LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
253.89 USD
-0.57 (-0.22%)
253.89 USD
0 (0%)
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 102 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. LH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LH was profitable.
LH had a positive operating cash flow in the past year.
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 74.51% of its industry peers.
LH has a better Return On Equity (9.83%) than 70.59% of its industry peers.
LH's Return On Invested Capital of 6.32% is fine compared to the rest of the industry. LH outperforms 63.73% 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 9.61%.
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
Looking at the Profit Margin, with a value of 6.21%, LH belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
LH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.92%, LH is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
LH's Operating Margin has declined in the last couple of years.
LH's Gross Margin of 28.45% is in line compared to the rest of the industry. LH outperforms 56.86% of its industry peers.
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
LH has an Altman-Z score of 3.09. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LH (3.09) is better than 64.71% of its industry peers.
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.
LH has a Debt to FCF ratio of 4.09. This is in the better half of the industry: LH outperforms 69.61% of its industry peers.
LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, LH perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.76
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
The Current ratio of LH (1.55) 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
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.
LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.20% yearly.
Looking at the last year, LH shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
The Revenue has been growing slightly by 2.40% on average over the past years.
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 2Y11.22%
EPS Next 3Y10.52%
EPS Next 5Y7.98%
Revenue Next Year7.76%
Revenue Next 2Y6.07%
Revenue Next 3Y5.68%
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.
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 correctly with a Price/Earnings ratio of 16.05.
Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
LH is valuated correctly with a Price/Forward Earnings ratio of 14.09.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (24.04), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
63.73% 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 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 13.71 |
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)1.04
PEG (5Y)3.09
EPS Next 2Y11.22%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.14%. 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 0.58. LH pays more dividend than 86.27% of the companies in the same industry.
LH's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
28.24% 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.
DP28.24%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
253.89
-0.57 (-0.22%)
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-2.5%
Market Cap21.05B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (20.43%)
Short Float %3.77%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)0.02%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
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 | 16.05 | ||
| Fwd PE | 14.09 | ||
| P/S | 1.53 | ||
| P/FCF | 15.24 | ||
| P/OCF | 11.67 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.71 |
EPS(TTM)15.82
EY6.23%
EPS(NY)18.02
Fwd EY7.1%
FCF(TTM)16.66
FCFY6.56%
OCF(TTM)21.76
OCFY8.57%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.04
PEG (5Y)3.09
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 | 3.09 |
F-Score9
WACC8.27%
ROIC/WACC0.76
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 2Y11.22%
EPS Next 3Y10.52%
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 2Y6.07%
Revenue Next 3Y5.68%
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 16.05 and the Price/Book (PB) ratio is 2.42.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.