LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
260.4 USD
+7.22 (+2.85%)
260.4 USD
0 (0%)
LH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. LH has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of LH (4.68%) is better than 75.25% of its industry peers.
With a decent Return On Equity value of 9.83%, LH is doing good in the industry, outperforming 71.29% of the companies in the same industry.
LH has a better Return On Invested Capital (6.32%) than 63.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.21%.
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's Profit Margin of 6.21% is amongst the best of the industry. LH outperforms 83.17% of its industry peers.
LH's Profit Margin has declined in the last couple of years.
LH has a better Operating Margin (9.92%) than 79.21% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
The Gross Margin of LH (28.45%) is comparable to the rest of the 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
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
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
LH has an Altman-Z score of 3.08. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
LH has a Altman-Z score of 3.08. This is in the better half of the industry: LH outperforms 65.35% of its industry peers.
LH has a debt to FCF ratio of 4.09. This is a neutral value as LH would need 4.09 years to pay back of all of its debts.
LH's Debt to FCF ratio of 4.09 is fine compared to the rest of the industry. LH outperforms 69.31% 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 has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.76
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, LH is in line with its industry, outperforming 58.42% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio of 1.35. This is comparable to the rest of the industry: LH outperforms 55.45% 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.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.20% yearly.
The Revenue has grown by 8.28% in the past year. This is quite good.
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.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.41%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
EPS Next 5Y7.98%
Revenue Next Year7.76%
Revenue Next 2Y6.07%
Revenue Next 3Y5.68%
Revenue Next 5Y4.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 16.46, which indicates a correct valuation of LH.
Based on the Price/Earnings ratio, LH is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.17. LH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.45, LH is valued correctly.
Based on the Price/Forward Earnings ratio, LH is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 62.38% 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 74.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.63 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
LH's 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)1.07
PEG (5Y)3.17
EPS Next 2Y11.22%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.15%. 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 0.60. LH pays more dividend than 86.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of LH grows each year by 96.38%, which is quite nice.
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
28.24% 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.
DP28.24%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
260.4
+7.22 (+2.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.13%
Inst Owner Change0%
Ins Owners0.31%
Ins Owner Change-2.44%
Market Cap21.59B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (17.42%)
Short Float %3.82%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP28.24%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.06%
PT rev (3m)1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.45 | ||
| P/S | 1.57 | ||
| P/FCF | 15.63 | ||
| P/OCF | 11.97 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.66 |
EPS(TTM)15.82
EY6.08%
EPS(NY)18.02
Fwd EY6.92%
FCF(TTM)16.66
FCFY6.4%
OCF(TTM)21.76
OCFY8.35%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.07
PEG (5Y)3.17
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 | 3.08 |
F-Score9
WACC8.35%
ROIC/WACC0.76
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 2Y11.22%
EPS Next 3Y10.52%
EPS Next 5Y7.98%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.76%
Revenue Next 2Y6.07%
Revenue Next 3Y5.68%
Revenue Next 5Y4.05%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.67%
EBIT Next 3Y14.29%
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
What is the ChartMill fundamental rating of LABCORP HOLDINGS INC (LH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LH.
What is the valuation status for 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.
What is the valuation of LABCORP HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 16.46 and the Price/Book (PB) ratio is 2.48.
What is the expected EPS growth for LABCORP HOLDINGS INC (LH) stock?
The Earnings per Share (EPS) of LABCORP HOLDINGS INC (LH) is expected to grow by 15.41% in the next year.