LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
268.78 USD
+0.51 (+0.19%)
268.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 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 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.
LH had positive earnings in each of the past 5 years.
In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.68%, LH is doing good in the industry, outperforming 76.24% of the companies in the same industry.
LH has a Return On Equity of 9.83%. This is in the better half of the industry: LH outperforms 72.28% of its industry peers.
The Return On Invested Capital of LH (6.32%) is better than 64.36% 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 9.26%.
The last Return On Invested Capital (6.32%) for LH is above the 3 year average (6.31%), which is a sign of increasing profitability.
| 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
LH has a better Profit Margin (6.21%) than 82.18% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH has a better Operating Margin (9.92%) than 77.23% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
The Gross Margin of LH (28.45%) 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.
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.
LH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.16 indicates that LH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, LH is in the better half of the industry, outperforming 65.35% 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 70.30% of the companies in the same industry.
LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
LH has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.76
WACC8.26%
2.3 Liquidity
LH has a Current Ratio of 1.55. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
LH has a Current ratio (1.55) which is in line with its industry peers.
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 in line with its industry peers.
| 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
LH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y15.41%
EPS Next 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
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
Based on the Price/Earnings ratio of 16.99, the valuation of LH can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 79.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (26.31), we can say LH is valued slightly cheaper.
LH is valuated correctly with a Price/Forward Earnings ratio of 14.89.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than the industry average as 78.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, LH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 61.39% of the companies listed 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 73.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.14 | ||
| EV/EBITDA | 14.33 |
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)1.1
PEG (5Y)3.27
EPS Next 2Y11.3%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.48, LH pays a better dividend. On top of this LH pays more dividend than 85.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
On average, the dividend of LH grows each year by 96.38%, which is quite nice.
LH has been paying a dividend for over 5 years, so it has already some track record.
The dividend of LH decreased 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 2Y11.3%
EPS Next 3Y10.56%
268.78
+0.51 (+0.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.29%
Inst Owner Change-2.19%
Ins Owners0.33%
Ins Owner Change-2.8%
Market Cap22.28B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts83.45
Price Target305.58 (13.69%)
Short Float %3.24%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)-0.47%
PT rev (3m)1.82%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 14.89 | ||
| P/S | 1.62 | ||
| P/FCF | 16.14 | ||
| P/OCF | 12.35 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.33 |
EPS(TTM)15.82
EY5.89%
EPS(NY)18.05
Fwd EY6.72%
FCF(TTM)16.66
FCFY6.2%
OCF(TTM)21.76
OCFY8.09%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.1
PEG (5Y)3.27
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 | 3.16 |
F-Score9
WACC8.26%
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 2Y11.3%
EPS Next 3Y10.56%
EPS Next 5Y7.98%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.86%
Revenue Next 2Y6.15%
Revenue Next 3Y5.76%
Revenue Next 5Y4.07%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.28%
EBIT Next 3Y14.33%
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 6 / 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 16.99 and the Price/Book (PB) ratio is 2.56.
What is the financial health of LABCORP HOLDINGS INC (LH) stock?
The financial health rating of LABCORP HOLDINGS INC (LH) is 5 / 10.