Laboratory Corp. of America Holdings

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LH : NYSE : Health Services
$170.29 -3.5 | -2.0%
Today's Range: 169.83 - 173.62
Avg. Daily Volume: 617700.0
03/19/18 - 3:40 PM ET

Financial Analysis

LABORATORY CP OF AMER HLDGS's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LABORATORY CP OF AMER HLDGS has average liquidity. Currently, the Quick Ratio is 1.06 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 24.05% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)2796.32428.4
EBITDA ($mil)538.3469.3
EBIT ($mil)393.3339.0
Net Income ($mil)706.8184.4

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)316.7433.6
Total Assets ($mil)16568.014247.0
Total Debt ($mil)6762.15849.5
Equity ($mil)6830.05505.8

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin35.6935.81
EBITDA Margin19.2519.32
Operating Margin14.0713.96
Sales Turnover0.630.68
Return on Assets7.655.13
Return on Equity18.5613.29
Debt Q4 FY17 Q4 FY16
Current Ratio1.311.36
Interest Expense67.852.9
Interest Coverage5.86.41

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)101.9102.7
Div / share0.00.0
Book value / share67.0353.61
Institutional Own % n/a n/a
Avg Daily Volume627713.0668844.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 19.64 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 25.66. For additional comparison, its price-to-book ratio of 2.59 indicates a discount versus the S&P 500 average of 3.28 and a discount versus the industry average of 3.56. The price-to-sales ratio is well 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 14.24 Peers 19.64   LH 12.14 Peers 12.11

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

LH is trading at a significant 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 14.13 Peers 15.59   LH NM Peers 0.98

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LH 2.59 Peers 3.56   LH 74.42 Peers 54.87

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 significant 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 1.70 Peers 0.95   LH 8.29 Peers 6.35

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.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

LH has a sales growth rate that significantly exceeds its peers.



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