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LHC Group

Nasdaq:LHCG
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LHCG
Nasdaq
$4B
Market Cap
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Last updated 2019/05/23 23:57
Company description

LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States. The last earnings update was 14 days ago. More info.

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LHCG Share Price and Events
7 Day Returns
-4%
NasdaqGS:LHCG
2.8%
US Healthcare
0.2%
US Market
1 Year Returns
52.1%
NasdaqGS:LHCG
0.4%
US Healthcare
2.9%
US Market
LHCG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LHC Group (LHCG) -4% 8.6% 2.7% 52.1% 178% 450.7%
US Healthcare 2.8% 7.7% -6.7% 0.4% 23.4% 63.5%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • LHCG outperformed the Healthcare industry which returned 0.4% over the past year.
  • LHCG outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
LHCG
Industry
5yr Volatility vs Market
Related Companies

LHCG Value

 Is LHC Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LHC Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LHC Group.

NasdaqGS:LHCG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LHCG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.688 (1 + (1- 21%) (9.06%)) 		0.824
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.824 * 5.96%) 		7.64%

Discounted Cash Flow Calculation for NasdaqGS:LHCG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LHC Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:LHCG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.64%)
2019 115.90 Analyst x2 107.67
2020 153.25 Analyst x2 132.26
2021 184.22 Est @ 20.21% 147.70
2022 211.78 Est @ 14.96% 157.75
2023 235.70 Est @ 11.29% 163.10
2024 256.26 Est @ 8.72% 164.74
2025 274.01 Est @ 6.93% 163.64
2026 289.54 Est @ 5.67% 160.64
2027 303.40 Est @ 4.79% 156.38
2028 316.05 Est @ 4.17% 151.33
Present value of next 10 years cash flows $1,505.20
NasdaqGS:LHCG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $316.05 × (1 + 2.73%) ÷ (7.64% – 2.73%) 		$6,609.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,609.55 ÷ (1 + 7.64%)10 		$3,164.78
NasdaqGS:LHCG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,505.20 + $3,164.78 		$4,669.98
Equity Value per Share
(USD)		 = Total value / Shares Outstanding
= $4,669.98 / 31.49 		$148.29
NasdaqGS:LHCG Discount to Share Price
Calculation Result
Value per share (USD) From above. $148.29
Current discount Discount to share price of $114.00
= -1 x ($114.00 - $148.29) / $148.29 		23.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LHC Group is available for.
Intrinsic value
23%
Share price is $114 vs Future cash flow value of $148.29
Current Discount Checks
For LHC Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LHC Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LHC Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LHC Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LHC Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LHCG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.52
NasdaqGS:LHCG Share Price ** NasdaqGS (2019-05-23) in USD $114
United States of America Healthcare Industry PE Ratio Median Figure of 56 Publicly-Listed Healthcare Companies 22.38x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LHC Group.

NasdaqGS:LHCG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LHCG Share Price ÷ EPS (both in USD)

= 114 ÷ 2.52

 45.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LHC Group is overvalued based on earnings compared to the US Healthcare industry average.
  • LHC Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does LHC Group's expected growth come at a high price?
Raw Data
NasdaqGS:LHCG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 45.29x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts		 21.8%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 42 Publicly-Listed Healthcare Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:LHCG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 45.29x ÷ 21.8%

 2.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LHC Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on LHC Group's assets?
Raw Data
NasdaqGS:LHCG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $43.23
NasdaqGS:LHCG Share Price * NasdaqGS (2019-05-23) in USD $114
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NasdaqGS:LHCG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LHCG Share Price ÷ Book Value per Share (both in USD)

= 114 ÷ 43.23

 2.64x

* Primary Listing of LHC Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LHC Group is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess LHC Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
    5. LHC Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LHCG Future Performance

