LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - NYSE:LH - US5049221055 - Common Stock
259.81 USD
-1.56 (-0.6%)
259.81 USD
0 (0%)
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 100 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.
LH had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.68%, LH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LH has a better Return On Equity (9.83%) than 71.00% of its industry peers.
With a decent Return On Invested Capital value of 6.32%, LH is doing good in the industry, outperforming 64.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LH is below the industry average of 9.40%.
The last Return On Invested Capital (6.32%) for LH is above the 3 year average (6.31%), which is a sign of increasing profitability.
| 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
LH has a Profit Margin of 6.21%. This is amongst the best in the industry. LH outperforms 82.00% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
Looking at the Operating Margin, with a value of 9.92%, LH is in the better half of the industry, outperforming 77.00% of the companies in the same industry.
LH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 28.45%, LH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
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
LH 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 LH has been reduced compared to 1 year ago.
The number of shares outstanding for LH has been reduced compared to 5 years ago.
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
LH has an Altman-Z score of 3.12. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
LH's Altman-Z score of 3.12 is fine compared to the rest of the industry. LH outperforms 66.00% 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's Debt to FCF ratio of 4.09 is fine compared to the rest of the industry. LH outperforms 71.00% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, LH perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.75
WACC8.45%
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 of 1.55. This is comparable to the rest of the industry: LH outperforms 56.00% of its industry peers.
A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio (1.35) which is in line with its industry peers.
| 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.
LH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.28%.
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
The Earnings Per Share is expected to grow by 8.39% on average over the next years. This is quite good.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y8.39%
Revenue Next Year7.77%
Revenue Next 2Y6.11%
Revenue Next 3Y5.73%
Revenue Next 5Y4.05%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.42, the valuation of LH can be described as correct.
77.00% of the companies in the same industry are more expensive than LH, based on the Price/Earnings ratio.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 14.39, which indicates a correct valuation of LH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 76.00% of the companies listed in the same industry.
LH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 73.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.64 | ||
| EV/EBITDA | 13.97 |
4.3 Compensation for Growth
The 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)1.07
PEG (5Y)3.16
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, LH has a reasonable but not impressive dividend return.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.57. LH pays more dividend than 85.00% of the companies in the same industry.
With a Dividend Yield of 1.08, LH pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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%
259.81
-1.56 (-0.6%)
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-1.65%
Ins Owners0.33%
Ins Owner Change-7.51%
Market Cap21.59B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target307.03 (18.17%)
Short Float %3.24%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)2.12%
PT rev (3m)2.98%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 14.39 | ||
| P/S | 1.57 | ||
| P/FCF | 15.64 | ||
| P/OCF | 11.97 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.97 |
EPS(TTM)15.82
EY6.09%
EPS(NY)18.05
Fwd EY6.95%
FCF(TTM)16.62
FCFY6.4%
OCF(TTM)21.7
OCFY8.35%
SpS165.65
BVpS104.66
TBVpS-18.73
PEG (NY)1.07
PEG (5Y)3.16
Graham Number193.01
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 | 3.12 |
F-Score9
WACC8.45%
ROIC/WACC0.75
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 5Y8.39%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.77%
Revenue Next 2Y6.11%
Revenue Next 3Y5.73%
Revenue Next 5Y4.05%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.62%
EBIT Next 3Y14.33%
EBIT Next 5Y11.34%
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 16.42 and the Price/Book (PB) ratio is 2.48.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.