LABCORP HOLDINGS INC (LH)
US5049221055 - Common Stock
Taking everything into account, LH scores 4 out of 10 in our fundamental rating. LH was compared to 113 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.
LH had a positive operating cash flow in the past year.
Of the past 5 years LH 4 years were profitable.
LH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of LH (2.34%) is better than 68.14% of its industry peers.
LH has a Return On Equity of 5.33%. This is in the better half of the industry: LH outperforms 67.26% of its industry peers.
LH has a Return On Invested Capital of 5.53%. This is in the better half of the industry: LH outperforms 65.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LH is in line with the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.33% | ||
| ROIC | 5.53% |
ROA(3y)6.84%
ROA(5y)6.56%
ROE(3y)13.71%
ROE(5y)13.73%
ROIC(3y)8.89%
ROIC(5y)9.38%
1.3 Margins
With a decent Profit Margin value of 3.43%, LH is doing good in the industry, outperforming 75.22% of the companies in the same industry.
In the last couple of years the Profit Margin of LH has declined.
LH has a Operating Margin of 8.94%. This is amongst the best in the industry. LH outperforms 81.42% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH's Gross Margin of 27.92% is in line compared to the rest of the industry. LH outperforms 55.75% 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 | 8.94% | ||
| PM (TTM) | 3.43% | ||
| GM | 27.92% |
OM growth 3Y-24.51%
OM growth 5Y-5.28%
PM growth 3Y-32.41%
PM growth 5Y-15.11%
GM growth 3Y-7.91%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LH is creating some value.
LH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.76 indicates that LH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.76, LH is in the better half of the industry, outperforming 69.03% of the companies in the same industry.
The Debt to FCF ratio of LH is 8.10, which is on the high side as it means it would take LH, 8.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LH (8.10) is better than 70.80% of its industry peers.
LH has a Debt/Equity ratio of 0.66. This is a neutral value indicating LH is somewhat dependend on debt financing.
The Debt to Equity ratio of LH (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.1 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.71
WACC7.82%
2.3 Liquidity
LH has a Current Ratio of 1.44. 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 Current ratio value of 1.44, LH perfoms like the industry average, outperforming 48.67% of the companies in the same industry.
LH has a Quick Ratio of 1.30. 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 1.30, LH perfoms like the industry average, outperforming 46.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.76%.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
Looking at the last year, LH shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
Measured over the past years, LH shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)-4.76%
EPS 3Y-15.75%
EPS 5Y5.16%
EPS Q2Q%3.55%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y-4.54%
Revenue growth 5Y1.42%
Sales Q2Q%7.37%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 2.57% on average per year.
EPS Next Y4.62%
EPS Next 2Y7.4%
EPS Next 3Y8.37%
EPS Next 5Y6.49%
Revenue Next Year6.96%
Revenue Next 2Y6.61%
Revenue Next 3Y6.14%
Revenue Next 5Y2.57%
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 16.62.
Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 79.65% of the companies listed in the same industry.
LH is valuated rather cheaply when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.53 indicates a correct valuation of LH.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than the industry average as 79.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
61.06% of the companies in the same industry are more expensive than LH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 73.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.6
PEG (5Y)3.22
EPS Next 2Y7.4%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.21%.
LH's Dividend Yield is rather good when compared to the industry average which is at 3.16. LH pays more dividend than 81.42% of the companies in the same industry.
With a Dividend Yield of 1.21, LH pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of LH is nicely growing with an annual growth rate of 51.98%!
LH has been paying a dividend for over 5 years, so it has already some track record.
The dividend of LH decreased recently.
Dividend Growth(5Y)51.98%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LH pays out 56.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.05%
EPS Next 2Y7.4%
EPS Next 3Y8.37%
LABCORP HOLDINGS INC
NYSE:LH (11/22/2024, 8:04:00 PM)
After market: 239.67 0 (0%)239.67
-0.5 (-0.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 14.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.6
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.94% | ||
| PM (TTM) | 3.43% | ||
| GM | 27.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.76%
EPS 3Y-15.75%
EPS 5Y
EPS Q2Q%
EPS Next Y4.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.43%
Revenue growth 3Y-4.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y