LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of LH get a neutral evaluation. Nothing too spectacular is happening here. LH has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
LH's Return On Assets of 4.15% is fine compared to the rest of the industry. LH outperforms 74.76% of its industry peers.
The Return On Equity of LH (8.80%) is better than 70.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.32%, LH is in line with its industry, outperforming 57.28% of the companies in the same industry.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.8% | ||
| ROIC | 5.32% |
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 (5.55%) than 79.61% of its industry peers.
LH's Profit Margin has declined in the last couple of years.
LH has a better Operating Margin (8.66%) than 76.70% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH has a Gross Margin of 27.89%. This is comparable to the rest of the industry: LH outperforms 54.37% 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 | 8.66% | ||
| PM (TTM) | 5.55% | ||
| GM | 27.89% |
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.
The number of shares outstanding for LH has been reduced compared to 1 year ago.
Compared to 5 years ago, LH has less shares outstanding
LH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.17 indicates that LH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.17, LH is doing good in the industry, outperforming 68.93% of the companies in the same industry.
The Debt to FCF ratio of LH is 4.90, which is a neutral value as it means it would take LH, 4.90 years of fcf income to pay off all of its debts.
LH has a better Debt to FCF ratio (4.90) than 67.96% of its industry peers.
LH has a Debt/Equity ratio of 0.68. This is a neutral value indicating LH is somewhat dependend on debt financing.
The Debt to Equity ratio of LH (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.68
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.84 indicates that LH should not have too much problems paying its short term obligations.
LH has a Current ratio of 1.84. This is in the better half of the industry: LH outperforms 67.96% of its industry peers.
LH has a Quick Ratio of 1.60. 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 decent Quick ratio value of 1.60, LH is doing good in the industry, outperforming 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
LH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.03%.
Measured over the past 5 years, LH shows a small growth in Earnings Per Share. The EPS has been growing by 5.20% on average per year.
The Revenue has been growing slightly by 7.13% 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)4.03%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.35%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
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 8.88% yearly.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y13.79%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
EPS Next 5Y8.88%
Revenue Next Year7%
Revenue Next 2Y5.9%
Revenue Next 3Y5.54%
Revenue Next 5Y3.92%
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
The Price/Earnings ratio is 17.78, which indicates a rather expensive current valuation of LH.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than 72.82% of the companies in the same industry.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 14.41 indicates a correct valuation of LH.
LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 76.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 14.41 |
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 65.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.03 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
LH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)3.42
EPS Next 2Y11.7%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, 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 2.43. LH pays more dividend than 84.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 33.20% of its income as dividend. This is a sustainable payout ratio.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.2%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
261.88
+0.49 (+0.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-10.25%
Ins Owners0.35%
Ins Owner Change4.14%
Market Cap21.92B
Analysts84.14
Price Target281.65 (7.55%)
Short Float %3.73%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP33.2%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.73%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.37%
EPS beat(4)1
Avg EPS beat(4)-0.66%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.29%
EPS beat(8)3
Avg EPS beat(8)0.15%
EPS beat(12)4
Avg EPS beat(12)-0.62%
EPS beat(16)7
Avg EPS beat(16)2.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.83%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)0
Avg Revenue beat(12)-9.72%
Revenue beat(16)2
Avg Revenue beat(16)-12.63%
PT rev (1m)1.34%
PT rev (3m)2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 14.41 | ||
| P/S | 1.66 | ||
| P/FCF | 19.03 | ||
| P/OCF | 13.41 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)14.73
EY5.62%
EPS(NY)18.18
Fwd EY6.94%
FCF(TTM)13.76
FCFY5.26%
OCF(TTM)19.52
OCFY7.46%
SpS157.44
BVpS99.25
TBVpS-19.13
PEG (NY)1.29
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.8% | ||
| ROCE | 7.35% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 15.7% | ||
| OM | 8.66% | ||
| PM (TTM) | 5.55% | ||
| GM | 27.89% | ||
| FCFM | 8.74% |
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-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 73.51% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 90.91% | ||
| Profit Quality | 157.64% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.17 |
F-Score8
WACC7.83%
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)4.03%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.35%
EPS Next Y13.79%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
EPS Next 5Y8.88%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
Revenue Next Year7%
Revenue Next 2Y5.9%
Revenue Next 3Y5.54%
Revenue Next 5Y3.92%
EBIT growth 1Y2.57%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.23%
EBIT Next 3Y14.57%
EBIT Next 5Y11.34%
FCF growth 1Y-8.75%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y-5.05%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%