LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

Current stock price

272.74 USD
+5.93 (+2.22%)
At close:
272.74 USD
0 (0%)
After Hours:

This LH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LH Profitability Analysis

1.1 Basic Checks

  • LH had positive earnings in the past year.
  • In the past year LH had a positive cash flow from operations.
  • LH had positive earnings in each of the past 5 years.
  • In the past 5 years LH always reported a positive cash flow from operatings.
LH Yearly Net Income VS EBIT VS OCF VS FCFLH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.77%, LH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • LH has a better Return On Equity (10.17%) than 67.00% of its industry peers.
  • LH's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. LH outperforms 72.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 8.74%.
  • The last Return On Invested Capital (7.65%) for LH is above the 3 year average (6.71%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.77%
ROE 10.17%
ROIC 7.65%
ROA(3y)3.77%
ROA(5y)5.87%
ROE(3y)8.25%
ROE(5y)12.11%
ROIC(3y)6.71%
ROIC(5y)8.38%
LH Yearly ROA, ROE, ROICLH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With an excellent Profit Margin value of 6.28%, LH belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LH has declined.
  • LH has a Operating Margin of 10.87%. This is in the better half of the industry: LH outperforms 80.00% of its industry peers.
  • LH's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 28.76%, LH is in line with its industry, outperforming 58.00% of the companies in the same industry.
  • LH's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.87%
PM (TTM) 6.28%
GM 28.76%
OM growth 3Y-9.72%
OM growth 5Y-12.74%
PM growth 3Y-16.48%
PM growth 5Y-10.81%
GM growth 3Y-2.74%
GM growth 5Y-4.09%
LH Yearly Profit, Operating, Gross MarginsLH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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6

2. LH Health Analysis

2.1 Basic Checks

  • LH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for LH has been reduced compared to 1 year ago.
  • The number of shares outstanding for LH has been reduced compared to 5 years ago.
  • The debt/assets ratio for LH has been reduced compared to a year ago.
LH Yearly Shares OutstandingLH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
LH Yearly Total Debt VS Total AssetsLH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 3.12 indicates that LH is not in any danger for bankruptcy at the moment.
  • LH's Altman-Z score of 3.12 is fine compared to the rest of the industry. LH outperforms 67.00% of its industry peers.
  • The Debt to FCF ratio of LH is 4.69, which is a neutral value as it means it would take LH, 4.69 years of fcf income to pay off all of its debts.
  • LH has a Debt to FCF ratio of 4.69. This is in the better half of the industry: LH outperforms 63.00% of its industry peers.
  • LH has a Debt/Equity ratio of 0.60. This is a neutral value indicating LH is somewhat dependend on debt financing.
  • LH has a Debt to Equity ratio (0.60) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.69
Altman-Z 3.12
ROIC/WACC0.95
WACC8.02%
LH Yearly LT Debt VS Equity VS FCFLH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • LH has a Current Ratio of 1.42. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.42, LH perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
  • A Quick Ratio of 1.23 indicates that LH should not have too much problems paying its short term obligations.
  • LH has a Quick ratio of 1.23. This is comparable to the rest of the industry: LH outperforms 52.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 1.23
LH Yearly Current Assets VS Current LiabilitesLH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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4

3. LH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.83% over the past year.
  • The Earnings Per Share has been decreasing by -7.22% on average over the past years.
  • Looking at the last year, LH shows a small growth in Revenue. The Revenue has grown by 7.25% in the last year.
  • The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)12.83%
EPS 3Y-6.14%
EPS 5Y-7.22%
EPS Q2Q%17.97%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y5.55%
Revenue growth 5Y-0.04%
Sales Q2Q%5.6%

3.2 Future

  • LH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
  • The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y11.11%
EPS Next 2Y9.91%
EPS Next 3Y9.45%
EPS Next 5Y6.59%
Revenue Next Year4.86%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.69%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LH Yearly Revenue VS EstimatesLH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
LH Yearly EPS VS EstimatesLH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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5

4. LH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 16.59, LH is valued correctly.
  • LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 75.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (25.58), we can say LH is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 14.93 indicates a correct valuation of LH.
  • 77.00% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (22.81), we can say LH is valued slightly cheaper.
Industry RankSector Rank
PE 16.59
Fwd PE 14.93
LH Price Earnings VS Forward Price EarningsLH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 61.00% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.64
EV/EBITDA 12.34
LH Per share dataLH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • LH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y9.91%
EPS Next 3Y9.45%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. LH Dividend Analysis

5.1 Amount

  • LH has a Yearly Dividend Yield of 1.07%.
  • LH's Dividend Yield is rather good when compared to the industry average which is at 0.50. LH pays more dividend than 86.00% of the companies in the same industry.
  • With a Dividend Yield of 1.07, LH pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.07%

5.2 History

  • LH has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of LH decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
LH Yearly Dividends per shareLH Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • LH pays out 27.46% of its income as dividend. This is a sustainable payout ratio.
DP27.46%
EPS Next 2Y9.91%
EPS Next 3Y9.45%
LH Yearly Income VS Free CF VS DividendLH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
LH Dividend Payout.LH Dividend Payout, showing the Payout Ratio.LH Dividend Payout.PayoutRetained Earnings