 How is LHC Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LHC Group expected to grow at an attractive rate?
  • LHC Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • LHC Group's earnings growth is expected to exceed the United States of America market average.
  • LHC Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LHCG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LHCG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 21.8%
NasdaqGS:LHCG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6.1%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LHCG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LHCG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,432 173 1
2020-12-31 2,232 182 142 11
2019-12-31 2,111 150 122 11
NasdaqGS:LHCG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,021 106 77
2018-12-31 1,810 109 64
2018-09-30 1,591 57 61
2018-06-30 1,354 19 51
2018-03-31 1,109 32 46
2017-12-31 1,063 32 50
2017-09-30 1,004 71 41
2017-06-30 962 79 40
2017-03-31 926 85 38
2016-12-31 900 67 37
2016-09-30 882 66 35
2016-06-30 854 43 34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LHC Group's earnings are expected to grow significantly at over 20% yearly.
  • LHC Group's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LHCG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from LHC Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LHCG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.42 5.42 5.42 1.00
2020-12-31 4.47 4.55 4.37 7.00
2019-12-31 3.89 4.00 3.77 7.00
NasdaqGS:LHCG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.52
2018-12-31 2.31
2018-09-30 2.54
2018-06-30 2.44
2018-03-31 2.57
2017-12-31 2.83
2017-09-30 2.35
2017-06-30 2.28
2017-03-31 2.18
2016-12-31 2.08
2016-09-30 1.97
2016-06-30 1.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LHC Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Healthcare industry
X
Future performance checks
We assess LHC Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LHC Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LHCG Past Performance

  How has LHC Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LHC Group's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LHC Group has delivered over 20% year on year earnings growth in the past 5 years.
  • LHC Group's 1-year earnings growth exceeds its 5-year average (69.7% vs 24.5%)
  • LHC Group's earnings growth has exceeded the US Healthcare industry average in the past year (69.7% vs 2.2%).
Earnings and Revenue History
LHC Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LHC Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LHCG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,021.49 77.44 540.84
2018-12-31 1,809.96 63.57 488.55
2018-09-30 1,591.26 61.46 456.99
2018-06-30 1,353.90 51.13 383.83
2018-03-31 1,109.41 45.64 317.03
2017-12-31 1,062.60 50.11 297.12
2017-09-30 1,003.77 41.50 280.70
2017-06-30 961.62 40.20 275.39
2017-03-31 926.33 38.36 273.20
2016-12-31 900.03 36.58 258.42
2016-09-30 882.35 34.50 269.08
2016-06-30 854.14 33.73 262.55
2016-03-31 827.25 33.22 254.46
2015-12-31 797.12 32.34 247.92
2015-09-30 771.79 30.13 240.18
2015-06-30 756.22 27.46 237.91
2015-03-31 745.35 24.57 237.66
2014-12-31 717.85 21.84 233.90
2014-09-30 689.75 21.27 226.71
2014-06-30 668.05 20.40 221.56
2014-03-31 646.64 20.12 215.99
2013-12-31 644.35 22.34 213.63
2013-09-30 641.52 24.77 209.50
2013-06-30 635.42 25.81 208.92
2013-03-31 627.73 25.99 205.73
2012-12-31 625.69 27.44 204.99
2012-09-30 621.61 27.27 202.95
2012-06-30 615.87 -17.02 203.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LHC Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • LHC Group used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • LHC Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LHC Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LHC Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LHCG Health

 How is LHC Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LHC Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LHC Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LHC Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of LHC Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LHC Group Company Filings, last reported 1 month ago.

