LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

Current stock price

257.14 USD
-2.43 (-0.94%)
At close:
257.14 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

  • In the past year LH was profitable.
  • In the past year LH had a positive cash flow from operations.
  • In the past 5 years LH has always been profitable.
  • LH had a positive operating cash flow in each of the past 5 years.
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

  • With a decent Return On Assets value of 4.77%, LH is doing good in the industry, outperforming 76.00% of the companies in the same industry.
  • LH has a better Return On Equity (10.17%) than 69.00% of its industry peers.
  • LH has a better Return On Invested Capital (7.65%) than 74.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LH is in line with the industry average of 8.40%.
  • 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

  • LH has a Profit Margin of 6.28%. This is amongst the best in the industry. LH outperforms 83.00% of its industry peers.
  • In the last couple of years the Profit Margin of LH has declined.
  • The Operating Margin of LH (10.87%) is better than 81.00% of its industry peers.
  • LH's Operating Margin has declined in the last couple of years.
  • LH's Gross Margin of 28.76% is in line compared to the rest of the industry. LH outperforms 59.00% of its industry peers.
  • In the last couple of years the Gross Margin of LH has declined.
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.
  • Compared to 1 year ago, LH has less shares outstanding
  • Compared to 5 years ago, LH has less shares outstanding
  • Compared to 1 year ago, LH has an improved debt to assets ratio.
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 3.08 indicates that LH is not in any danger for bankruptcy at the moment.
  • LH has a Altman-Z score of 3.08. This is in the better half of the industry: LH outperforms 69.00% 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.
  • With a decent Debt to FCF ratio value of 4.69, LH is doing good in the industry, outperforming 61.00% of the companies in the same industry.
  • 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 3.08
ROIC/WACC0.92
WACC8.34%
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 53.00% 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.
  • Looking at the Quick ratio, with a value of 1.23, LH is in line with its industry, outperforming 49.00% of the companies in the same industry.
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

  • LH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.83%, which is quite good.
  • Measured over the past years, LH shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.22% on average per year.
  • LH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.25%.
  • Measured over the past years, LH shows a decrease in Revenue. The Revenue has been decreasing by -0.04% on average per year.
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

  • Based on estimates for the next years, LH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
  • The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y11.45%
EPS Next 2Y9.95%
EPS Next 3Y9.51%
EPS Next 5Y8.36%
Revenue Next Year4.85%
Revenue Next 2Y4.8%
Revenue Next 3Y4.8%
Revenue Next 5Y4.7%

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

  • LH is valuated correctly with a Price/Earnings ratio of 15.64.
  • Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 79.00% of the companies listed in the same industry.
  • LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
  • With a Price/Forward Earnings ratio of 14.03, LH is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 76.00% of the companies listed in the same industry.
  • LH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 15.64
Fwd PE 14.03
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

  • Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 66.00% of the companies in the same industry.
  • 64.00% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.52
EV/EBITDA 12.04
LH Per share dataLH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)1.37
PEG (5Y)N/A
EPS Next 2Y9.95%
EPS Next 3Y9.51%

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

4

5. LH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.09%, LH has a reasonable but not impressive dividend return.
  • LH's Dividend Yield is rather good when compared to the industry average which is at 0.46. LH pays more dividend than 87.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, LH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

  • LH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
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 2Y9.95%
EPS Next 3Y9.51%
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 (4/29/2026, 7:24:46 PM)

After market: 257.14 0 (0%)

257.14

-2.43 (-0.94%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength49.07
Industry Growth88.82
Earnings (Last)02-17
Earnings (Next)04-30
Inst Owners100.01%
Inst Owner Change0.01%
Ins Owners0.39%
Ins Owner Change7.13%
Market Cap21.13B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target313.59 (21.95%)
Short Float %3.96%
Short Ratio5.3
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend2.91
Dividend Growth(5Y)N/A
DP27.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-29
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)1.18%
PT rev (3m)2.57%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.3%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 15.64
Fwd PE 14.03
P/S 1.51
P/FCF 17.52
P/OCF 12.88
P/B 2.45
P/tB N/A
EV/EBITDA 12.04
EPS(TTM)16.44
EY6.39%
EPS(NY)18.32
Fwd EY7.13%
FCF(TTM)14.67
FCFY5.71%
OCF(TTM)19.96
OCFY7.76%
SpS169.75
BVpS104.88
TBVpS-21.48
PEG (NY)1.37
PEG (5Y)N/A
Graham Number196.961 (-23.4%)
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 3.08
F-Score8
WACC8.34%
ROIC/WACC0.92
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 Y11.45%
EPS Next 2Y9.95%
EPS Next 3Y9.51%
EPS Next 5Y8.36%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y5.55%
Revenue growth 5Y-0.04%
Sales Q2Q%5.6%
Revenue Next Year4.85%
Revenue Next 2Y4.8%
Revenue Next 3Y4.8%
Revenue Next 5Y4.7%
EBIT growth 1Y33.23%
EBIT growth 3Y-4.71%
EBIT growth 5Y-12.77%
EBIT Next Year28.32%
EBIT Next 3Y12.23%
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 15.64 and the Price/Book (PB) ratio is 2.45.


How financially healthy is LABCORP HOLDINGS INC?

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