LHC GROUP INC (LHCG) Stock Fundamental Analysis
NASDAQ:LHCG - Nasdaq - US50187A1079 - Common Stock - Currency: USD
LHCG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of LHCG get a neutral evaluation. Nothing too spectacular is happening here. LHCG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LHCG was profitable.
LHCG had a negative operating cash flow in the past year.
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.
The Return On Invested Capital of LHCG (4.20%) is better than 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.
The Operating Margin of LHCG (6.15%) is better 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
LHCG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LHCG has been reduced compared to 1 year ago.
LHCG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.80 indicates that LHCG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.80, LHCG belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that LHCG is not too dependend on debt financing.
LHCG's Debt to Equity ratio of 0.46 is fine compared to the rest of the industry. LHCG outperforms 64.35% of its industry peers.
| 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.
LHCG has a Current ratio (1.45) which is comparable to the rest of the 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.
Looking at the last year, LHCG shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
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 Q2Q%-26.9%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y7.04%
Revenue growth 5Y19.79%
Sales Q2Q%2.03%
3.2 Future
LHCG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.16% yearly.
LHCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.68, the valuation of LHCG can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LHCG.
Compared to an average S&P500 Price/Earnings ratio of 26.82, LHCG is valued a bit more expensive.
With a Price/Forward Earnings ratio of 34.68, LHCG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, LHCG is valued a bit cheaper than 61.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. LHCG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 34.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LHCG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.27 |
4.3 Compensation for Growth
LHCG's earnings are expected to decrease with -2.14% in the coming years. This may justify a cheaper valuation.
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 |
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 OwnersN/A
Inst Owner ChangeN/A
Ins Owners9.38%
Ins Owner Change0%
Market Cap5.27B
Analysts52.31
Price Target176.8 (4.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y-4.92%
ROICexcg 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 Rank | Sector 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