LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
261.99 USD
+3.93 (+1.52%)
261.99 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 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.
Each year in the past 5 years LH has been profitable.
LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LH has a Return On Assets of 4.68%. This is in the better half of the industry: LH outperforms 75.00% of its industry peers.
LH has a better Return On Equity (9.83%) than 71.00% of its industry peers.
With a decent Return On Invested Capital value of 6.32%, LH is doing good in 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 3 year average ROIC (6.31%) for LH is below the current ROIC(6.32%), indicating increased profibility in the last year.
| 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
The Profit Margin of LH (6.21%) is better than 82.00% of its industry peers.
LH's Profit Margin has declined in the last couple of years.
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 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 | 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.
LH has less shares outstanding than it did 1 year ago.
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 3.12 indicates that LH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.12, LH is doing good in the industry, outperforming 65.00% 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.
LH has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: LH outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.78
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
LH's Current ratio of 1.55 is in line compared to the rest of the industry. LH outperforms 57.00% of its industry peers.
A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.35, LH perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
LH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.71%, which is quite good.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.28%.
LH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
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
Based on estimates for the next years, LH will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
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
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
With a Price/Earnings ratio of 16.56, LH is valued correctly.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, LH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.51, LH is valued correctly.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 75.00% of the companies in the same industry.
LH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
LH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LH is cheaper than 61.00% of the companies in the same industry.
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 | 15.73 | ||
| EV/EBITDA | 14.04 |
4.3 Compensation for Growth
LH's 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)1.07
PEG (5Y)3.19
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 2.55, LH pays a better dividend. On top of this LH pays more dividend than 86.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 28.24% 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.
DP28.24%
EPS Next 2Y11.3%
EPS Next 3Y10.57%
261.99
+3.93 (+1.52%)
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 Cap21.72B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (16.7%)
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 | 16.56 | ||
| Fwd PE | 14.51 | ||
| P/S | 1.58 | ||
| P/FCF | 15.73 | ||
| P/OCF | 12.04 | ||
| P/B | 2.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.04 |
EPS(TTM)15.82
EY6.04%
EPS(NY)18.05
Fwd EY6.89%
FCF(TTM)16.66
FCFY6.36%
OCF(TTM)21.76
OCFY8.3%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.07
PEG (5Y)3.19
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 | 3.12 |
F-Score9
WACC8.13%
ROIC/WACC0.78
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 16.56 and the Price/Book (PB) ratio is 2.5.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.