LHC GROUP INC (LHCG) Fundamental Analysis & Valuation

NASDAQ:LHCG • US50187A1079

Current stock price

169.81 USD
+0.8 (+0.47%)
At close:
169.81 USD
0 (0%)
After Hours:

This LHCG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. LHCG Profitability Analysis

1.1 Basic Checks

  • LHCG had positive earnings in the past year.
  • LHCG had a negative operating cash flow in the past year.
LHCG Yearly Net Income VS EBIT VS OCF VS FCFLHCG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 200M 400M

1.2 Ratios

  • LHCG has a Return On Assets of 2.16%. This is in the better half of the industry: LHCG outperforms 66.09% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.94%, LHCG is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
  • LHCG has a Return On Invested Capital of 4.20%. This is in the better half of the industry: LHCG outperforms 62.61% of its industry peers.
Industry RankSector Rank
ROA 2.16%
ROE 3.94%
ROIC 4.2%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
LHCG Yearly ROA, ROE, ROICLHCG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2 4 6 8 10

1.3 Margins

  • LHCG has a Profit Margin of 2.73%. This is in the better half of the industry: LHCG outperforms 65.22% of its industry peers.
  • In the last couple of years the Profit Margin of LHCG has grown nicely.
  • LHCG's Operating Margin of 6.15% is fine compared to the rest of the industry. LHCG outperforms 68.70% of its industry peers.
  • In the last couple of years the Operating Margin of LHCG has grown nicely.
  • With a decent Gross Margin value of 38.62%, LHCG is doing good in the industry, outperforming 68.70% of the companies in the same industry.
  • In the last couple of years the Gross Margin of LHCG has remained more or less at the same level.
Industry RankSector Rank
OM 6.15%
PM (TTM) 2.73%
GM 38.62%
OM growth 3Y2.47%
OM growth 5Y2.07%
PM growth 3Y14.06%
PM growth 5Y5.1%
GM growth 3Y3.28%
GM growth 5Y0.9%
LHCG Yearly Profit, Operating, Gross MarginsLHCG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 10 20 30

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5

2. LHCG Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LHCG is destroying value.
  • The number of shares outstanding for LHCG has been reduced compared to 1 year ago.
  • Compared to 1 year ago, LHCG has a worse debt to assets ratio.
LHCG Yearly Shares OutstandingLHCG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 10M 20M 30M
LHCG Yearly Total Debt VS Total AssetsLHCG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 3.80 indicates that LHCG is not in any danger for bankruptcy at the moment.
  • LHCG has a Altman-Z score of 3.80. This is amongst the best in the industry. LHCG outperforms 80.87% of its industry peers.
  • LHCG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
  • LHCG has a Debt to Equity ratio of 0.46. This is in the better half of the industry: LHCG outperforms 64.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF N/A
Altman-Z 3.8
ROIC/WACC0.5
WACC8.35%
LHCG Yearly LT Debt VS Equity VS FCFLHCG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.45 indicates that LHCG should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.45, LHCG is in line with its industry, outperforming 54.78% of the companies in the same industry.
  • LHCG has a Quick Ratio of 1.45. This is a normal value and indicates that LHCG is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of LHCG (1.45) is better than 61.74% of its industry peers.
Industry RankSector Rank
Current Ratio 1.45
Quick Ratio 1.45
LHCG Yearly Current Assets VS Current LiabilitesLHCG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. LHCG Growth Analysis

3.1 Past

  • The earnings per share for LHCG have decreased strongly by -25.09% in the last year.
  • Measured over the past years, LHCG shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.42% on average per year.
  • The Revenue has been growing slightly by 6.44% in the past year.
  • The Revenue has been growing by 19.79% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.09%
EPS 3Y18.36%
EPS 5Y22.42%
EPS Q2Q%-26.9%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.04%
Revenue growth 5Y19.79%
Sales Q2Q%2.03%

3.2 Future

  • Based on estimates for the next years, LHCG will show a small growth in Earnings Per Share. The EPS will grow by 3.16% on average per year.
  • The Revenue is expected to grow by 7.06% on average over the next years.
EPS Next Y-22.68%
EPS Next 2Y-7.47%
EPS Next 3Y-2.14%
EPS Next 5Y3.16%
Revenue Next Year4.9%
Revenue Next 2Y5.12%
Revenue Next 3Y5.4%
Revenue Next 5Y7.06%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
LHCG Yearly Revenue VS EstimatesLHCG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
LHCG Yearly EPS VS EstimatesLHCG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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1

