LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
NYSE:LH - New York Stock Exchange, Inc. - US5049221055 - Common Stock - Currency: USD
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 103 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LH was profitable.
LH had a positive operating cash flow in the past year.
In the past 5 years LH has always been profitable.
In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
LH has a Return On Assets of 4.23%. This is in the better half of the industry: LH outperforms 74.76% of its industry peers.
LH has a better Return On Equity (9.01%) than 71.84% of its industry peers.
LH has a better Return On Invested Capital (5.82%) than 60.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROIC | 5.82% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
1.3 Margins
LH has a Profit Margin of 5.66%. This is amongst the best in the industry. LH outperforms 80.58% of its industry peers.
In the last couple of years the Profit Margin of LH has declined.
LH has a better Operating Margin (9.15%) than 78.64% of its industry peers.
In the last couple of years the Operating Margin of LH has declined.
LH has a Gross Margin (28.14%) which is in line with its industry peers.
LH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% |
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
2. Health
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.
Compared to 1 year ago, LH has less shares outstanding
The number of shares outstanding for LH has been reduced compared to 5 years ago.
The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
LH has an Altman-Z score of 3.10. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LH (3.10) is better than 66.02% of its industry peers.
LH has a debt to FCF ratio of 4.48. This is a neutral value as LH would need 4.48 years to pay back of all of its debts.
LH has a Debt to FCF ratio of 4.48. This is in the better half of the industry: LH outperforms 68.93% of its industry peers.
LH has a Debt/Equity ratio of 0.61. This is a neutral value indicating LH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, LH is in line with its industry, outperforming 56.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.68
WACC8.51%
2.3 Liquidity
LH has a Current Ratio of 1.50. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
LH has a Current ratio (1.50) which is in line with its industry peers.
LH has a Quick Ratio of 1.32. This is a normal value and indicates that LH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.32, LH is in line with its industry, outperforming 47.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
LH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.87%.
The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
LH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.98%.
LH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
EPS 1Y (TTM)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
3.2 Future
The Earnings Per Share is expected to grow by 8.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y13.78%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
EPS Next 5Y8.88%
Revenue Next Year7.71%
Revenue Next 2Y6.26%
Revenue Next 3Y5.71%
Revenue Next 5Y3.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.19, which indicates a rather expensive current valuation of LH.
72.82% of the companies in the same industry are more expensive than LH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LH to the average of the S&P500 Index (27.61), we can say LH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.36, the valuation of LH can be described as correct.
Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 73.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, LH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LH is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 64.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
LH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LH may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)3.31
EPS Next 2Y11.55%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
LH has a Yearly Dividend Yield of 1.10%.
LH's Dividend Yield is rather good when compared to the industry average which is at 2.61. LH pays more dividend than 84.47% of the companies in the same industry.
With a Dividend Yield of 1.10, LH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of LH is nicely growing with an annual growth rate of 96.38%!
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)96.38%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.71% of the earnings are spent on dividend by LH. This is a low number and sustainable payout ratio.
LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.71%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
NYSE:LH (7/31/2025, 3:24:10 PM)
260.27
-3.64 (-1.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change-1.25%
Ins Owners0.35%
Ins Owner Change4.2%
Market Cap21.78B
Analysts84.14
Price Target285.13 (9.55%)
Short Float %4.05%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP31.71%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.49%
Min EPS beat(2)-0.37%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.23%
EPS beat(12)4
Avg EPS beat(12)-0.7%
EPS beat(16)7
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.68%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.1%
Revenue beat(12)0
Avg Revenue beat(12)-7.84%
Revenue beat(16)1
Avg Revenue beat(16)-12.95%
PT rev (1m)1.24%
PT rev (3m)3.35%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 14.36 | ||
| P/S | 1.62 | ||
| P/FCF | 17.26 | ||
| P/OCF | 12.86 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.38 |
EPS(TTM)15.14
EY5.82%
EPS(NY)18.13
Fwd EY6.97%
FCF(TTM)15.08
FCFY5.79%
OCF(TTM)20.23
OCFY7.77%
SpS161.1
BVpS101.23
TBVpS-18.79
PEG (NY)1.25
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 9.01% | ||
| ROCE | 8.04% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.08% | ||
| ROICexgc | 19.2% | ||
| OM | 9.15% | ||
| PM (TTM) | 5.66% | ||
| GM | 28.14% | ||
| FCFM | 9.36% |
ROA(3y)4.3%
ROA(5y)6.46%
ROE(3y)9.08%
ROE(5y)13.4%
ROIC(3y)6.31%
ROIC(5y)8.87%
ROICexc(3y)6.66%
ROICexc(5y)9.53%
ROICexgc(3y)24.5%
ROICexgc(5y)35.7%
ROCE(3y)8.72%
ROCE(5y)12.25%
ROICexcg growth 3Y-23.52%
ROICexcg growth 5Y-8.03%
ROICexc growth 3Y-23.85%
ROICexc growth 5Y-3.15%
OM growth 3Y-27.95%
OM growth 5Y-7.41%
PM growth 3Y-31.82%
PM growth 5Y-4.26%
GM growth 3Y-9.83%
GM growth 5Y-0.21%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 45.27% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.41% | ||
| Profit Quality | 165.29% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.1 |
F-Score7
WACC8.51%
ROIC/WACC0.68
Cap/Depr(3y)71.23%
Cap/Depr(5y)67.32%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.56%
Profit Quality(3y)157.09%
Profit Quality(5y)139.08%
High Growth Momentum
Growth
EPS 1Y (TTM)5.87%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%10.41%
EPS Next Y13.78%
EPS Next 2Y11.55%
EPS Next 3Y10.89%
EPS Next 5Y8.88%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%9.51%
Revenue Next Year7.71%
Revenue Next 2Y6.26%
Revenue Next 3Y5.71%
Revenue Next 5Y3.92%
EBIT growth 1Y8.75%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.23%
EBIT Next 3Y14.57%
EBIT Next 5Y11.34%
FCF growth 1Y15.01%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y12.91%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%