LHC Stock Analysis, Valuation (NASDAQ:LHCG)

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$65.47 $0.59 (0.91%) LHCG stock closing price Sep 22, 2017 (Closing)
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LHC
Updated on : Sep 22, 2017
previous close
LHCG 65.5 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
8.2%
Sector Average:
-2.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
84.7M
Debt/Equity Ratio:
 0.19
Compared to the industry
Cash Flow
Operating cash flow:
$8.1M
Net Income:
$11.3M
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
PS Valuation
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LHCG PS :
1.2
Industry PS :
5.3
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.5%
Return on Equity:
9.9%
Free Cash Flow Margin:
2%
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LHC Stock Analysis

22 5 2

View LHC stock analysis video. This is our analyst opinion covering the buy and sell arguments for LHCG stock.

LHC Group, Inc. Stock Rating 3.6/5

Our LHC stock opinion is based on fundamentals of the company. This LHC stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy LHCG stock?

  • The TTM operating margin was good at 8.2% for LHC.
  • Net margins came in at average 4.1% for LHC over the last twelve months.
  • LHC has a lower debt burden than its peers in the Medical sector, with a debt/equity ratio of  0.19.
  • LHCG stock is trading at a favorable price to sales multiple of 1.2 as against the Medical-Outpatient-Home care industry average multiple of 5.3.
  • LHC has an attractive ROIC (Return on Invested Capital) of 10.5%
  • LHC has a good Return On Equity (ROE) of 9.9%.

Should you sell LHCG stock?

  • Cash flow from operations is 0.7 times net income which is a negative signal.

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