NasdaqGS:LHCG

Stock Analysis Report

Executive Summary

LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has LHC Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LHCG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

LHCG

5.3%

US Healthcare

0.5%

US Market


1 Year Return

37.7%

LHCG

4.4%

US Healthcare

16.1%

US Market

Return vs Industry: LHCG exceeded the US Healthcare industry which returned 4.4% over the past year.

Return vs Market: LHCG exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

LHCGIndustryMarket
7 Day2.4%5.3%0.5%
30 Day14.0%12.3%3.9%
90 Day8.7%15.7%6.6%
1 Year37.7%37.7%6.2%4.4%18.7%16.1%
3 Year200.3%200.3%51.9%45.1%47.2%37.7%
5 Year445.5%445.5%69.6%58.0%61.5%43.7%

Price Volatility Vs. Market

How volatile is LHC Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LHC Group undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHCG ($130.71) is trading below our estimate of fair value ($181.83)

Significantly Below Fair Value: LHCG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LHCG is poor value based on its PE Ratio (42.7x) compared to the Healthcare industry average (21.5x).

PE vs Market: LHCG is poor value based on its PE Ratio (42.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LHCG is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: LHCG is overvalued based on its PB Ratio (2.9x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is LHC Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHCG's forecast earnings growth (26.6% per year) is above the savings rate (2.7%).

Earnings vs Market: LHCG's earnings (26.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LHCG's revenue (7.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: LHCG's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LHCG's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has LHC Group performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHCG has large one-off items impacting its financial results.

Growing Profit Margin: LHCG's current net profit margins (4.6%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: LHCG's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: LHCG's earnings growth over the past year (53.7%) exceeds its 5-year average (27.5% per year).

Earnings vs Industry: LHCG earnings growth over the past year (53.7%) exceeded the Healthcare industry 9.7%.


Return on Equity

High ROE: LHCG's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LHC Group's financial position?


Financial Position Analysis

Short Term Liabilities: LHCG's short term assets ($373.0M) exceeds its short term liabilities ($244.4M)

Long Term Liabilities: LHCG's short term assets ($373.0M) exceeds its long term liabilities (355.9M)


Debt to Equity History and Analysis

Debt Level: LHCG's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: LHCG's debt to equity ratio has reduced from 20% to 15.5% over the past 5 years.

Debt Coverage: LHCG's debt is well covered by operating cash flow (54.8%).

Interest Coverage: LHCG's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

Inventory Level: LHCG has a low level of unsold assets or inventory.

Debt Coverage by Assets: LHCG's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LHCG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LHCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LHCG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LHCG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LHCG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Keith Myers (60yo)

25.8yrs

Tenure

US$4,492,614

Compensation

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 Pres ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD4.49M) is about average for companies of similar size in the US market ($USD5.09M).

Compensation vs Earnings: Keith's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.6yrs

Average Tenure

51yo

Average Age

Experienced Management: LHCG's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LHCG's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$383,06613 Jun 19
Donald Stelly
EntityIndividual
Role
President
President & COO
Shares3,306
Max PriceUS$115.87
SellUS$3,471,38610 Jun 19
John Indest
EntityIndividual
Role
Member of the Board of Directors
Consultant & Director
Shares30,515
Max PriceUS$113.76
SellUS$1,406,40022 May 19
Ronald Nixon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceUS$117.20
SellUS$53,76016 May 19
Donald Stelly
EntityIndividual
Role
President
President & COO
Shares448
Max PriceUS$120.00
SellUS$1,622,06611 Mar 19
Donald Stelly
EntityIndividual
Role
President
President & COO
Shares15,151
Max PriceUS$107.06
SellUS$1,181,28211 Mar 19
Joshua Proffitt
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares11,003
Max PriceUS$107.36
SellUS$306,27007 Dec 18
Tyree Wilburn
EntityIndividual
Role
Member of Advisory Board
Transitional Advisory Council
Shares3,000
Max PriceUS$102.09
SellUS$551,45704 Dec 18
Jeffrey Reibel
EntityIndividual
Shares5,239
Max PriceUS$105.26

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.5%.


Management Team

  • Keith Myers (60yo)

    Co-Founder

    • Tenure: 25.8yrs
    • Compensation: US$4.49m
  • Johnny Indest (67yo)

    Consultant & Director

    • Tenure: 19.4yrs
    • Compensation: US$205.27k
  • Don Stelly (50yo)

    President & COO

    • Tenure: 9yrs
    • Compensation: US$3.59m
  • Josh Proffitt (41yo)

    CFO & Treasurer

    • Tenure: 3.6yrs
    • Compensation: US$3.26m
  • JoAnne Little

    Senior VP & Chief Compliance Officer

    • Tenure: 6.8yrs
  • John Thompson

    Senior VP & Chief Information Officer

    • Tenure: 3.6yrs
  • Marcus Macip

    Executive VP & Chief Administrative Officer

    • Tenure: 0yrs
  • Bruce Greenstein (51yo)

    Executive VP and Chief Strategy & Innovation Officer

    • Tenure: 1.2yrs
    • Compensation: US$1.54m
  • Nicholas Gachassin (52yo)

    Executive VP & General Counsel

    • Tenure: 0.8yrs
  • Collin McQuiddy (42yo)

    SVP & Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Ron Nixon (63yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$201.65k
  • Cliff Holtz (59yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$284.29k
  • Jonathan Goldberg (68yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$284.29k
  • Ty Wilburn (66yo)

    Transitional Advisory Council

    • Tenure: 0.7yrs
    • Compensation: US$287.29k
  • William Turner (53yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$204.65k
  • Keith Myers (60yo)

    Co-Founder

    • Tenure: 25.8yrs
    • Compensation: US$4.49m
  • Johnny Indest (67yo)

    Consultant & Director

    • Tenure: 19.4yrs
    • Compensation: US$205.27k
  • Billy Tauzin (75yo)

    Lead Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$216.65k
  • Monica Azare (52yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$192.65k
  • Jake Delhomme (44yo)

    Member of Founder's Advisory Board

    • Tenure: 5.9yrs

Company Information

LHC Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LHC Group, Inc.
  • Ticker: LHCG
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$4.119b
  • Shares outstanding: 31.51m
  • Website: https://www.lhcgroup.com

Number of Employees


Location

  • LHC Group, Inc.
  • 901 Hugh Wallis Road South
  • Lafayette
  • Louisiana
  • 70508
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LH6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2005
LHCGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2005

Biography

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 nu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:54
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.