LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - NYSE:LH - US5049221055 - Common Stock
266.89 USD
-0.98 (-0.37%)
266.89 USD
0 (0%)
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 100 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. 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.
LH had positive earnings in each of the past 5 years.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
LH has a better Return On Assets (4.68%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.83%, LH is in the better half of the industry, outperforming 71.00% 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 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.45%.
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
Looking at the Profit Margin, with a value of 6.21%, LH belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
LH's Profit Margin has declined in the last couple of years.
LH's Operating Margin of 9.92% is fine compared to the rest of the industry. LH outperforms 77.00% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH has a Gross Margin (28.45%) which is in line with its industry peers.
LH's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LH is destroying value.
LH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LH has been reduced compared to 5 years ago.
LH has a worse debt/assets ratio than last year.
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.
LH has a Altman-Z score of 3.16. This is in the better half of the industry: LH outperforms 67.00% 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.
With a decent Debt to FCF ratio value of 4.09, LH is doing good in the industry, outperforming 71.00% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.74
WACC8.53%
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's Current ratio of 1.55 is in line compared to the rest of the industry. LH outperforms 55.00% of its industry peers.
A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.35, LH is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.71% over the past year.
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
LH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.39% yearly.
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 5Y8.39%
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 16.87.
Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 77.00% of the companies listed in the same industry.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 14.79 indicates a correct valuation of LH.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 76.00% of the companies in the same industry.
LH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
72.00% 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 | 16.06 | ||
| EV/EBITDA | 14.32 |
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)1.09
PEG (5Y)3.25
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, LH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, LH pays a better dividend. On top of this LH pays more dividend than 85.00% of the companies listed in the same industry.
With a Dividend Yield of 1.17, LH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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%
266.89
-0.98 (-0.37%)
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-0.21%
Ins Owners0.33%
Ins Owner Change-2.83%
Market Cap22.18B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target307.03 (15.04%)
Short Float %2.95%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)7.68%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 14.79 | ||
| P/S | 1.61 | ||
| P/FCF | 16.06 | ||
| P/OCF | 12.3 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.32 |
EPS(TTM)15.82
EY5.93%
EPS(NY)18.05
Fwd EY6.76%
FCF(TTM)16.62
FCFY6.23%
OCF(TTM)21.7
OCFY8.13%
SpS165.65
BVpS104.66
TBVpS-18.73
PEG (NY)1.09
PEG (5Y)3.25
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 | 250 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 161.46% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.16 |
F-Score9
WACC8.53%
ROIC/WACC0.74
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 Year7.86%
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 Year31.74%
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 16.87 and the Price/Book (PB) ratio is 2.55.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.