LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
258.39 USD
-3.09 (-1.18%)
258.39 USD
0 (0%)
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 101 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
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
LH has a better Return On Assets (4.68%) than 76.24% of its industry peers.
LH has a Return On Equity of 9.83%. This is in the better half of the industry: LH outperforms 72.28% of its industry peers.
LH has a Return On Invested Capital of 6.32%. This is in the better half of the industry: LH outperforms 64.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.22%.
The last Return On Invested Capital (6.32%) for LH is above the 3 year average (6.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROIC | 6.32% |
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 Profit Margin of 6.21%. This is amongst the best in the industry. LH outperforms 82.18% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH's Operating Margin of 9.92% is fine compared to the rest of the industry. LH outperforms 77.23% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 28.45%, LH perfoms like the industry average, outperforming 55.45% 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 | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% |
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
LH has an Altman-Z score of 3.12. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.12, LH is doing good in the industry, outperforming 66.34% of the companies in the same industry.
The Debt to FCF ratio of LH is 4.09, which is a neutral value as it means it would take LH, 4.09 years of fcf income to pay off all of its debts.
LH has a better Debt to FCF ratio (4.09) than 70.30% of its industry peers.
LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
LH's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. LH outperforms 57.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.78
WACC8.15%
2.3 Liquidity
LH has a Current Ratio of 1.55. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LH (1.55) is comparable to the rest of the industry.
LH has a Quick Ratio of 1.35. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
LH's Quick ratio of 1.35 is in line compared to the rest of the industry. LH outperforms 54.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.71% over the past year.
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.
Looking at the last year, LH shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
The Revenue has been growing slightly by 2.40% on average over the past years.
EPS 1Y (TTM)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
3.2 Future
LH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
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 16.33.
79.21% of the companies in the same industry are more expensive than LH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (26.46), we can say LH is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.32 indicates a correct valuation of LH.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 79.21% of the companies in the same industry.
LH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LH is cheaper than 60.40% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 73.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.51 | ||
| EV/EBITDA | 14.02 |
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)1.06
PEG (5Y)3.14
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, 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 2.47. LH pays more dividend than 85.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 28.24% 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.
DP28.24%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
258.39
-3.09 (-1.18%)
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 Change-2.19%
Ins Owners0.33%
Ins Owner Change-2.8%
Market Cap21.42B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target305.58 (18.26%)
Short Float %3.89%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP28.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.84%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.49%
Min EPS beat(4)-1.84%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.27%
EPS beat(12)4
Avg EPS beat(12)-0.63%
EPS beat(16)6
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.35%
Revenue beat(12)0
Avg Revenue beat(12)-5.86%
Revenue beat(16)0
Avg Revenue beat(16)-13.64%
PT rev (1m)-0.47%
PT rev (3m)1.82%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.56 | ||
| P/FCF | 15.51 | ||
| P/OCF | 11.88 | ||
| P/B | 2.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)15.82
EY6.12%
EPS(NY)18.05
Fwd EY6.99%
FCF(TTM)16.66
FCFY6.45%
OCF(TTM)21.76
OCFY8.42%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.06
PEG (5Y)3.14
Graham Number193.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROCE | 8.73% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 20.66% | ||
| OM | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% | ||
| FCFM | 10.03% |
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%
ROICexgc growth 3Y-23.52%
ROICexgc 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-Score9
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 77.99% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 5.52 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 161.46% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.12 |
F-Score9
WACC8.15%
ROIC/WACC0.78
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)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.28%
EBIT Next 3Y14.33%
EBIT Next 5Y12.85%
FCF growth 1Y38.44%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y28.67%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%
LABCORP HOLDINGS INC / LH FAQ
Can you provide the ChartMill fundamental rating for LABCORP HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to LH.
What is the valuation status of LABCORP HOLDINGS INC (LH) stock?
ChartMill assigns a valuation rating of 6 / 10 to LABCORP HOLDINGS INC (LH). This can be considered as Fairly Valued.
What is the profitability of LH stock?
LABCORP HOLDINGS INC (LH) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for LH stock?
The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 16.33 and the Price/Book (PB) ratio is 2.46.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.