LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

Current stock price

270.62 USD
+3.77 (+1.41%)
At close:
270.84 USD
+0.22 (+0.08%)
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.
  • LH had a positive operating cash flow in the past year.
  • LH had positive earnings in each of the past 5 years.
  • 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

  • The Return On Assets of LH (4.77%) is better than 76.24% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.17%, LH is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
  • The Return On Invested Capital of LH (7.65%) is better than 73.27% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 8.92%.
  • 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

  • With an excellent Profit Margin value of 6.28%, LH belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
  • LH's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 10.87%, LH belongs to the best of the industry, outperforming 80.20% of the companies in the same industry.
  • LH's Operating Margin has declined in the last couple of years.
  • The Gross Margin of LH (28.76%) is comparable to the rest of the industry.
  • 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.
  • The number of shares outstanding for LH has been reduced compared to 1 year ago.
  • Compared to 5 years ago, LH has less shares outstanding
  • 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 3.14. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
  • LH has a Altman-Z score of 3.14. This is in the better half of the industry: LH outperforms 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.
  • The Debt to FCF ratio of LH (4.69) is better than 65.35% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that LH is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.60, LH is in line with its industry, outperforming 58.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.69
Altman-Z 3.14
ROIC/WACC0.97
WACC7.89%
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

  • A Current Ratio of 1.42 indicates that LH should not have too much problems paying its short term obligations.
  • The Current ratio of LH (1.42) is comparable to the rest of the industry.
  • A Quick Ratio of 1.23 indicates that LH should not have too much problems paying its short term obligations.
  • LH has a Quick ratio (1.23) which is comparable to the rest of the 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.
  • The Earnings Per Share has been decreasing by -7.22% on average over the past years.
  • The Revenue has been growing slightly by 7.25% in the past year.
  • 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 small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
  • The Revenue is expected to grow by 4.69% on average over the next years.
EPS Next Y11.11%
EPS Next 2Y9.91%
EPS Next 3Y9.45%
EPS Next 5Y6.59%
Revenue Next Year4.86%
Revenue Next 2Y4.88%
Revenue Next 3Y4.78%
Revenue Next 5Y4.69%

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

  • With a Price/Earnings ratio of 16.46, LH is valued correctly.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 26.11. LH is valued slightly cheaper when compared to this.
  • LH is valuated correctly with a Price/Forward Earnings ratio of 14.81.
  • LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 79.21% of the companies in the same industry.
  • LH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.46
Fwd PE 14.81
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

  • LH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LH is cheaper than 61.39% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than the industry average as 63.37% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.49
EV/EBITDA 12.48
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)1.48
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

  • With a Yearly Dividend Yield of 1.10%, 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 0.50. LH pays more dividend than 86.14% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, LH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.1%

5.2 History

  • 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)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 (3/17/2026, 8:04:00 PM)

After market: 270.84 +0.22 (+0.08%)

270.62

+3.77 (+1.41%)

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 Cap22.30B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target309.93 (14.53%)
Short Float %3.91%
Short Ratio4.43
Dividend
Industry RankSector Rank
Dividend Yield 1.1%
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)1.26%
PT rev (3m)1.37%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)1.22%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 16.46
Fwd PE 14.81
P/S 1.6
P/FCF 18.49
P/OCF 13.59
P/B 2.59
P/tB N/A
EV/EBITDA 12.48
EPS(TTM)16.44
EY6.07%
EPS(NY)18.27
Fwd EY6.75%
FCF(TTM)14.64
FCFY5.41%
OCF(TTM)19.91
OCFY7.36%
SpS169.32
BVpS104.61
TBVpS-21.43
PEG (NY)1.48
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 3.14
F-Score8
WACC7.89%
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 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 2Y4.88%
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 16.46 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 11.11% in the next year.