LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
LH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. 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.
LH had a positive operating cash flow in the past year.
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
The Return On Assets of LH (4.15%) is better than 74.76% of its industry peers.
Looking at the Return On Equity, with a value of 8.80%, LH is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
LH has a Return On Invested Capital (5.32%) which is comparable to the rest of the industry.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.70%.
| 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 has a Profit Margin of 5.55%. This is in the better half of the industry: LH outperforms 79.61% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
Looking at the Operating Margin, with a value of 8.66%, LH is in the better half of the industry, outperforming 76.70% of the companies in the same industry.
LH's Operating Margin has declined in the last couple of years.
LH has a Gross Margin (27.89%) which is in line with its industry peers.
LH's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, LH has less shares outstanding
LH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
LH has an Altman-Z score of 3.11. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
LH's Altman-Z score of 3.11 is fine compared to the rest of the industry. LH outperforms 65.05% of its industry peers.
The Debt to FCF ratio of LH is 4.90, which is a neutral value as it means it would take LH, 4.90 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LH (4.90) is better than 67.96% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LH is somewhat dependend on debt financing.
LH's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. LH outperforms 52.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.69
WACC7.67%
2.3 Liquidity
LH has a Current Ratio of 1.84. 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 decent Current ratio value of 1.84, LH is doing good in the industry, outperforming 66.99% of the companies in the same industry.
LH has a Quick Ratio of 1.60. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.60, LH is in line with its industry, outperforming 59.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.03% 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 small growth in Revenue. The Revenue has grown by 7.13% in the last year.
Measured over the past years, LH shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
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
The Earnings Per Share is expected to grow by 8.88% on average over the next years. This is quite good.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y13.78%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
EPS Next 5Y8.88%
Revenue Next Year7%
Revenue Next 2Y5.88%
Revenue Next 3Y5.49%
Revenue Next 5Y3.92%
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
LH is valuated rather expensively with a Price/Earnings ratio of 17.11.
Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 72.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (27.53), we can say LH is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of LH.
73.79% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
LH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 65.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| EV/EBITDA | 14.67 |
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)1.24
PEG (5Y)3.29
EPS Next 2Y11.55%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, LH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, LH pays a better dividend. On top of this LH pays more dividend than 84.47% of the companies listed in the same industry.
With a Dividend Yield of 1.16, LH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.2%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
252.07
+9.03 (+3.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-0.94%
Ins Owners0.35%
Ins Owner Change4.2%
Market Cap21.10B
Analysts84.14
Price Target285.13 (13.12%)
Short Float %4.27%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)2%
PT rev (3m)2.13%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 13.9 | ||
| P/S | 1.6 | ||
| P/FCF | 18.31 | ||
| P/OCF | 12.91 | ||
| P/B | 2.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.67 |
EPS(TTM)14.73
EY5.84%
EPS(NY)18.13
Fwd EY7.19%
FCF(TTM)13.76
FCFY5.46%
OCF(TTM)19.52
OCFY7.75%
SpS157.44
BVpS99.25
TBVpS-19.13
PEG (NY)1.24
PEG (5Y)3.29
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 | 3.11 |
F-Score8
WACC7.67%
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 Y13.78%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
EPS Next 5Y8.88%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
Revenue Next Year7%
Revenue Next 2Y5.88%
Revenue Next 3Y5.49%
Revenue Next 5Y3.92%
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%