LHCG - Embedded Expectations Analysis - 2021 10 11
LHC Group, Inc. (LHCG:USA) currently trades around corporate averages relative to UAFRS-based (Uniform) earnings, with a 24.4x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about staffing challenges, cost management, and admissions growth.Specifically, management may lack confidence in their ability to gain stronger physician support for taking higher acuity patients into the home, forecast patient volumes and characteristics, and sustain organic admissions growth. Furthermore, management may have concerns about continuing staffing challenges, consulting fees, and recurring COVID-related expenses. Additionally, they may lack confidence in their ability to meet revenue and EBITDA guidance, continue improving home health margins, and maintain a balanced deployment of debt and equity. Finally, they may have concerns about the effectiveness of their formal education reimbursement programs and they may lack confidence in their ability to continue earning more community referrals.
LHC Group is a holding company. Through its subsidiaries, the company provides post-acute health care services to its patients. The company's segments include: home health services, which include nursing, medically-oriented social services and physical, occupational, and speech therapy; hospice services, which include pain and symptom management, emotional and spiritual support, inpatient and respite care, homemaker services, dietary counseling, and family bereavement counseling; and home and community-based services, which include assistance with grooming, medication reminders, meal preparation, assistance with feeding, light housekeeping, respite care, transportation, and errand services.
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