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LH Fundamentals: All Metrics, Ratios and Statistics

LABCORP HOLDINGS INC

NYSE:LH (4/1/2026, 4:24:49 PM)

After market: 272.74 0 (0%)

272.74

+5.93 (+2.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-17
Earnings (Next)04-27
Inst Owners99.89%
Inst Owner Change5.6%
Ins Owners0.34%
Ins Owner Change0%
Market Cap22.47B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target311.79 (14.32%)
Short Float %3.65%
Short Ratio4.42
Dividend
Industry RankSector Rank
Dividend Yield 1.07%
Yearly Dividend2.91
Dividend Growth(5Y)N/A
DP27.46%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-27
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.79%
Min EPS beat(2)-1.84%
Max EPS beat(2)0.26%
EPS beat(4)2
Avg EPS beat(4)-0.15%
Min EPS beat(4)-1.84%
Max EPS beat(4)1.34%
EPS beat(8)4
Avg EPS beat(8)-0.03%
EPS beat(12)5
Avg EPS beat(12)-0.44%
EPS beat(16)6
Avg EPS beat(16)-0.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.43%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-2.8%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)0
Avg Revenue beat(12)-4.2%
Revenue beat(16)0
Avg Revenue beat(16)-9.31%
PT rev (1m)1.26%
PT rev (3m)1.37%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)1.22%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 16.59
Fwd PE 14.93
P/S 1.61
P/FCF 18.64
P/OCF 13.7
P/B 2.61
P/tB N/A
EV/EBITDA 12.34
EPS(TTM)16.44
EY6.03%
EPS(NY)18.27
Fwd EY6.7%
FCF(TTM)14.64
FCFY5.37%
OCF(TTM)19.91
OCFY7.3%
SpS169.32
BVpS104.61
TBVpS-21.43
PEG (NY)1.49
PEG (5Y)N/A
Graham Number196.71
Profitability
Industry RankSector Rank
ROA 4.77%
ROE 10.17%
ROCE 9.74%
ROIC 7.65%
ROICexc 7.92%
ROICexgc 25.61%
OM 10.87%
PM (TTM) 6.28%
GM 28.76%
FCFM 8.64%
ROA(3y)3.77%
ROA(5y)5.87%
ROE(3y)8.25%
ROE(5y)12.11%
ROIC(3y)6.71%
ROIC(5y)8.38%
ROICexc(3y)7.11%
ROICexc(5y)8.91%
ROICexgc(3y)25.11%
ROICexgc(5y)31.96%
ROCE(3y)8.54%
ROCE(5y)10.67%
ROICexgc growth 3Y-5.21%
ROICexgc growth 5Y-15.54%
ROICexc growth 3Y-1.42%
ROICexc growth 5Y-12.05%
OM growth 3Y-9.72%
OM growth 5Y-12.74%
PM growth 3Y-16.48%
PM growth 5Y-10.81%
GM growth 3Y-2.74%
GM growth 5Y-4.09%
F-Score8
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.69
Debt/EBITDA 2.34
Cap/Depr 63.79%
Cap/Sales 3.11%
Interest Coverage 6.96
Cash Conversion 74.66%
Profit Quality 137.59%
Current Ratio 1.42
Quick Ratio 1.23
Altman-Z 3.12
F-Score8
WACC8.02%
ROIC/WACC0.95
Cap/Depr(3y)72.83%
Cap/Depr(5y)71.26%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.64%
Profit Quality(3y)164.54%
Profit Quality(5y)144.06%
High Growth Momentum
Growth
EPS 1Y (TTM)12.83%
EPS 3Y-6.14%
EPS 5Y-7.22%
EPS Q2Q%17.97%
EPS Next Y11.11%
EPS Next 2Y9.91%
EPS Next 3Y9.45%
EPS Next 5Y6.59%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y5.55%
Revenue growth 5Y-0.04%
Sales Q2Q%5.6%
Revenue Next Year4.86%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.69%
EBIT growth 1Y33.23%
EBIT growth 3Y-4.71%
EBIT growth 5Y-12.77%
EBIT Next Year28.08%
EBIT Next 3Y12.64%
EBIT Next 5YN/A
FCF growth 1Y10.05%
FCF growth 3Y-6.47%
FCF growth 5Y-7.21%
OCF growth 1Y3.45%
OCF growth 3Y-5.69%
OCF growth 5Y-5.14%

LABCORP HOLDINGS INC / LH Fundamental Analysis FAQ

What is the ChartMill fundamental rating of LABCORP HOLDINGS INC (LH) stock?

ChartMill assigns a fundamental rating of 5 / 10 to LH.


Can you provide the valuation status for LABCORP HOLDINGS INC?

ChartMill assigns a valuation rating of 5 / 10 to LABCORP HOLDINGS INC (LH). This can be considered as Fairly Valued.


How profitable is LABCORP HOLDINGS INC (LH) stock?

LABCORP HOLDINGS INC (LH) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for LH stock?

The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 16.59 and the Price/Book (PB) ratio is 2.61.


How financially healthy is LABCORP HOLDINGS INC?

The financial health rating of LABCORP HOLDINGS INC (LH) is 6 / 10.