NasdaqGS:LHCG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,430.69 325.44 38.52
2018-12-31 1,439.07 243.70 49.36
2018-09-30 1,411.43 255.54 56.97
2018-06-30 1,381.53 254.88 15.37
2018-03-31 528.66 125.22 9.35
2017-12-31 519.98 144.29 2.85
2017-09-30 499.78 119.35 16.92
2017-06-30 458.80 84.67 6.97
2017-03-31 432.66 78.73 16.78
2016-12-31 414.12 87.80 3.26
2016-09-30 401.76 92.63 16.52
2016-06-30 390.45 110.67 19.73
2016-03-31 378.85 96.73 5.59
2015-12-31 370.20 98.78 6.14
2015-09-30 361.45 92.85 61.73
2015-06-30 351.42 40.90 18.27
2015-03-31 340.54 47.95 4.04
2014-12-31 333.11 61.01 0.53
2014-09-30 325.81 65.07 4.88
2014-06-30 319.05 70.12 12.03
2014-03-31 311.38 71.18 3.40
2013-12-31 307.14 23.21 14.01
2013-09-30 301.21 25.14 0.44
2013-06-30 295.42 25.57 7.05
2013-03-31 289.01 23.20 3.40
2012-12-31 283.64 19.50 9.72
2012-09-30 282.62 25.09 0.28
2012-06-30 289.11 8.31 0.39
  • LHC Group's level of debt (22.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (22.8% vs 22.7% today).
  • Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).
Show me more healthy companies in the Healthcare industry
X
Financial health checks
We assess LHC Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. LHC Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LHCG Dividends

 What is LHC Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from LHC Group dividends. Estimated to be 0% next year.
If you bought $2,000 of LHC Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate LHC Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate LHC Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LHCG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LHCG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as LHC Group has not reported any payouts.
  • Unable to verify if LHC Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of LHC Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as LHC Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of LHC Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess LHC Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LHC Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. LHC Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LHCG Management

 What is the CEO of LHC Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keith Myers
COMPENSATION $4,492,614
AGE 59
TENURE AS CEO 25.3 years
CEO Bio

Mr. Keith G. Myers has been the Co-Founder, Chairman and Chief Executive Officer of LHC Group, Inc. since 1994. Mr. Myers has been Director of Almost Family, Inc. since April 1, 2018. He served as the President of LHC Group Inc. from 1994 to 1997 and again resumed the role of President from August 20, 2009 to November 2010. Prior to LHC Group LLC, he Founded, Co-Owned and operated Louisiana Premium Seafoods Inc. He serves as a Director at LHC Group Inc. He received credentials in 1999 from the National Association for Home Care with regard to the home/hospice care sector. Mr. Myers was named Business Executive of the Year in 1999 by Louisiana Rural Health Association and Entrepreneur of the Year in the healthcare category by Ernst & Young LLP with respect to the Texas, Louisiana and Mississippi Region.Mr. Myers has been an active participant in the Home Health Top 100 since 2002 and has participated in the preparation of numerous white papers and presentations to members of both the U.S. Senate and House of Representatives, specifically related to health care reimbursement methodologies. In June 2003, Mr. Myers was named the Regional Entrepreneur of the Year for outstanding performance in the field of Health Services and was officially inducted as a lifetime member of The Ernst & Young National Entrepreneur of the Year Hall of Fame in November 2003.

CEO Compensation
  • Keith's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Keith's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the LHC Group management team in years:

4.7
Average Tenure
50
Average Age
  • The tenure for the LHC Group management team is about average.
Management Team

Keith Myers

TITLE
Co-Founder
COMPENSATION
$4M
AGE
59
TENURE
25.3 yrs

Don Stelly

TITLE
President & COO
COMPENSATION
$4M
AGE
49
TENURE
8.5 yrs

Josh Proffitt

TITLE
CFO & Treasurer
COMPENSATION
$3M
AGE
40
TENURE
3.1 yrs

Bruce Greenstein

TITLE
Executive VP and Chief Strategy & Innovation Officer
COMPENSATION
$2M
AGE
50
TENURE
0.7 yrs

Johnny Indest

TITLE
Consultant & Director
COMPENSATION
$205K
AGE
66
TENURE
7.7 yrs

Jeff Reibel

TITLE
Senior VP & Chief Accounting Officer
AGE
46

John Thompson

TITLE
Senior VP & Chief Information Officer
TENURE
3.1 yrs

Marcus Macip

TITLE
Executive VP & Chief Administrative Officer

JoAnne Little

TITLE
Senior VP & Chief Compliance Officer
TENURE
6.3 yrs

Nicholas Gachassin

TITLE
Executive VP & General Counsel
AGE
51
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the LHC Group board of directors in years:

