LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock
Overall LH gets a fundamental rating of 4 out of 10. We evaluated LH against 108 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 decent growth rate and is not valued too expensively.
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.
Of the past 5 years LH 4 years were profitable.
Of the past 5 years LH 4 years had a positive operating cash flow.
1.2 Ratios
LH's Return On Assets of 2.34% is fine compared to the rest of the industry. LH outperforms 66.36% of its industry peers.
LH has a better Return On Equity (5.33%) than 64.49% of its industry peers.
LH's Return On Invested Capital of 5.53% is fine compared to the rest of the industry. LH outperforms 63.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is in line with the industry average of 8.27%.
| 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 73.83% of the companies in the same industry.
In the last couple of years the Profit Margin of LH has declined.
LH has a better Operating Margin (8.94%) than 80.37% of its industry peers.
LH's Operating Margin has declined in the last couple of years.
LH has a Gross Margin (27.92%) which is comparable to the rest of the industry.
LH's Gross Margin has been stable in the last couple of years.
| 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
LH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for LH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.75 indicates that LH is not a great score, but indicates only limited risk for bankruptcy at the moment.
LH's Altman-Z score of 2.75 is fine compared to the rest of the industry. LH outperforms 64.49% of its industry peers.
LH has a debt to FCF ratio of 8.10. This is a slightly negative value and a sign of low solvency as LH would need 8.10 years to pay back of all of its debts.
LH has a Debt to FCF ratio of 8.10. This is in the better half of the industry: LH outperforms 64.49% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.1 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.69
WACC7.96%
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.
Looking at the Current ratio, with a value of 1.44, LH is in line with its industry, outperforming 49.53% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that LH should not have too much problems paying its short term obligations.
LH has a Quick ratio of 1.30. This is comparable to the rest of the industry: LH outperforms 46.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for LH have decreased by -4.76% in the last year.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
LH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.43%.
The Revenue has been growing slightly by 1.42% on average over the past years.
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
LH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.46% yearly.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y4.58%
EPS Next 2Y7.42%
EPS Next 3Y8.23%
EPS Next 5Y8.46%
Revenue Next Year6.92%
Revenue Next 2Y6.57%
Revenue Next 3Y6.03%
Revenue Next 5Y4.66%
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
With a Price/Earnings ratio of 16.54, LH is valued correctly.
LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 78.50% of the companies in the same industry.
LH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.94, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.46, the valuation of LH can be described as correct.
LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 77.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (24.11), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
60.75% 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 71.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.61
PEG (5Y)3.21
EPS Next 2Y7.42%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.87. LH pays more dividend than 84.11% 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 2.28.
| 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.
LH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)51.98%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
56.05% of the earnings are spent on dividend by LH. This is a bit on the high side, but may be sustainable.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.05%
EPS Next 2Y7.42%
EPS Next 3Y8.23%
LABCORP HOLDINGS INC
NYSE:LH (1/17/2025, 8:12:23 PM)
Premarket: 240.2 +1.64 (+0.69%)238.56
-0.21 (-0.09%)
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 Change-0.14%
Ins Owners0.33%
Ins Owner Change-4.95%
Market Cap19.95B
Analysts82.22
Price Target270.78 (13.51%)
Short Float %2.31%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend2.95
Dividend Growth(5Y)51.98%
DP56.05%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.58%
Min EPS beat(2)-2.46%
Max EPS beat(2)1.29%
EPS beat(4)2
Avg EPS beat(4)-0.05%
Min EPS beat(4)-2.46%
Max EPS beat(4)2.61%
EPS beat(8)3
Avg EPS beat(8)-0.7%
EPS beat(12)5
Avg EPS beat(12)0.56%
EPS beat(16)9
Avg EPS beat(16)5.64%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-7.39%
Revenue beat(12)0
Avg Revenue beat(12)-17.25%
Revenue beat(16)4
Avg Revenue beat(16)-11.39%
PT rev (1m)0.73%
PT rev (3m)3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 14.46 | ||
| P/S | 1.57 | ||
| P/FCF | 23.66 | ||
| P/OCF | 14.37 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.39 |
EPS(TTM)14.42
EY6.04%
EPS(NY)16.5
Fwd EY6.92%
FCF(TTM)10.08
FCFY4.23%
OCF(TTM)16.6
OCFY6.96%
SpS151.99
BVpS97.68
TBVpS-22.15
PEG (NY)3.61
PEG (5Y)3.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.33% | ||
| ROCE | 7.48% | ||
| ROIC | 5.53% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 22.97% | ||
| OM | 8.94% | ||
| PM (TTM) | 3.43% | ||
| GM | 27.92% | ||
| FCFM | 6.63% |
ROA(3y)6.84%
ROA(5y)6.56%
ROE(3y)13.71%
ROE(5y)13.73%
ROIC(3y)8.89%
ROIC(5y)9.38%
ROICexc(3y)9.43%
ROICexc(5y)9.95%
ROICexgc(3y)34.49%
ROICexgc(5y)38.88%
ROCE(3y)12.01%
ROCE(5y)12.67%
ROICexcg growth 3Y-24.76%
ROICexcg growth 5Y-9.26%
ROICexc growth 3Y-23.23%
ROICexc growth 5Y-2.61%
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%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.1 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 88% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 5.16 | ||
| Cash Conversion | 79.06% | ||
| Profit Quality | 193.62% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.75 |
F-Score6
WACC7.96%
ROIC/WACC0.69
Cap/Depr(3y)72.13%
Cap/Depr(5y)69.36%
Cap/Sales(3y)3.77%
Cap/Sales(5y)3.5%
Profit Quality(3y)145.26%
Profit Quality(5y)135.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.76%
EPS 3Y-15.75%
EPS 5Y5.16%
EPS Q2Q%3.55%
EPS Next Y4.58%
EPS Next 2Y7.42%
EPS Next 3Y8.23%
EPS Next 5Y8.46%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y-4.54%
Revenue growth 5Y1.42%
Sales Q2Q%7.37%
Revenue Next Year6.92%
Revenue Next 2Y6.57%
Revenue Next 3Y6.03%
Revenue Next 5Y4.66%
EBIT growth 1Y-4.68%
EBIT growth 3Y-27.94%
EBIT growth 5Y-3.94%
EBIT Next Year30.69%
EBIT Next 3Y14.85%
EBIT Next 5YN/A
FCF growth 1Y-43.25%
FCF growth 3Y-20.71%
FCF growth 5Y-1.14%
OCF growth 1Y-30.58%
OCF growth 3Y-14.65%
OCF growth 5Y0.34%