4. LHCG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 38.68, which means the current valuation is very expensive for LHCG.
  • LHCG's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.77. LHCG is valued slightly more expensive when compared to this.
  • LHCG is valuated quite expensively with a Price/Forward Earnings ratio of 34.68.
  • 61.74% of the companies in the same industry are more expensive than LHCG, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of LHCG to the average of the S&P500 Index (21.75), we can say LHCG is valued expensively.
Industry RankSector Rank
PE 38.68
Fwd PE 34.68
LHCG Price Earnings VS Forward Price EarningsLHCG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • LHCG's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 36.27
LHCG Per share dataLHCG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • A cheap valuation may be justified as LHCG's earnings are expected to decrease with -2.14% in the coming years.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y-7.47%
EPS Next 3Y-2.14%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LHCG Dividend Analysis

5.1 Amount

  • LHCG does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LHCG Fundamentals: All Metrics, Ratios and Statistics

LHC GROUP INC

NASDAQ:LHCG (2/21/2023, 8:24:00 PM)

After market: 169.81 0 (0%)

169.81

+0.8 (+0.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength45.96
Industry Growth88.2
Earnings (Last)02-21
Earnings (Next)05-02
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners9.38%
Ins Owner Change0%
Market Cap5.27B
Revenue(TTM)2.31B
Net Income(TTM)63.04M
Analysts52.31
Price Target176.8 (4.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.89%
Min EPS beat(2)-28.55%
Max EPS beat(2)-21.23%
EPS beat(4)1
Avg EPS beat(4)-13.67%
Min EPS beat(4)-28.55%
Max EPS beat(4)1.37%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.18%
Min Revenue beat(2)-7.57%
Max Revenue beat(2)-6.79%
Revenue beat(4)0
Avg Revenue beat(4)-4.6%
Min Revenue beat(4)-7.57%
Max Revenue beat(4)-1.81%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.5%
Valuation
Industry RankSector Rank
PE 38.68
Fwd PE 34.68
P/S 2.28
P/FCF N/A
P/OCF N/A
P/B 3.29
P/tB N/A
EV/EBITDA 36.27
EPS(TTM)4.39
EY2.59%
EPS(NY)4.9
Fwd EY2.88%
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)-1.25
OCFYN/A
SpS74.37
BVpS51.57
TBVpS-17.57
PEG (NY)N/A
PEG (5Y)1.72
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 2.16%
ROE 3.94%
ROCE N/A
ROIC 4.2%
ROICexc 4.22%
ROICexgc 24.13%
OM 6.15%
PM (TTM) 2.73%
GM 38.62%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)7.29%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-4.92%
ROICexgc growth 5Y0.12%
ROICexc growth 3Y-3.77%
ROICexc growth 5Y-10.17%
OM growth 3Y2.47%
OM growth 5Y2.07%
PM growth 3Y14.06%
PM growth 5Y5.1%
GM growth 3Y3.28%
GM growth 5Y0.9%
F-Score3
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF N/A
Debt/EBITDA 4.46
Cap/Depr 100.43%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.45
Quick Ratio 1.45
Altman-Z 3.8
F-Score3
WACC8.35%
ROIC/WACC0.5
Cap/Depr(3y)217.37%
Cap/Depr(5y)282.31%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.09%
EPS 3Y18.36%
EPS 5Y22.42%
EPS Q2Q%-26.9%
EPS Next Y-22.68%
EPS Next 2Y-7.47%
EPS Next 3Y-2.14%
EPS Next 5Y3.16%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.04%
Revenue growth 5Y19.79%
Sales Q2Q%2.03%
Revenue Next Year4.9%
Revenue Next 2Y5.12%
Revenue Next 3Y5.4%
Revenue Next 5Y7.06%
EBIT growth 1Y-34.33%
EBIT growth 3Y9.68%
EBIT growth 5Y22.27%
EBIT Next Year-13.1%
EBIT Next 3Y1.4%
EBIT Next 5Y2.66%
FCF growth 1Y-115.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-108.03%
OCF growth 3YN/A
OCF growth 5YN/A

LHC GROUP INC / LHCG Fundamental Analysis FAQ

What is the fundamental rating for LHCG stock?

ChartMill assigns a fundamental rating of 3 / 10 to LHCG.


What is the valuation status for LHCG stock?

ChartMill assigns a valuation rating of 1 / 10 to LHC GROUP INC (LHCG). This can be considered as Overvalued.


Can you provide the profitability details for LHC GROUP INC?

LHC GROUP INC (LHCG) has a profitability rating of 1 / 10.


What is the financial health of LHC GROUP INC (LHCG) stock?

The financial health rating of LHC GROUP INC (LHCG) is 5 / 10.