Laboratory Corp of America Holdings

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LH : NYSE : Health Care
$161.75 up 3.9 | 2.4%
Today's Range: 154.47 - 157.79
Avg. Daily Volume: 661100.0
07/26/17 - 9:40 AM ET

Financial Analysis

LABORATORY CP OF AMER HLDGS's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. LABORATORY CP OF AMER HLDGS has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 9.37% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2447.02368.0
EBITDA ($mil)471.8451.2
EBIT ($mil)343.7328.8
Net Income ($mil)192.2164.1

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)365.5696.3
Total Assets ($mil)14428.014410.4
Total Debt ($mil)5921.16394.9
Equity ($mil)5650.75166.5

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin36.1336.12
EBITDA Margin19.2819.05
Operating Margin14.0513.89
Sales Turnover0.670.64
Return on Assets5.264.15
Return on Equity13.4511.58
Debt Q1 FY17 Q1 FY16
Current Ratio1.421.67
Interest Expense52.454.5
Interest Coverage6.566.03

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)102.6102.1
Div / share0.00.0
Book value / share55.0850.6
Institutional Own % n/a n/a
Avg Daily Volume713189.0788610.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.56 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 2.83 indicates valuation on par with the S&P 500 average of 3.07 and a discount versus the industry average of 3.49. The price-to-sales ratio is below the S&P 500 average, but well above the industry average. Upon assessment of these and other key valuation criteria, LABORATORY CP OF AMER HLDGS proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LH 21.50 Peers 24.56   LH 12.47 Peers 13.84

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LH is trading at a discount to its peers.


Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LH is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
LH 15.29 Peers 17.34   LH 0.63 Peers 1.36

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

LH is trading at a valuation on par with its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LH trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LH 2.83 Peers 3.49   LH 24.95 Peers 18.13

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LH is trading at a discount to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

LH is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LH 1.65 Peers 0.93   LH 5.03 Peers 9.31

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LH is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

LH significantly trails its peers on the basis of sales growth



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