LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - NYSE:LH - US5049221055 - Common Stock
275.4 USD
-2.55 (-0.92%)
275.4 USD
0 (0%)
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 101 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.
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
LH has a Return On Assets of 4.23%. This is in the better half of the industry: LH outperforms 73.27% of its industry peers.
LH has a Return On Equity of 9.01%. This is in the better half of the industry: LH outperforms 71.29% of its industry peers.
The Return On Invested Capital of LH (5.82%) is better than 61.39% of its industry peers.
LH had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROIC | 5.82% |
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
With an excellent Profit Margin value of 5.66%, LH belongs to the best of the industry, outperforming 80.20% of the companies in the same industry.
LH's Profit Margin has declined in the last couple of years.
LH has a Operating Margin of 9.15%. This is in the better half of the industry: LH outperforms 78.22% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
The Gross Margin of LH (28.14%) is comparable to the rest of the 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 | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% |
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.
Compared to 1 year ago, LH has less shares outstanding
The number of shares outstanding for LH has been reduced compared to 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 3.15. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LH (3.15) is better than 64.36% of its industry peers.
The Debt to FCF ratio of LH is 4.48, which is a neutral value as it means it would take LH, 4.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.48, LH is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that LH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, LH perfoms like the industry average, outperforming 57.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.72
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.50 indicates that LH should not have too much problems paying its short term obligations.
LH has a Current ratio (1.50) which is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio of 1.32. This is comparable to the rest of the industry: LH outperforms 46.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.87% over the past year.
The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
Looking at the last year, LH shows a small growth in Revenue. The Revenue has grown by 7.98% in the last 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)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
3.2 Future
Based on estimates for the next years, LH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.10% on average per year.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y15.26%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
EPS Next 5Y9.1%
Revenue Next Year7.83%
Revenue Next 2Y6.29%
Revenue Next 3Y5.75%
Revenue Next 5Y4.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 rather expensively with a Price/Earnings ratio of 18.19.
LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 75.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, LH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.18, LH is valued correctly.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 74.26% of the companies in the same industry.
LH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LH is cheaper than 61.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 68.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.14 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
LH's 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)1.19
PEG (5Y)3.5
EPS Next 2Y11.6%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, LH pays a better dividend. On top of this LH pays more dividend than 84.16% 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 | 1.03% |
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
31.71% 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.
DP31.71%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
275.4
-2.55 (-0.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change1.7%
Ins Owners0.34%
Ins Owner Change0.77%
Market Cap22.89B
Analysts83.45
Price Target300.67 (9.18%)
Short Float %3.33%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP31.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-0.37%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.23%
EPS beat(12)4
Avg EPS beat(12)-0.7%
EPS beat(16)7
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)0
Avg Revenue beat(12)-7.84%
Revenue beat(16)1
Avg Revenue beat(16)-12.95%
PT rev (1m)0.85%
PT rev (3m)7.56%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 15.18 | ||
| P/S | 1.7 | ||
| P/FCF | 18.14 | ||
| P/OCF | 13.51 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.75 |
EPS(TTM)15.14
EY5.5%
EPS(NY)18.15
Fwd EY6.59%
FCF(TTM)15.18
FCFY5.51%
OCF(TTM)20.38
OCFY7.4%
SpS162.26
BVpS101.96
TBVpS-18.93
PEG (NY)1.19
PEG (5Y)3.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROCE | 8.04% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.08% | ||
| ROICexgc | 19.2% | ||
| OM | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% | ||
| FCFM | 9.36% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 45.27% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 77.41% | ||
| Profit Quality | 165.29% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.15 |
F-Score7
WACC8.07%
ROIC/WACC0.72
Cap/Depr(3y)71.23%
Cap/Depr(5y)67.32%
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)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
EPS Next Y15.26%
EPS Next 2Y11.6%
EPS Next 3Y10.83%
EPS Next 5Y9.1%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
Revenue Next Year7.83%
Revenue Next 2Y6.29%
Revenue Next 3Y5.75%
Revenue Next 5Y4.12%
EBIT growth 1Y8.75%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.12%
EBIT Next 3Y14.31%
EBIT Next 5Y11.34%
FCF growth 1Y15.01%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y12.91%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%