LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - NYSE:LH - US5049221055 - Common Stock
279.62 USD
+4.57 (+1.66%)
279.62 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 101 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LH was profitable.
LH had a positive operating cash flow in the past year.
LH had positive earnings in each of the past 5 years.
LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LH has a better Return On Assets (4.23%) than 72.28% of its industry peers.
The Return On Equity of LH (9.01%) is better than 70.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.82%, LH is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.20%.
| 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 79.21% of its industry peers.
LH's Profit Margin has declined in the last couple of years.
LH has a Operating Margin of 9.15%. This is in the better half of the industry: LH outperforms 77.23% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LH is destroying value.
Compared to 1 year ago, LH has less shares outstanding
Compared to 5 years ago, LH has less shares outstanding
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
LH has an Altman-Z score of 3.15. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
LH has a better Altman-Z score (3.15) than 62.38% 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 72.28% 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.
LH has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.68
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.50 indicates that LH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, LH perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
LH has a Quick Ratio of 1.32. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.32, LH perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.87% over the past year.
The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
Looking at the last year, LH shows a small growth in Revenue. The Revenue has grown by 7.98% in the last 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
Based on estimates for the next years, LH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.10% on average per year.
The Revenue is expected to grow by 4.12% on average over the next years.
EPS Next Y15.34%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
EPS Next 5Y9.1%
Revenue Next Year7.83%
Revenue Next 2Y6.29%
Revenue Next 3Y5.75%
Revenue Next 5Y4.12%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 18.47, LH is valued on the expensive side.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (27.90), we can say LH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.43, the valuation of LH can be described as correct.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 75.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (23.36), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 70.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 14.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.2
PEG (5Y)3.55
EPS Next 2Y11.53%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, LH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.45, LH pays a better dividend. On top of this LH pays more dividend than 84.16% of the companies listed in the same industry.
With a Dividend Yield of 1.03, LH pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of LH grows each year by 96.38%, which is quite nice.
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
31.71% of the earnings are spent on dividend by LH. This is a low number and 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 2Y11.53%
EPS Next 3Y10.79%
279.62
+4.57 (+1.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.29%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change-3.21%
Market Cap23.24B
Analysts83.45
Price Target300.67 (7.53%)
Short Float %3.02%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)0.18%
PT rev (3m)6.75%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 15.43 | ||
| P/S | 1.72 | ||
| P/FCF | 18.42 | ||
| P/OCF | 13.72 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.64 |
EPS(TTM)15.14
EY5.41%
EPS(NY)18.12
Fwd EY6.48%
FCF(TTM)15.18
FCFY5.43%
OCF(TTM)20.38
OCFY7.29%
SpS162.26
BVpS101.96
TBVpS-18.93
PEG (NY)1.2
PEG (5Y)3.55
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 | 2.7 | ||
| Cap/Depr | 64.52% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 89% | ||
| Profit Quality | 165.29% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.15 |
F-Score7
WACC8.51%
ROIC/WACC0.68
Cap/Depr(3y)76.91%
Cap/Depr(5y)70.72%
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 Y15.34%
EPS Next 2Y11.53%
EPS Next 3Y10.79%
EPS Next 5Y9.1%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
Revenue Next Year7.83%
Revenue Next 2Y6.29%
Revenue Next 3Y5.75%
Revenue Next 5Y4.12%
EBIT growth 1Y8.75%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.57%
EBIT Next 3Y14.48%
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%