LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

269.67 USD
-6.25 (-2.27%)
At close: Mar 6, 2026
269.67 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This LH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 101 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of LH get a neutral evaluation. Nothing too spectacular is happening here. LH has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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.
  • 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.
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

  • LH's Return On Assets of 4.77% is fine compared to the rest of the industry. LH outperforms 76.24% of its industry peers.
  • LH's Return On Equity of 10.17% is fine compared to the rest of the industry. LH outperforms 69.31% of its industry peers.
  • With a decent Return On Invested Capital value of 7.65%, LH is doing good in the industry, outperforming 71.29% of the companies in the same industry.
  • LH had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 9.07%.
  • 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 83.17% of its industry peers.
  • In the last couple of years the Profit Margin of LH has declined.
  • LH has a better Operating Margin (10.87%) than 80.20% of its industry peers.
  • In the last couple of years the Operating Margin of LH has declined.
  • LH has a Gross Margin of 28.76%. This is comparable to the rest of the industry: LH outperforms 58.42% of 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LH 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 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 3.17. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.17, LH is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of LH (4.69) is better than 66.34% 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.
  • The Debt to Equity ratio of LH (0.60) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.69
Altman-Z 3.17
ROIC/WACC0.97
WACC7.85%
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 (1.42) which is in line with 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 (1.23) which is in line with 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.
  • 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.
  • Looking at the last year, LH shows a small growth in Revenue. The Revenue has grown by 7.25% in the last year.
  • The Revenue has been decreasing by -0.04% on average over the past years.
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.
  • Based on estimates for the next years, LH will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y9.56%
EPS Next 2Y9.34%
EPS Next 3Y9.51%
EPS Next 5Y6.59%
Revenue Next Year4.51%
Revenue Next 2Y4.74%
Revenue Next 3Y4.6%
Revenue Next 5Y3.15%

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 16.40.
  • LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 77.23% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, LH is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 14.97, LH is valued correctly.
  • Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 78.22% of the companies in the same industry.
  • LH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 16.4
Fwd PE 14.97
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 64.36% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 63.37% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.54
EV/EBITDA 12.74
LH Per share dataLH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • The 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)1.72
PEG (5Y)N/A
EPS Next 2Y9.34%
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 1.00%, LH has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.49, LH pays a better dividend. On top of this LH pays more dividend than 86.14% of the companies listed in the same industry.
  • With a Dividend Yield of 1.00, LH pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1%

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 2Y9.34%
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 (3/6/2026, 8:04:00 PM)

After market: 269.67 0 (0%)

269.67

-6.25 (-2.27%)

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 Owners98.13%
Inst Owner Change5.62%
Ins Owners0.31%
Ins Owner Change1.09%
Market Cap22.36B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target309.93 (14.93%)
Short Float %3.65%
Short Ratio4
Dividend
Industry RankSector Rank
Dividend Yield 1%
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)1.37%
PT rev (3m)1.43%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 16.4
Fwd PE 14.97
P/S 1.6
P/FCF 18.54
P/OCF 13.63
P/B 2.59
P/tB N/A
EV/EBITDA 12.74
EPS(TTM)16.44
EY6.1%
EPS(NY)18.01
Fwd EY6.68%
FCF(TTM)14.55
FCFY5.39%
OCF(TTM)19.79
OCFY7.34%
SpS168.3
BVpS103.98
TBVpS-21.3
PEG (NY)1.72
PEG (5Y)N/A
Graham Number196.12
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 3.17
F-Score8
WACC7.85%
ROIC/WACC0.97
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 Y9.56%
EPS Next 2Y9.34%
EPS Next 3Y9.51%
EPS Next 5Y6.59%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y5.55%
Revenue growth 5Y-0.04%
Sales Q2Q%5.6%
Revenue Next Year4.51%
Revenue Next 2Y4.74%
Revenue Next 3Y4.6%
Revenue Next 5Y3.15%
EBIT growth 1Y33.23%
EBIT growth 3Y-4.71%
EBIT growth 5Y-12.77%
EBIT Next Year28.22%
EBIT Next 3Y12.76%
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 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 16.4 and the Price/Book (PB) ratio is 2.59.


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 9.56% in the next year.