LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
LH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LH had positive earnings in the past year.
LH had a positive operating cash flow in the past year.
In the past 5 years LH has always been profitable.
Each year in the past 5 years LH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.15%, LH is in the better half of the industry, outperforming 74.76% of the companies in the same industry.
LH's Return On Equity of 8.80% is fine compared to the rest of the industry. LH outperforms 70.87% of its industry peers.
LH has a Return On Invested Capital (5.32%) which is comparable to the rest of the industry.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.8% | ||
| ROIC | 5.32% |
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 5.55%, LH is in the better half of the industry, outperforming 79.61% of the companies in the same industry.
LH's Profit Margin has declined in the last couple of years.
LH's Operating Margin of 8.66% is fine compared to the rest of the industry. LH outperforms 76.70% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.89%, LH perfoms like the industry average, outperforming 53.40% of the companies in the same industry.
LH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.66% | ||
| PM (TTM) | 5.55% | ||
| GM | 27.89% |
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.
LH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
LH has an Altman-Z score of 3.17. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.17, LH is in the better half of the industry, outperforming 66.02% of the companies in the same industry.
LH has a debt to FCF ratio of 4.90. This is a neutral value as LH would need 4.90 years to pay back of all of its debts.
LH has a better Debt to FCF ratio (4.90) than 67.96% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.68
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.84 indicates that LH should not have too much problems paying its short term obligations.
LH has a better Current ratio (1.84) than 66.99% of its industry peers.
LH has a Quick Ratio of 1.60. 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 1.60, LH perfoms like the industry average, outperforming 59.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
LH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.03%.
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.
The Revenue has been growing slightly by 7.13% in the past year.
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)4.03%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.35%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
3.2 Future
The Earnings Per Share is expected to grow by 8.88% on average over the next years. This is quite good.
Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y13.79%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
EPS Next 5Y8.88%
Revenue Next Year7%
Revenue Next 2Y5.9%
Revenue Next 3Y5.54%
Revenue Next 5Y3.92%
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
With a Price/Earnings ratio of 17.78, LH is valued on the expensive side.
LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 72.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (27.45), we can say LH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.41, the valuation of LH can be described as correct.
76.70% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (21.90), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LH.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 65.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.03 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)3.42
EPS Next 2Y11.7%
EPS Next 3Y11.02%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.12%.
Compared to an average industry Dividend Yield of 2.42, LH pays a better dividend. On top of this LH pays more dividend than 84.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
LH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)96.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LH pays out 33.20% of its income as dividend. This is a sustainable payout ratio.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.2%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
261.89
+1.89 (+0.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-10.25%
Ins Owners0.35%
Ins Owner Change4.14%
Market Cap21.92B
Analysts84.14
Price Target281.65 (7.55%)
Short Float %4.13%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP33.2%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.73%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.37%
EPS beat(4)1
Avg EPS beat(4)-0.66%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.29%
EPS beat(8)3
Avg EPS beat(8)0.15%
EPS beat(12)4
Avg EPS beat(12)-0.62%
EPS beat(16)7
Avg EPS beat(16)2.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.83%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)0
Avg Revenue beat(12)-9.72%
Revenue beat(16)2
Avg Revenue beat(16)-12.63%
PT rev (1m)1.34%
PT rev (3m)2.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 14.41 | ||
| P/S | 1.66 | ||
| P/FCF | 19.03 | ||
| P/OCF | 13.41 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)14.73
EY5.62%
EPS(NY)18.18
Fwd EY6.94%
FCF(TTM)13.76
FCFY5.26%
OCF(TTM)19.52
OCFY7.45%
SpS157.44
BVpS99.25
TBVpS-19.13
PEG (NY)1.29
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 8.8% | ||
| ROCE | 7.35% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 15.7% | ||
| OM | 8.66% | ||
| PM (TTM) | 5.55% | ||
| GM | 27.89% | ||
| FCFM | 8.74% |
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-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 73.51% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 90.91% | ||
| Profit Quality | 157.64% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.17 |
F-Score8
WACC7.85%
ROIC/WACC0.68
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)4.03%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%4.35%
EPS Next Y13.79%
EPS Next 2Y11.7%
EPS Next 3Y11.02%
EPS Next 5Y8.88%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%5.3%
Revenue Next Year7%
Revenue Next 2Y5.9%
Revenue Next 3Y5.54%
Revenue Next 5Y3.92%
EBIT growth 1Y2.57%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.23%
EBIT Next 3Y14.57%
EBIT Next 5Y11.34%
FCF growth 1Y-8.75%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y-5.05%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%