NasdaqGS:LHCG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Excellent 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

LHCG

4.0%

US Healthcare

2.5%

US Market


1 Year Return

44.2%

LHCG

21.5%

US Healthcare

8.4%

US Market

Return vs Industry: LHCG exceeded the US Healthcare industry which returned 21.5% over the past year.

Return vs Market: LHCG exceeded the US Market which returned 8.4% over the past year.


Shareholder returns

LHCGIndustryMarket
7 Day-0.9%4.0%2.5%
30 Day32.3%6.1%5.1%
90 Day33.8%13.3%2.0%
1 Year44.2%44.2%23.2%21.5%10.9%8.4%
3 Year167.3%167.3%36.6%30.4%30.5%21.9%
5 Year348.5%348.5%48.2%38.0%56.9%39.2%

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?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHCG ($162.48) is trading below our estimate of fair value ($209.66)

Significantly Below Fair Value: LHCG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LHCG is poor value based on its PE Ratio (50.9x) compared to the Healthcare industry average (25.6x).

PE vs Market: LHCG is poor value based on its PE Ratio (50.9x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: LHCG is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: LHCG is overvalued based on its PB Ratio (3.5x) compared to the US Healthcare industry average (3x).


Next Steps

Future Growth

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

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHCG's forecast earnings growth (22% per year) is above the savings rate (2.2%).

Earnings vs Market: LHCG's earnings (22% per year) are forecast to grow faster than the US market (21.7% per year).

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

Revenue vs Market: LHCG's revenue (8.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: LHCG's revenue (8.6% 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 (11.4%).


Next Steps

Past Performance

How has LHC Group performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHCG has high quality earnings.

Growing Profit Margin: LHCG's current net profit margins (4.7%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: LHCG's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: LHCG's earnings growth over the past year (27.6%) is below its 5-year average (28.2% per year).

Earnings vs Industry: LHCG earnings growth over the past year (27.6%) exceeded the Healthcare industry 10.1%.


Return on Equity

High ROE: LHCG's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is LHC Group's financial position?


Financial Position Analysis

Short Term Liabilities: LHCG's short term assets ($439.5M) exceed its short term liabilities ($252.4M).

Long Term Liabilities: LHCG's short term assets ($439.5M) exceed its long term liabilities ($434.5M).


Debt to Equity History and Analysis

Debt Level: LHCG's debt to equity ratio (19.5%) is considered satisfactory.

Reducing Debt: LHCG's debt to equity ratio has increased from 14% to 19.5% over the past 5 years.

Debt Coverage: LHCG's debt is well covered by operating cash flow (25%).

Interest Coverage: LHCG's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Keith Myers (60yo)

26.33yrs

Tenure

US$4,660,024

Compensation

Mr. Keith G. Myers has been the Co-Founder, Chairman and Chief Executive Officer of LHC Group, Inc. since 1994 and serves as its President since December 31, 2019. Mr. Myers has been Director of Almost Fam ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD4.66M) is below average for companies of similar size in the US market ($USD7.31M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Myers
Co-Founder26.33yrsUS$4.66m2.94% $150.7m
Joshua Proffitt
CFO & Treasurer4.08yrsUS$3.41m0.27% $13.8m
Nicholas Gachassin
Executive VP & General Counsel1.33yrsUS$862.17k0.020% $1.0m
Bruce Greenstein
Executive VP and Chief Strategy & Innovation Officer1.67yrsUS$1.02m0.059% $3.0m
John Indest
Consultant & Independent Director19.92yrsUS$232.82k0.10% $5.4m
Collin McQuiddy
Senior VP & Chief Accounting Officer0.83yrno data0.0015% $78.0k
Mohammad Ali
Chief Information Officer0.42yrno datano data
Marcus Macip
Executive VP & Chief Administrative Officerno datano datano data
JoAnne Little
Senior VP & Chief Compliance Officer7.33yrsno datano data
Mark Willis
Senior VP & Chief Communications Officerno datano datano data

2.9yrs

Average Tenure

51yo

Average Age

Experienced Management: LHCG's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Myers
Co-Founder26.33yrsUS$4.66m2.94% $150.7m
John Indest
Consultant & Independent Director19.92yrsUS$232.82k0.10% $5.4m
Ronald Nixon
Independent Director18.83yrsUS$244.82k0.096% $4.9m
Clifford Holtz
Independent Director2.5yrsUS$228.32k0.021% $1.1m
Jonathan Goldberg
Independent Director2.5yrsUS$228.32k0.18% $9.0m
Tyree Wilburn
Transitional Advisory Council1.17yrsUS$164.95kno data
William Turner
Independent Director5.75yrsUS$319.06k0.039% $2.0m
Wilbert Tauzin
Lead Independent Director15.33yrsUS$260.82k0.13% $6.7m
Monica Azare
Independent Director12.5yrsUS$235.82k0.091% $4.7m
Jake Delhomme
Member of Founder's Advisory Board6.42yrsno datano data

9.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LHCG's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$5.133b
  • Shares outstanding: 31.59m
  • 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 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, 2019, it operated 553 home health services locations, 110 hospice locations, 107 community-based service locations, 11 long-term acute care hospitals with 13 locations, and 10 HCI locations. The company was founded in 1994 and is based in Lafayette, Louisiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:45
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.