LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
270.87 USD
+1.98 (+0.74%)
270.87 USD
0 (0%)
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 100 industry peers in the Health Care Providers & Services industry. LH has only an average score on both its financial health and profitability. LH has a decent growth rate and is not valued too expensively.
1. Profitability
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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.68%, LH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.83%, LH is in the better half of the industry, outperforming 71.00% of the companies in the same industry.
- LH's Return On Invested Capital of 6.32% is fine compared to the rest of the industry. LH outperforms 64.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.19%.
- The 3 year average ROIC (6.31%) for LH is below the current ROIC(6.32%), indicating increased profibility in the last year.
| 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
- LH has a Profit Margin of 6.21%. 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.
- LH's Operating Margin of 9.92% is fine compared to the rest of the industry. LH outperforms 79.00% 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 28.45%, LH is in line with its industry, outperforming 57.00% of the companies in the same 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LH is destroying value.
- Compared to 1 year ago, LH has less shares outstanding
- Compared to 5 years ago, LH has less shares outstanding
- LH has a worse debt/assets ratio than last year.
2.2 Solvency
- LH has an Altman-Z score of 3.16. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
- LH's Altman-Z score of 3.16 is fine compared to the rest of the industry. LH outperforms 66.00% of its industry peers.
- LH has a debt to FCF ratio of 4.09. This is a neutral value as LH would need 4.09 years to pay back of all of its debts.
- LH's Debt to FCF ratio of 4.09 is fine compared to the rest of the industry. LH outperforms 69.00% of its industry peers.
- LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
- The Debt to Equity ratio of LH (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.76
WACC8.36%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that LH should not have too much problems paying its short term obligations.
- LH has a Current ratio of 1.55. This is comparable to the rest of the industry: LH outperforms 58.00% of its industry peers.
- A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
- LH has a Quick ratio (1.35) which 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.
- Measured over the past 5 years, LH shows a small growth in Earnings Per Share. The EPS has been growing by 5.20% on average per year.
- Looking at the last year, LH shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
- LH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.40% yearly.
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.
- Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y15.41%
EPS Next 2Y11.22%
EPS Next 3Y10.7%
EPS Next 5Y7.93%
Revenue Next Year7.76%
Revenue Next 2Y6.07%
Revenue Next 3Y5.66%
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.
- 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
- A Price/Earnings ratio of 17.12 indicates a rather expensive valuation of LH.
- Based on the Price/Earnings ratio, LH is valued cheaply inside the industry as 81.00% of the companies are valued more expensively.
- LH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 15.03, which indicates a correct valuation of LH.
- 80.00% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. LH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
- 64.00% of the companies in the same industry are more expensive than LH, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 14.34 |
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)3.3
EPS Next 2Y11.22%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.13%, 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 0.59. LH pays more dividend than 86.00% of the companies 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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.
- LH has decreased its dividend 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 3Y10.7%
270.87
+1.98 (+0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-05 2026-02-05
Inst Owners98.13%
Inst Owner Change-0.72%
Ins Owners0.31%
Ins Owner Change-2.44%
Market Cap22.46B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (12.88%)
Short Float %3.82%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP28.24%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.84%
Max EPS beat(2)1.34%
EPS beat(4)1
Avg EPS beat(4)-0.49%
Min EPS beat(4)-1.84%
Max EPS beat(4)1.34%
EPS beat(8)3
Avg EPS beat(8)-0.27%
EPS beat(12)4
Avg EPS beat(12)-0.63%
EPS beat(16)6
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)-1.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.35%
Revenue beat(12)0
Avg Revenue beat(12)-5.86%
Revenue beat(16)0
Avg Revenue beat(16)-13.64%
PT rev (1m)0%
PT rev (3m)1.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 15.03 | ||
| P/S | 1.63 | ||
| P/FCF | 16.26 | ||
| P/OCF | 12.45 | ||
| P/B | 2.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)15.82
EY5.84%
EPS(NY)18.02
Fwd EY6.65%
FCF(TTM)16.66
FCFY6.15%
OCF(TTM)21.76
OCFY8.03%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.11
PEG (5Y)3.3
Graham Number193.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.83% | ||
| ROCE | 8.73% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 20.66% | ||
| OM | 9.92% | ||
| PM (TTM) | 6.21% | ||
| GM | 28.45% | ||
| FCFM | 10.03% |
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%
ROICexgc growth 3Y-23.52%
ROICexgc 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-Score9
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 77.99% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 5.52 | ||
| Cash Conversion | 94.58% | ||
| Profit Quality | 161.46% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 3.16 |
F-Score9
WACC8.36%
ROIC/WACC0.76
Cap/Depr(3y)76.91%
Cap/Depr(5y)70.72%
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)9.71%
EPS 3Y-20.05%
EPS 5Y5.2%
EPS Q2Q%19.43%
EPS Next Y15.41%
EPS Next 2Y11.22%
EPS Next 3Y10.7%
EPS Next 5Y7.93%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y-0.32%
Revenue growth 5Y2.4%
Sales Q2Q%8.58%
Revenue Next Year7.76%
Revenue Next 2Y6.07%
Revenue Next 3Y5.66%
Revenue Next 5Y4.05%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year32.28%
EBIT Next 3Y13.96%
EBIT Next 5Y12.85%
FCF growth 1Y38.44%
FCF growth 3Y-25.49%
FCF growth 5Y0.97%
OCF growth 1Y28.67%
OCF growth 3Y-20.11%
OCF growth 5Y1.88%
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 17.12 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 15.41% in the next year.