LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 108 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of LH get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years LH has been profitable.
In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LH (4.06%) is better than 74.77% of its industry peers.
With a decent Return On Equity value of 9.26%, LH is doing good in the industry, outperforming 75.70% of the companies in the same industry.
LH has a better Return On Invested Capital (5.47%) than 64.49% of its industry peers.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is in line with the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 9.26% | ||
| ROIC | 5.47% |
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 (5.73%) than 83.18% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH has a Operating Margin of 8.75%. This is in the better half of the industry: LH outperforms 79.44% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
Looking at the Gross Margin, with a value of 27.86%, LH is in line with its industry, outperforming 53.27% 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 | 8.75% | ||
| PM (TTM) | 5.73% | ||
| GM | 27.86% |
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.
LH has less shares outstanding than it did 1 year ago.
LH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that LH is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.85, LH is doing good in the industry, outperforming 63.55% of the companies in the same industry.
LH has a debt to FCF ratio of 5.85. This is a neutral value as LH would need 5.85 years to pay back of all of its debts.
The Debt to FCF ratio of LH (5.85) is better than 73.83% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that LH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, LH is in line with its industry, outperforming 52.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.67
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.44 indicates that LH should not have too much problems paying its short term obligations.
The Current ratio of LH (1.44) is comparable to the rest of the industry.
A Quick Ratio of 1.30 indicates that LH should not have too much problems paying its short term obligations.
The Quick ratio of LH (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
LH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.89%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 6.97%.
LH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
EPS 1Y (TTM)1.89%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.55%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.76%
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 8.90% yearly.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y13.36%
EPS Next 2Y11.47%
EPS Next 3Y11.23%
EPS Next 5Y8.9%
Revenue Next Year6.23%
Revenue Next 2Y5.58%
Revenue Next 3Y4.2%
Revenue Next 5Y4.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 17.15 indicates a rather expensive valuation of LH.
Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 76.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (29.63), we can say LH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.13, LH is valued correctly.
LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 75.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than 76.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 14.41 |
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)1.28
PEG (5Y)3.3
EPS Next 2Y11.47%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, 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 2.95. LH pays more dividend than 83.18% of the companies in the same industry.
With a Dividend Yield of 1.18, LH pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of LH is nicely growing with an annual growth rate of 96.38%!
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
32.59% of the earnings are spent on dividend by LH. This is a low number and sustainable payout ratio.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.59%
EPS Next 2Y11.47%
EPS Next 3Y11.23%
249.85
+0.68 (+0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.77%
Inst Owner Change0.66%
Ins Owners0.33%
Ins Owner Change0.71%
Market Cap20.84B
Analysts82.14
Price Target269.29 (7.78%)
Short Float %2.29%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP32.59%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.77%
Min EPS beat(2)-2.46%
Max EPS beat(2)-1.09%
EPS beat(4)2
Avg EPS beat(4)0.09%
Min EPS beat(4)-2.46%
Max EPS beat(4)2.61%
EPS beat(8)3
Avg EPS beat(8)-0.58%
EPS beat(12)4
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)3.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-2.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.68%
Revenue beat(12)0
Avg Revenue beat(12)-11.33%
Revenue beat(16)3
Avg Revenue beat(16)-12.15%
PT rev (1m)-0.55%
PT rev (3m)3.94%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-2.21%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.6 | ||
| P/FCF | 19.01 | ||
| P/OCF | 13.14 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.41 |
EPS(TTM)14.57
EY5.83%
EPS(NY)16.52
Fwd EY6.61%
FCF(TTM)13.14
FCFY5.26%
OCF(TTM)19.01
OCFY7.61%
SpS155.98
BVpS96.55
TBVpS-21.66
PEG (NY)1.28
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 9.26% | ||
| ROCE | 7.56% | ||
| ROIC | 5.47% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 22.43% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.73% | ||
| GM | 27.86% | ||
| FCFM | 8.42% |
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%
ROICexcg growth 3Y-23.52%
ROICexcg 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-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.85 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 76.13% | ||
| Cap/Sales | 3.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.01% | ||
| Profit Quality | 146.9% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.85 |
F-Score7
WACC8.14%
ROIC/WACC0.67
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)1.89%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.55%
EPS Next Y13.36%
EPS Next 2Y11.47%
EPS Next 3Y11.23%
EPS Next 5Y8.9%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.76%
Revenue Next Year6.23%
Revenue Next 2Y5.58%
Revenue Next 3Y4.2%
Revenue Next 5Y4.1%
EBIT growth 1Y1.27%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.37%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y19.44%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%