8.5
Average Tenure
60.5
Average Age
  • The tenure for the LHC Group board of directors is about average.
Board of Directors

Johnny Indest

TITLE
Consultant & Director
COMPENSATION
$205K
AGE
66
TENURE
18.9 yrs

Ron Nixon

TITLE
Director
COMPENSATION
$202K
AGE
62
TENURE
17.8 yrs

Keith Myers

TITLE
Co-Founder
COMPENSATION
$4M
AGE
59
TENURE
25.3 yrs

Billy Tauzin

TITLE
Lead Independent Director
COMPENSATION
$217K
AGE
74
TENURE
14.3 yrs

Monica Azare

TITLE
Independent Director
COMPENSATION
$193K
AGE
51
TENURE
11.5 yrs

William Turner

TITLE
Independent Director
COMPENSATION
$205K
AGE
52
TENURE
4.8 yrs

Jake Delhomme

TITLE
Member of Founder's Advisory Board
AGE
43
TENURE
5.4 yrs

Jonathan Goldberg

TITLE
Director
COMPENSATION
$284K
AGE
67
TENURE
1.5 yrs

Cliff Holtz

TITLE
Director
COMPENSATION
$284K
AGE
58
TENURE
1.5 yrs

Ty Wilburn

TITLE
Transitional Advisory Council
COMPENSATION
$287K
AGE
65
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • LHC Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Sell Ronald Nixon Individual 22. May 19 22. May 19 -12,000 $117.20 $-1,406,400
16. May 19 Sell Donald Stelly Individual 16. May 19 16. May 19 -448 $120.00 $-53,760
11. Mar 19 Sell Donald Stelly Individual 11. Mar 19 11. Mar 19 -15,151 $107.06 $-1,622,066
11. Mar 19 Sell Joshua Proffitt Individual 11. Mar 19 11. Mar 19 -11,003 $107.36 $-1,181,282
07. Dec 18 Sell Tyree Wilburn Individual 07. Dec 18 07. Dec 18 -3,000 $102.09 $-306,270
04. Dec 18 Sell Jeffrey Reibel Individual 04. Dec 18 04. Dec 18 -5,239 $105.26 $-551,457
06. Nov 18 Sell Keith Myers Individual 05. Nov 18 06. Nov 18 -75,000 $95.16 $-7,132,303
07. Sep 18 Sell Donald Stelly Individual 07. Sep 18 07. Sep 18 -2,756 $99.52 $-273,730
22. Aug 18 Sell Jeffrey Reibel Individual 20. Aug 18 20. Aug 18 -1,921 $94.12 $-180,805
11. Jun 18 Sell Donald Stelly Individual 11. Jun 18 11. Jun 18 -3,307 $79.76 $-263,766
X
Management checks
We assess LHC Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. LHC Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LHCG News

Simply Wall St News

Is There An Opportunity With LHC Group, Inc.'s (NASDAQ:LHCG) 23% Undervaluation?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $115.90 $153.25 $184.22 $211.78 $235.70 $256.26 $274.01 $289.54 $303.40 $316.05 Growth Rate Estimate Source Analyst x2 Analyst x2 Est @ 20.21% Est @ 14.96% Est @ 11.29% Est @ 8.72% Est @ 6.93% Est @ 5.67% Est @ 4.79% Est @ 4.17% Present Value ($, Millions) Discounted @ 7.63% $107.68 $132.29 $147.75 $157.82 $163.19 $164.85 $163.77 $160.78 $156.53 $151.50 Present Value of 10-year Cash Flow (PVCF)= $1.51b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$316m × (1 + 2.7%) ÷ (7.6% – 2.7%) = US$6.6b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$6.6b ÷ ( 1 + 7.6%)10 = $3.18b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $4.68b. … NasdaqGS:LHCG Intrinsic value, May 14th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St - –

How Many LHC Group, Inc. (NASDAQ:LHCG) Shares Have Insiders Sold, In The Last Year?

