT growth 1Y8.75%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.12%
EBIT Next 3Y14.31%
EBIT Next 5Y11.34%
FCF growth 1Y15.01%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y12.91%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%