LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 102 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LH was profitable.
In the past year LH had a positive cash flow from operations.
Each year in the past 5 years LH has been profitable.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
LH's Return On Assets of 4.06% is fine compared to the rest of the industry. LH outperforms 71.57% of its industry peers.
Looking at the Return On Equity, with a value of 9.26%, LH is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.47%, LH is in line with its industry, outperforming 58.82% 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 9.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 9.26% | ||
| ROIC | 5.47% |
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
Looking at the Profit Margin, with a value of 5.73%, LH belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
In the last couple of years the Profit Margin of LH has declined.
LH has a better Operating Margin (8.75%) than 76.47% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.86%, LH perfoms like the industry average, outperforming 53.92% of the companies in the same industry.
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 | 8.75% | ||
| PM (TTM) | 5.73% | ||
| GM | 27.86% |
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.
The number of shares outstanding for LH has been reduced compared to 5 years ago.
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 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 2.85, LH is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
The Debt to FCF ratio of LH is 5.85, which is a neutral value as it means it would take LH, 5.85 years of fcf income to pay off all of its debts.
LH has a better Debt to FCF ratio (5.85) than 63.73% of its industry peers.
LH has a Debt/Equity ratio of 0.67. This is a neutral value indicating LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.72
WACC7.59%
2.3 Liquidity
LH has a Current Ratio of 1.44. 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 Current ratio value of 1.44, LH perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 |
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%.
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 6.97% 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)4.03%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.35%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
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 9.02% on average per year.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y13.4%
EPS Next 2Y11.53%
EPS Next 3Y11.17%
EPS Next 5Y9.02%
Revenue Next Year7.18%
Revenue Next 2Y5.94%
Revenue Next 3Y5.55%
Revenue Next 5Y3.72%
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
With a Price/Earnings ratio of 16.81, LH is valued correctly.
70.59% of the companies in the same industry are more expensive than LH, based on the Price/Earnings ratio.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 13.67, the valuation of LH can be described as correct.
79.41% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.86. LH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 13.67 |
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 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 14.38 |
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)1.26
PEG (5Y)3.24
EPS Next 2Y11.53%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.19%. 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 2.60. LH pays more dividend than 85.29% 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 | 1.19% |
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.
LH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)96.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
32.59% 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.
DP32.59%
EPS Next 2Y11.53%
EPS Next 3Y11.17%
247.66
+6.38 (+2.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change-10.76%
Ins Owners0.34%
Ins Owner Change4.5%
Market Cap20.73B
Analysts84.14
Price Target275.89 (11.4%)
Short Float %3.05%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP32.59%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.77%
Min EPS beat(2)-2.46%
Max EPS beat(2)-1.09%
EPS beat(4)2
Avg EPS beat(4)0.09%
Min EPS beat(4)-2.46%
Max EPS beat(4)2.61%
EPS beat(8)3
Avg EPS beat(8)-0.58%
EPS beat(12)4
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)3.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-2.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.68%
Revenue beat(12)0
Avg Revenue beat(12)-11.33%
Revenue beat(16)3
Avg Revenue beat(16)-12.15%
PT rev (1m)-1.2%
PT rev (3m)2.45%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 13.67 | ||
| P/S | 1.59 | ||
| P/FCF | 18.92 | ||
| P/OCF | 13.07 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)14.73
EY5.95%
EPS(NY)18.12
Fwd EY7.32%
FCF(TTM)13.09
FCFY5.29%
OCF(TTM)18.95
OCFY7.65%
SpS155.42
BVpS96.2
TBVpS-21.58
PEG (NY)1.26
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 9.26% | ||
| ROCE | 7.56% | ||
| ROIC | 5.47% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 22.43% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.73% | ||
| GM | 27.86% | ||
| FCFM | 8.42% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.85 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 76.13% | ||
| Cap/Sales | 3.77% | ||
| Interest Coverage | 5.44 | ||
| Cash Conversion | 89.01% | ||
| Profit Quality | 146.9% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.85 |
F-Score7
WACC7.59%
ROIC/WACC0.72
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 Y13.4%
EPS Next 2Y11.53%
EPS Next 3Y11.17%
EPS Next 5Y9.02%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
Revenue Next Year7.18%
Revenue Next 2Y5.94%
Revenue Next 3Y5.55%
Revenue Next 5Y3.72%
EBIT growth 1Y1.27%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year31.53%
EBIT Next 3Y14.29%
EBIT Next 5Y11.34%
FCF growth 1Y25.37%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y19.44%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%