169.81 USD
+0.8 (+0.47%)
169.81 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to LHCG. LHCG was compared to 103 industry peers in the Health Care Providers & Services industry. LHCG has an average financial health and profitability rating. LHCG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- LHCG had positive earnings in the past year.
- In the past year LHCG has reported a negative cash flow from operations.
1.2 Ratios
- LHCG's Return On Assets of 2.16% is fine compared to the rest of the industry. LHCG outperforms 66.09% of its industry peers.
- 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.
- Looking at the Operating Margin, with a value of 6.15%, LHCG is in the better half of the industry, outperforming 68.70% of the companies in the same industry.
- In the last couple of years the Operating Margin of LHCG has grown nicely.
- Looking at the Gross Margin, with a value of 38.62%, LHCG is in the better half of the industry, outperforming 68.70% of the companies in the same industry.
- LHCG's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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.
- LHCG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- 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 in line with its industry peers.
- 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 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.
- The Earnings Per Share has been growing by 22.42% on average over the past years. This is a very strong growth
- LHCG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
- 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
- LHCG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.16% yearly.
- Based on estimates for the next years, LHCG will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
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.
- LHCG's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. LHCG is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 34.68 indicates a quite expensive valuation of LHCG.
- 61.74% of the companies in the same industry are more expensive than LHCG, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. LHCG is valued slightly more expensive when compared to this.
| 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
- 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 / LHCG 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.
What is the profitability of LHCG stock?
LHC GROUP INC (LHCG) has a profitability rating of 1 / 10.
Can you provide the expected EPS growth for LHCG stock?
The Earnings per Share (EPS) of LHC GROUP INC (LHCG) is expected to decline by -22.68% in the next year.