LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LH • US5049221055
270.29 USD
-1.23 (-0.45%)
At close: Feb 2, 2026
270.29 USD
0 (0%)
After Hours: 2/2/2026, 3:42:36 PM
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 102 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. LH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- LH had positive earnings in the past year.
- LH had a positive operating cash flow in the past year.
- Each year in the past 5 years LH has been profitable.
- In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
- LH has a better Return On Assets (4.68%) than 75.49% of its industry peers.
- Looking at the Return On Equity, with a value of 9.83%, LH is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- LH has a Return On Invested Capital of 6.32%. This is in the better half of the industry: LH outperforms 64.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.16%.
- The last Return On Invested Capital (6.32%) for LH is above the 3 year average (6.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROIC | 6.32% |
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
- With an excellent Profit Margin value of 6.21%, LH belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
- In the last couple of years the Profit Margin of LH has declined.
- Looking at the Operating Margin, with a value of 9.92%, LH is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- In the last couple of years the Operating Margin of LH has declined.
- LH has a Gross Margin (28.45%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of LH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% |
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.
- 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.
- LH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.17 indicates that LH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LH (3.17) is better than 65.69% of its industry peers.
- The Debt to FCF ratio of LH is 4.09, which is a neutral value as it means it would take LH, 4.09 years of fcf income to pay off all of its debts.
- LH has a Debt to FCF ratio of 4.09. This is in the better half of the industry: LH outperforms 69.61% of its industry peers.
- A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.59, LH is in line with its industry, outperforming 57.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.76
WACC8.31%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.55, LH is in line with its industry, outperforming 57.84% of the companies in the same industry.
- A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
- The Quick ratio of LH (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.71% over the past year.
- LH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.20% yearly.
- Looking at the last year, LH shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
- Measured over the past years, LH shows a small growth in Revenue. The Revenue has been growing by 2.40% on average per year.
EPS 1Y (TTM)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
3.2 Future
- The Earnings Per Share is expected to grow by 7.93% on average over the next years.
- LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.38%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
EPS Next 5Y7.93%
Revenue Next Year7.75%
Revenue Next 2Y6.1%
Revenue Next 3Y5.71%
Revenue Next 5Y4.05%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.09, LH is valued on the expensive side.
- Based on the Price/Earnings ratio, LH is valued cheaper than 81.37% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, LH is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.00 indicates a correct valuation of LH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 77.45% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of LH to the average of the S&P500 Index (25.57), we can say LH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 15 |
4.2 Price Multiples
- LH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LH is cheaper than 60.78% of the companies in the same industry.
- 72.55% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.23 | ||
| EV/EBITDA | 14.45 |
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)1.11
PEG (5Y)3.29
EPS Next 2Y11.22%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.07%, LH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.47, LH pays a better dividend. On top of this LH pays more dividend than 86.27% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
- On average, the dividend of LH grows each year by 96.38%, which is quite nice.
- 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
- LH pays out 28.24% of its income as dividend. This is a sustainable payout ratio.
- LH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.24%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
LABCORP HOLDINGS INC / LH FAQ
What is the ChartMill fundamental rating of LABCORP HOLDINGS INC (LH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LH.
What is the valuation status for LH stock?
ChartMill assigns a valuation rating of 5 / 10 to LABCORP HOLDINGS INC (LH). This can be considered as Fairly Valued.
What is the profitability of LH stock?
LABCORP HOLDINGS INC (LH) has a profitability rating of 6 / 10.
What is the valuation of LABCORP HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 17.09 and the Price/Book (PB) ratio is 2.58.
What is the expected EPS growth for LABCORP HOLDINGS INC (LH) stock?
The Earnings per Share (EPS) of LABCORP HOLDINGS INC (LH) is expected to grow by 15.38% in the next year.