LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
269.83 USD
+4.52 (+1.7%)
269.83 USD
0 (0%)
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 101 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years LH has always been profitable.
LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LH has a better Return On Assets (4.68%) than 76.24% of its industry peers.
The Return On Equity of LH (9.83%) is better than 71.29% of its industry peers.
LH has a Return On Invested Capital of 6.32%. This is in the better half of the industry: LH outperforms 64.36% of its industry peers.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.27%.
The 3 year average ROIC (6.31%) for LH is below the current ROIC(6.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROIC | 6.32% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
1.3 Margins
Looking at the Profit Margin, with a value of 6.21%, LH belongs to the top of the industry, outperforming 82.18% 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 (9.92%) is better than 77.23% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
LH has a Gross Margin of 28.45%. This is comparable to the rest of the industry: LH outperforms 55.45% of its industry peers.
In the last couple of years the Gross Margin of LH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% |
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LH is destroying value.
Compared to 1 year ago, LH has less shares outstanding
Compared to 5 years ago, LH has less shares outstanding
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.14 indicates that LH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LH (3.14) is better than 64.36% of its industry peers.
LH has a debt to FCF ratio of 4.09. This is a neutral value as LH would need 4.09 years to pay back of all of its debts.
LH has a Debt to FCF ratio of 4.09. This is in the better half of the industry: LH outperforms 70.30% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, LH is in line with its industry, outperforming 58.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.77
WACC8.24%
2.3 Liquidity
LH has a Current Ratio of 1.55. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
LH has a Current ratio (1.55) which is comparable to the rest of the industry.
LH has a Quick Ratio of 1.35. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.35, LH perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
LH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.71%, which is quite good.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.20% yearly.
The Revenue has grown by 8.28% in the past year. This is quite good.
Measured over the past years, LH shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
EPS 1Y (TTM)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
3.2 Future
Based on estimates for the next years, LH will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LH is valuated rather expensively with a Price/Earnings ratio of 17.06.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than 77.23% of the companies in the same industry.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
LH is valuated correctly with a Price/Forward Earnings ratio of 14.95.
LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 78.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. LH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 62.38% of the companies in the same industry.
72.28% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
LH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.11
PEG (5Y)3.28
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, LH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.60, LH pays a better dividend. On top of this LH pays more dividend than 85.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of LH grows each year by 96.38%, which is quite nice.
LH has been paying a dividend for over 5 years, so it has already some track record.
LH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)96.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
28.24% of the earnings are spent on dividend by LH. This is a low number and sustainable payout ratio.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.24%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
269.83
+4.52 (+1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.29%
Inst Owner Change-2.19%
Ins Owners0.33%
Ins Owner Change-2.8%
Market Cap22.37B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target305.58 (13.25%)
Short Float %3.24%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP28.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.84%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.49%
Min EPS beat(4)-1.84%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.27%
EPS beat(12)4
Avg EPS beat(12)-0.63%
EPS beat(16)6
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.35%
Revenue beat(12)0
Avg Revenue beat(12)-5.86%
Revenue beat(16)0
Avg Revenue beat(16)-13.64%
PT rev (1m)1.63%
PT rev (3m)2.49%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 14.95 | ||
| P/S | 1.63 | ||
| P/FCF | 16.2 | ||
| P/OCF | 12.4 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.18 |
EPS(TTM)15.82
EY5.86%
EPS(NY)18.05
Fwd EY6.69%
FCF(TTM)16.66
FCFY6.17%
OCF(TTM)21.76
OCFY8.06%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.11
PEG (5Y)3.28
Graham Number193.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROCE | 8.73% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 20.66% | ||
| OM | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% | ||
| FCFM | 10.03% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
ROICexc(3y)6.66%
ROICexc(5y)9.53%
ROICexgc(3y)24.5%
ROICexgc(5y)35.7%
ROCE(3y)8.72%
ROCE(5y)12.25%
ROICexgc growth 3Y-23.52%
ROICexgc growth 5Y-8.03%
ROICexc growth 3Y-23.85%
ROICexc growth 5Y-3.15%
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
F-Score9
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 77.99% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 5.52 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 161.46% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.14 |
F-Score9
WACC8.24%
ROIC/WACC0.77
Cap/Depr(3y)76.91%
Cap/Depr(5y)70.72%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.56%
Profit Quality(3y)157.09%
Profit Quality(5y)139.08%
High Growth Momentum
Growth
EPS 1Y (TTM)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.28%
EBIT Next 3Y14.33%
EBIT Next 5Y12.85%
FCF growth 1Y38.44%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y28.67%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%
LABCORP HOLDINGS INC / LH FAQ
Can you provide the ChartMill fundamental rating for LABCORP HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to LH.
What is the valuation status of LABCORP HOLDINGS INC (LH) stock?
ChartMill assigns a valuation rating of 5 / 10 to LABCORP HOLDINGS INC (LH). This can be considered as Fairly Valued.
What is the profitability of LH stock?
LABCORP HOLDINGS INC (LH) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for LH stock?
The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 17.06 and the Price/Book (PB) ratio is 2.57.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.