LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - NYSE:LH - US5049221055 - Common Stock
252.33 USD
+4.19 (+1.69%)
252.33 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. 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
LH had positive earnings in the past year.
In the past year LH had a positive cash flow from operations.
LH had positive earnings in each of the past 5 years.
In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LH (4.23%) is better than 72.28% of its industry peers.
LH has a Return On Equity of 9.01%. This is in the better half of the industry: LH outperforms 70.30% of its industry peers.
The Return On Invested Capital of LH (5.82%) is better than 61.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.34%.
| 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.
LH's Operating Margin has declined in the last couple of years.
LH's Gross Margin of 28.14% is in line compared to the rest of the industry. LH outperforms 55.45% 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 | 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
LH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LH has less shares outstanding
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 3.01 indicates that LH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LH (3.01) is better than 60.40% 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.
LH's Debt to FCF ratio of 4.48 is fine compared to the rest of the industry. LH outperforms 72.28% of its industry peers.
LH has a Debt/Equity ratio of 0.61. This is a neutral value indicating LH is somewhat dependend on debt financing.
The Debt to Equity ratio of LH (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.68
WACC8.54%
2.3 Liquidity
LH has a Current Ratio of 1.50. 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 (1.50) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that LH should not have too much problems paying its short term obligations.
LH's Quick ratio of 1.32 is in line compared to the rest of the industry. LH outperforms 47.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
LH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.71%, which is quite good.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.20% yearly.
LH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.97%.
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)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
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 9.10% yearly.
The Revenue is expected to grow by 4.12% on average over the next years.
EPS Next Y15.34%
EPS Next 2Y11.5%
EPS Next 3Y10.73%
EPS Next 5Y9.1%
Revenue Next Year7.85%
Revenue Next 2Y6.31%
Revenue Next 3Y5.84%
Revenue Next 5Y4.12%
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
Based on the Price/Earnings ratio of 15.95, the valuation of LH can be described as correct.
LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 79.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (26.76), we can say LH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.93, the valuation of LH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 79.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. LH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 13.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than the industry average as 60.40% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 75.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 13.46 |
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)1.04
PEG (5Y)3.07
EPS Next 2Y11.5%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.11%. 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 2.42. LH pays more dividend than 84.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
31.71% of the earnings are spent on dividend by LH. This is a low number and sustainable payout ratio.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.71%
EPS Next 2Y11.5%
EPS Next 3Y10.73%
252.33
+4.19 (+1.69%)
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 Change0.25%
Ins Owners0.33%
Ins Owner Change-3.21%
Market Cap20.97B
Revenue(TTM)13.01B
Net Income(TTM)763.40M
Analysts83.45
Price Target307.03 (21.68%)
Short Float %2.95%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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%
PT rev (3m)5.45%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 13.93 | ||
| P/S | 1.56 | ||
| P/FCF | 16.62 | ||
| P/OCF | 12.38 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.46 |
EPS(TTM)15.82
EY6.27%
EPS(NY)18.11
Fwd EY7.18%
FCF(TTM)15.18
FCFY6.02%
OCF(TTM)20.38
OCFY8.08%
SpS162.26
BVpS101.96
TBVpS-18.93
PEG (NY)1.04
PEG (5Y)3.07
Graham Number190.5
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%
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-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 | 3.01 |
F-Score7
WACC8.54%
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)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
EPS Next Y15.34%
EPS Next 2Y11.5%
EPS Next 3Y10.73%
EPS Next 5Y9.1%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.85%
Revenue Next 2Y6.31%
Revenue Next 3Y5.84%
Revenue Next 5Y4.12%
EBIT growth 1Y8.75%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.62%
EBIT Next 3Y14.33%
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%
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 5 / 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 5 / 10.
Can you provide the PE and PB ratios for LH stock?
The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 15.95 and the Price/Book (PB) ratio is 2.47.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.