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 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years LH has always been profitable.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.15%, LH is doing good in the industry, outperforming 74.51% of the companies in the same industry.
With a decent Return On Equity value of 8.80%, LH is doing good in the industry, outperforming 71.57% of the companies in the same industry.
LH's Return On Invested Capital of 5.32% is in line compared to the rest of the industry. LH outperforms 57.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LH is below the industry average of 9.59%.
| 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's Profit Margin of 5.55% is amongst the best of the industry. LH outperforms 80.39% of its industry peers.
LH's Profit Margin has declined in the last couple of years.
LH has a Operating Margin of 8.66%. This is in the better half of the industry: LH outperforms 76.47% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH's Gross Margin of 27.89% is in line compared to the rest of the industry. LH outperforms 54.90% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 3.10. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.10, LH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
LH has a debt to FCF ratio of 4.90. This is a neutral value as LH would need 4.90 years to pay back of all of its debts.
LH has a better Debt to FCF ratio (4.90) than 67.65% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, LH perfoms like the industry average, outperforming 53.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.69
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.84 indicates that LH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.84, LH is doing good in the industry, outperforming 69.61% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that LH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.60, LH is doing good in the industry, outperforming 60.78% 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%.
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 7.13% 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)7.13%
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 Y13.77%
EPS Next 2Y11.67%
EPS Next 3Y11.02%
EPS Next 5Y9.02%
Revenue Next Year6.99%
Revenue Next 2Y5.91%
Revenue Next 3Y5.56%
Revenue Next 5Y3.72%
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
A Price/Earnings ratio of 16.83 indicates a correct valuation of LH.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.29. LH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.64, the valuation of LH can be described as correct.
LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (22.17), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
68.63% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.01 | ||
| EV/EBITDA | 14.53 |
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)1.22
PEG (5Y)3.24
EPS Next 2Y11.67%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, 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 2.45. LH pays more dividend than 85.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.2%
EPS Next 2Y11.67%
EPS Next 3Y11.02%
247.85
-1.12 (-0.45%)
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-10.25%
Ins Owners0.34%
Ins Owner Change4.31%
Market Cap20.75B
Analysts84.14
Price Target277.93 (12.14%)
Short Float %3.53%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)0.74%
PT rev (3m)0.68%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 13.64 | ||
| P/S | 1.57 | ||
| P/FCF | 18.01 | ||
| P/OCF | 12.7 | ||
| P/B | 2.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.53 |
EPS(TTM)14.73
EY5.94%
EPS(NY)18.17
Fwd EY7.33%
FCF(TTM)13.76
FCFY5.55%
OCF(TTM)19.52
OCFY7.88%
SpS157.44
BVpS99.25
TBVpS-19.13
PEG (NY)1.22
PEG (5Y)3.24
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 | 3.1 |
F-Score8
WACC7.65%
ROIC/WACC0.69
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 Y13.77%
EPS Next 2Y11.67%
EPS Next 3Y11.02%
EPS Next 5Y9.02%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
Revenue Next Year6.99%
Revenue Next 2Y5.91%
Revenue Next 3Y5.56%
Revenue Next 5Y3.72%
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%