LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
268.78 USD
+0.51 (+0.19%)
268.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 101 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. LH has a correct valuation and a medium 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.
Each year in the past 5 years LH has been profitable.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.68%, LH is doing good in the industry, outperforming 76.24% of the companies in the same industry.
With a decent Return On Equity value of 9.83%, LH is doing good in the industry, outperforming 71.29% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for LH is below the industry average of 9.26%.
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 better Profit Margin (6.21%) than 82.18% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH has a Operating Margin of 9.92%. This is in the better half of the industry: LH outperforms 77.23% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
The Gross Margin of LH (28.45%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LH is destroying value.
The number of shares outstanding for LH has been reduced compared to 1 year ago.
Compared to 5 years ago, LH has less shares outstanding
The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
LH has an Altman-Z score of 3.16. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LH (3.16) is better than 65.35% of its industry peers.
The Debt to FCF ratio of LH is 4.09, which is a neutral value as it means it would take LH, 4.09 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.09, LH is doing good in the industry, outperforming 70.30% of the companies in the same industry.
LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.76
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
LH's Current ratio of 1.55 is in line compared to the rest of the industry. LH outperforms 56.44% of its industry peers.
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.
LH has a Quick ratio of 1.35. This is comparable to the rest of the industry: LH outperforms 53.47% of 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.
Measured over the past 5 years, LH shows a small growth in Earnings Per Share. The EPS has been growing by 5.20% on average per year.
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 7.98% on average over the next years.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
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.
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 correctly with a Price/Earnings ratio of 16.99.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 78.22% of the companies are valued more expensively.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 14.89, the valuation of LH can be described as correct.
78.22% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. LH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
62.38% of the companies in the same industry are more expensive than LH, based on the Enterprise Value to EBITDA ratio.
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 | 16.14 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
LH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LH may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)3.27
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
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.
With a Dividend Yield of 1.10, LH pays less dividend than the S&P500 average, which is at 2.40.
| 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.
The dividend of LH decreased 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%
268.78
+0.51 (+0.19%)
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 Cap22.28B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target305.58 (13.69%)
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 | 16.99 | ||
| Fwd PE | 14.89 | ||
| P/S | 1.62 | ||
| P/FCF | 16.14 | ||
| P/OCF | 12.35 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)15.82
EY5.89%
EPS(NY)18.05
Fwd EY6.72%
FCF(TTM)16.66
FCFY6.2%
OCF(TTM)21.76
OCFY8.09%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.1
PEG (5Y)3.27
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 | 3.16 |
F-Score9
WACC8.26%
ROIC/WACC0.76
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 6 / 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 16.99 and the Price/Book (PB) ratio is 2.56.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.