LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

Current stock price

263 USD
-1.09 (-0.41%)
At close:
263 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.
  • 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

  • The Return On Assets of LH (4.77%) is better than 76.24% of its industry peers.
  • With a decent Return On Equity value of 10.17%, LH is doing good in the industry, outperforming 67.33% of the companies in the same industry.
  • LH's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. LH outperforms 72.28% of its industry peers.
  • LH had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 8.94%.
  • The 3 year average ROIC (6.71%) for LH is below the current ROIC(7.65%), indicating increased profibility in the last year.
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 better Profit Margin (6.28%) than 83.17% of its industry peers.
  • LH's Profit Margin has declined in the last couple of years.
  • LH has a Operating Margin of 10.87%. This is amongst the best in the industry. LH outperforms 80.20% of its industry peers.
  • LH's Operating Margin has declined in the last couple of years.
  • LH has a Gross Margin (28.76%) which is in line with its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LH is destroying value.
  • LH has less shares outstanding than it did 1 year ago.
  • LH has less shares outstanding than it did 5 years ago.
  • LH has a better debt/assets ratio than last year.
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

  • 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.
  • LH has a better Altman-Z score (3.10) than 68.32% of its industry peers.
  • LH has a debt to FCF ratio of 4.69. This is a neutral value as LH would need 4.69 years to pay back of all of its debts.
  • LH has a better Debt to FCF ratio (4.69) than 62.38% 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 3.1
ROIC/WACC0.96
WACC7.98%
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.
  • LH has a Current ratio of 1.42. This is comparable to the rest of the industry: LH outperforms 56.44% of its industry peers.
  • LH has a Quick Ratio of 1.23. 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 Quick ratio of 1.23. This is comparable to the rest of the industry: LH outperforms 54.46% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • LH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.04% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
  • LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
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

  • 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.
  • 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.
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 16.00.
  • Based on the Price/Earnings ratio, LH is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, LH is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 14.40, which indicates a correct valuation of LH.
  • 79.21% 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 (23.28), we can say LH is valued slightly cheaper.
Industry RankSector Rank
PE 16
Fwd PE 14.4
LH Price Earnings VS Forward Price EarningsLH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 61.39% of the companies in the same industry.
  • 61.39% 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 17.97
EV/EBITDA 12.19
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.
  • LH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
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 1.09%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.50, LH pays a better dividend. On top of this LH pays more dividend than 86.14% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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.
  • LH has decreased its dividend 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

  • 27.46% of the earnings are spent on dividend by LH. This is a low number and 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 (3/20/2026, 8:05:57 PM)

After market: 263 0 (0%)

263

-1.09 (-0.41%)

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 Cap21.67B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target309.93 (17.84%)
Short Float %3.91%
Short Ratio4.43
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
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
Fwd PE 14.4
P/S 1.55
P/FCF 17.97
P/OCF 13.21
P/B 2.51
P/tB N/A
EV/EBITDA 12.19
EPS(TTM)16.44
EY6.25%
EPS(NY)18.27
Fwd EY6.95%
FCF(TTM)14.64
FCFY5.56%
OCF(TTM)19.91
OCFY7.57%
SpS169.32
BVpS104.61
TBVpS-21.43
PEG (NY)1.44
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 3.1
F-Score8
WACC7.98%
ROIC/WACC0.96
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.


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 16 and the Price/Book (PB) ratio is 2.51.


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 11.11% in the next year.