LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
264.18 USD
-0.55 (-0.21%)
264.18 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 an average financial health and profitability rating. LH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LH had positive earnings in the past year.
In the past year LH had a positive cash flow from operations.
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's Return On Assets of 4.68% is fine compared to the rest of the industry. LH outperforms 75.00% of its industry peers.
The Return On Equity of LH (9.83%) is better than 71.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.32%, LH is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.44%.
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.
In the last couple of years the Profit Margin of LH has declined.
LH's Operating Margin of 9.92% is fine compared to the rest of the industry. LH outperforms 78.00% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
LH has a Gross Margin (28.45%) which is in line with 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 | 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.
Compared to 1 year ago, LH has less shares outstanding
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
An Altman-Z score of 3.14 indicates that LH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, LH is doing good in the industry, outperforming 64.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.09, LH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
The Debt to Equity ratio of LH (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.77
WACC8.18%
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 (1.55) which is comparable to the rest of the industry.
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 comparable to the rest of the 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.
The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
The Revenue has grown by 8.28% in the past year. This is quite good.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.57%
EPS Next 5Y7.98%
Revenue Next Year7.76%
Revenue Next 2Y6.09%
Revenue Next 3Y5.69%
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
A Price/Earnings ratio of 16.70 indicates a correct 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 78.00% of the companies listed in the same industry.
LH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.64, 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 77.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. LH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
61.00% of the companies in the same industry are more expensive than LH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.86 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The 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)1.08
PEG (5Y)3.21
EPS Next 2Y11.3%
EPS Next 3Y10.57%
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 2.44, LH pays a better dividend. On top of this LH pays more dividend than 86.00% 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 2.27.
| 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.
The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.24%
EPS Next 2Y11.3%
EPS Next 3Y10.57%
264.18
-0.55 (-0.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.83%
Inst Owner Change-2.14%
Ins Owners0.32%
Ins Owner Change-2.56%
Market Cap21.90B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (15.74%)
Short Float %3.89%
Short Ratio3.88
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)-0.42%
PT rev (3m)1.69%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.64 | ||
| P/S | 1.59 | ||
| P/FCF | 15.86 | ||
| P/OCF | 12.14 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)15.82
EY5.99%
EPS(NY)18.05
Fwd EY6.83%
FCF(TTM)16.66
FCFY6.3%
OCF(TTM)21.76
OCFY8.23%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.08
PEG (5Y)3.21
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 | 3.14 |
F-Score9
WACC8.18%
ROIC/WACC0.77
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 3Y10.57%
EPS Next 5Y7.98%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.76%
Revenue Next 2Y6.09%
Revenue Next 3Y5.69%
Revenue Next 5Y4.05%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.67%
EBIT Next 3Y14.31%
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 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 16.7 and the Price/Book (PB) ratio is 2.52.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.