LABORATORY CRP OF AMER HLDGS (LH)
US50540R4092 - Common Stock
LH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 117 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 valuation in line with the averages, but it does not seem to be growing.
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.
LH had positive earnings in each of the past 5 years.
LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.50%, LH is in the better half of the industry, outperforming 69.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.31%, LH is in the better half of the industry, outperforming 69.83% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.22%, LH is doing good in the industry, outperforming 69.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LH is in line with the industry average of 8.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 5.31% | ||
| ROIC | 6.22% |
ROA(3y)6.84%
ROA(5y)6.56%
ROE(3y)13.7%
ROE(5y)13.73%
ROIC(3y)9.82%
ROIC(5y)9.93%
1.3 Margins
Looking at the Profit Margin, with a value of 3.24%, LH is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Profit Margin of LH has declined.
The Operating Margin of LH (8.81%) is better than 85.34% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH has a Gross Margin of 27.05%. This is comparable to the rest of the industry: LH outperforms 52.59% of its industry peers.
LH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.81% | ||
| PM (TTM) | 3.24% | ||
| GM | 27.05% |
OM growth 3Y-24.52%
OM growth 5Y-5.29%
PM growth 3Y-32.41%
PM growth 5Y-15.12%
GM growth 3Y-7.91%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LH is still creating some value.
Compared to 1 year ago, LH has less shares outstanding
LH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
LH has an Altman-Z score of 2.83. This is not the best score and indicates that LH is in the grey zone with still only limited risk for bankruptcy at the moment.
LH's Altman-Z score of 2.83 is fine compared to the rest of the industry. LH outperforms 71.55% of its industry peers.
LH has a debt to FCF ratio of 5.88. This is a neutral value as LH would need 5.88 years to pay back of all of its debts.
LH has a better Debt to FCF ratio (5.88) than 71.55% of its industry peers.
LH has a Debt/Equity ratio of 0.52. This is a neutral value indicating LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: LH outperforms 59.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.79
WACC7.84%
2.3 Liquidity
LH has a Current Ratio of 1.17. 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 (1.17) is worse than 62.07% of its industry peers.
LH has a Quick Ratio of 1.02. 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 1.02 is on the low side compared to the rest of the industry. LH is outperformed by 62.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
LH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.07%.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
Looking at the last year, LH shows a decrease in Revenue. The Revenue has decreased by -3.46% in the last year.
The Revenue has been growing slightly by 1.42% on average over the past years.
EPS 1Y (TTM)-28.07%
EPS 3Y-15.75%
EPS 5Y5.16%
EPS growth Q2Q-20.29%
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y-4.54%
Revenue growth 5Y1.42%
Revenue growth Q2Q-17.44%
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 16.36% on average per year.
The Revenue is expected to decrease by -0.25% on average over the next years.
EPS Next Y6.76%
EPS Next 2Y7.56%
EPS Next 3Y8.44%
EPS Next 5Y16.36%
Revenue Next Year5.02%
Revenue Next 2Y4.69%
Revenue Next 3Y4.63%
Revenue Next 5Y-0.25%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.87, which indicates a correct valuation of LH.
LH's Price/Earnings ratio is rather cheap when compared to the industry. LH is cheaper than 88.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (24.84), we can say LH is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.00 indicates a correct valuation of LH.
Based on the Price/Forward Earnings ratio, LH is valued cheaper than 86.21% of the companies in the same industry.
LH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 70.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.1 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)2.69
EPS Next 2Y7.56%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.45%.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.73. LH pays more dividend than 86.21% of the companies in the same industry.
LH's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
On average, the dividend of LH grows each year by 52.13%, 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 recently.
Dividend Growth(5Y)52.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
60.77% of the earnings are spent on dividend by LH. This is not a sustainable payout ratio.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.77%
EPS Next 2Y7.56%
EPS Next 3Y8.44%
LABORATORY CRP OF AMER HLDGS
NYSE:LH (4/26/2024, 7:04:00 PM)
After market: 198.4 0 (0%)198.4
+0.05 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.05
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 5.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.81% | ||
| PM (TTM) | 3.24% | ||
| GM | 27.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.07%
EPS 3Y-15.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.46%
Revenue growth 3Y-4.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y