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Keith Myers, sold US$7.1m worth of shares at a price of US$95.16 per share. … That means that even when the share price was below the current price of US$112, an insider wanted to cash in some shares … As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation

Simply Wall St - –

Before You Buy LHC Group, Inc. (NASDAQ:LHCG), Consider Its Volatility

(NASDAQ:LHCG), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St - –

Our Take On LHC Group, Inc.'s (NASDAQ:LHCG) CEO Salary

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Keith Myers's Compensation Compare With Similar Sized Companies. … has a market cap of US$3.3b, and is paying total annual CEO compensation of US$2.8m.

Simply Wall St - –

Is LHC Group, Inc.’s (NASDAQ:LHCG) Cash Outlook Optimistic?

Today we will examine LHC Group’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … LHC Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing LHC Group’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St - –

The LHC Group (NASDAQ:LHCG) Share Price Has Soared 407%, Delighting Many Shareholders

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … This EPS growth is lower than the 38% average annual increase in the share price.

Simply Wall St - –

A Closer Look At LHC Group, Inc.'s (NASDAQ:LHCG) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.055 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

Does LHC Group, Inc.'s (NASDAQ:LHCG) 27% Earnings Growth Make It An Outperformer?

For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. … Did LHCG's recent earnings growth beat the long-term trend and the industry. … LHCG's trailing twelve-month earnings (from 31 December 2018) of US$64m has.

Simply Wall St - –

Should You Be Tempted To Sell LHC Group, Inc. (NASDAQ:LHCG) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … LHC Group has a price to earnings ratio of 43.41, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St - –

Has LHC Group, Inc. (NASDAQ:LHCG) Got Enough Cash?

Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:LHCG) with a size of US$3.4b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St - –

LHCG Company Info

Description

LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States. The company’s Home Health Services segment offers home nursing services, including wound care and dressing changes, cardiac rehabilitation, infusion therapy, pain management, pharmaceutical administration, skilled observation and assessment, and patient education; medically-oriented social services; and physical, occupational, and speech therapy services. Its Hospice Services segment provides pain and symptom management accompanied by palliative medication, emotional and spiritual support, inpatient and respite care, homemaker services, dietary counseling, family bereavement counseling, and social worker visits. The company’s Home and Community-Based Services segment offers services, such as assistance with grooming, medication reminders, meal preparation, assistance with feeding, light housekeeping, respite care, transportation, and errand services to patients in their home or in a medical facility. Its Facility-Based Services segment serves patients suffering from respiratory failure, neuromuscular disorders, cardiac disorders, non-healing wounds, renal disorders, cancer, head and neck injuries, and mental disorders, as well as treats patients diagnosed with musculoskeletal impairments; and operates institutional pharmacy, a family health center, a rural health clinic, and a retail pharmacy, as well as offers physical therapy services. The company’s Healthcare Innovations (HCI) Services segment provides strategic health management services to Accountable Care Organizations. As of December 31, 2018, it operated 543 home health services locations, 104 hospice locations, 81 community-based service locations, 10 long-term acute care hospitals with 12 locations, and 12 HCI locations. The company was founded in 1994 and is based in Lafayette, Louisiana.

Details
Name: LHC Group, Inc.
LHCG
Exchange: NasdaqGS
Founded: 1994
$3,590,213,970
31,493,105
Website: http://www.lhcgroup.com
Address: LHC Group, Inc.
901 Hugh Wallis Road South,
Lafayette,
Louisiana, 70508,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LHCG Common Stock Nasdaq Global Select US USD 09. Jun 2005
DB LH6 Common Stock Deutsche Boerse AG DE EUR 09. Jun 2005
Number of employees
Current staff
Staff numbers
22,792
LHC Group employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 23:57
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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