LHC GROUP INC (LHCG)
US50187A1079 - Common Stock
LHCG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 117 industry peers in the Health Care Providers & Services industry. LHCG has an average financial health and profitability rating. While showing a medium growth rate, LHCG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LHCG was profitable.
LHCG had a negative operating cash flow in the past year.
LHCG had positive earnings in each of the past 5 years.
Of the past 5 years LHCG 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.16%, LHCG is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
With a decent Return On Equity value of 3.94%, LHCG is doing good in the industry, outperforming 66.09% of the companies in the same industry.
LHCG's Return On Invested Capital of 4.20% is fine compared to the rest of the industry. LHCG outperforms 62.61% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
LHCG has a better Profit Margin (2.73%) than 65.22% of its industry peers.
In the last couple of years the Profit Margin of LHCG has grown nicely.
LHCG has a better Operating Margin (6.15%) than 68.70% of its industry peers.
In the last couple of years the Operating Margin of LHCG has grown nicely.
LHCG's Gross Margin of 38.62% is fine compared to the rest of the industry. LHCG outperforms 68.70% of its industry peers.
In the last couple of years the Gross Margin of LHCG has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LHCG is destroying value.
LHCG has less shares outstanding than it did 1 year ago.
LHCG has a worse debt/assets ratio than last year.
2.2 Solvency
LHCG has an Altman-Z score of 3.80. This indicates that LHCG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.80, LHCG belongs to the best of the industry, outperforming 80.87% of the companies in the same industry.
LHCG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, LHCG is in the better half of the industry, outperforming 64.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.8 |
ROIC/WACC0.5
WACC8.35%
2.3 Liquidity
LHCG has a Current 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.
With a Current ratio value of 1.45, LHCG perfoms like the industry average, outperforming 54.78% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that LHCG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, LHCG is in the better half of the industry, outperforming 61.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
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.
LHCG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
Measured over the past years, LHCG shows a quite strong growth in Revenue. The Revenue has been growing by 19.79% on average per year.
EPS 1Y (TTM)-25.09%
EPS 3Y18.36%
EPS 5Y22.42%
EPS growth Q2Q-26.9%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.04%
Revenue growth 5Y19.79%
Revenue growth Q2Q2.03%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.68 indicates a quite expensive valuation of LHCG.
The rest of the industry has a similar Price/Earnings ratio as LHCG.
When comparing the Price/Earnings ratio of LHCG to the average of the S&P500 Index (28.06), we can say LHCG is valued slightly more expensively.
The Price/Forward Earnings ratio is 34.68, which means the current valuation is very expensive for LHCG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LHCG indicates a somewhat cheap valuation: LHCG is cheaper than 61.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, LHCG is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 34.68 |
4.2 Price Multiples
LHCG's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.27 |
4.3 Compensation for Growth
The decent profitability rating of LHCG may justify a higher PE ratio.
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%
5. Dividend
5.1 Amount
No dividends for LHCG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LHC GROUP INC
NASDAQ:LHCG (2/21/2023, 7:24:00 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
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 38.68 | ||
| Fwd PE | 34.68 | ||
| 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)N/A
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 3.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.15% | ||
| PM (TTM) | 2.73% | ||
| GM | 38.62% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| 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)-25.09%
EPS 3Y18.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.04%
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