LHC Group, Inc.
LHC Group, Inc. Fundamental Analysis
LHC Group, Inc. (LHCG) shows weak financial fundamentals with a PE ratio of 86.41, profit margin of 2.64%, and ROE of 3.81%. The company generates $2.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LHCG's fundamental strength across five key dimensions:
Efficiency Score
WeakLHCG struggles to generate sufficient returns from assets.
Valuation Score
ModerateLHCG shows balanced valuation metrics.
Growth Score
ModerateLHCG shows steady but slowing expansion.
Financial Health Score
ExcellentLHCG maintains a strong and stable balance sheet.
Profitability Score
WeakLHCG struggles to sustain strong margins.
Key Financial Metrics
Is LHCG Expensive or Cheap?
P/E Ratio
LHCG trades at 86.41 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LHCG's PEG of 0.86 indicates potential undervaluation.
Price to Book
The market values LHC Group, Inc. at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.30 times EBITDA. This signals the market has high growth expectations.
How Well Does LHCG Make Money?
Net Profit Margin
For every $100 in sales, LHC Group, Inc. keeps $2.64 as profit after all expenses.
Operating Margin
Core operations generate 3.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.81 in profit for every $100 of shareholder equity.
ROA
LHC Group, Inc. generates $2.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LHC Group, Inc. generates limited operating cash flow of $50.77M, signaling weaker underlying cash strength.
Free Cash Flow
LHC Group, Inc. generates weak or negative free cash flow of $30.85M, restricting financial flexibility.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
LHCG converts 0.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
86.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How LHCG Stacks Against Its Sector Peers
| Metric | LHCG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 86.41 | 29.45 | Worse (Expensive) |
| ROE | 3.81% | 779.00% | Weak |
| Net Margin | 2.64% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.53 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.41 | 4.65 | Neutral |
| ROA | 2.08% | -19344.00% (disorted) | Weak |
LHCG outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LHC Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation