LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
262 USD
+8.02 (+3.16%)
261.72 USD
-0.28 (-0.11%)
Overall LH gets a fundamental rating of 5 out of 10. We evaluated LH against 100 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year LH was profitable.
- LH had a positive operating cash flow in the past year.
- In the past 5 years LH has always been profitable.
- In the past 5 years LH always reported a positive cash flow from operatings.
1.2 Ratios
- LH has a Return On Assets of 4.68%. This is in the better half of the industry: LH outperforms 75.00% of its industry peers.
- LH has a Return On Equity of 9.83%. This is in the better half of the industry: LH outperforms 71.00% of its industry peers.
- With a decent Return On Invested Capital value of 6.32%, LH is doing good in the industry, outperforming 64.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- With an excellent Profit Margin value of 6.21%, LH belongs to the best of the industry, outperforming 83.00% of the companies in the same industry.
- LH's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 9.92%, LH is doing good in the industry, outperforming 79.00% of the companies in the same industry.
- LH's Operating Margin has declined in the last couple of years.
- LH's Gross Margin of 28.45% is in line compared to the rest of the industry. LH outperforms 57.00% of its industry peers.
- 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
- LH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- LH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, LH has less shares outstanding
- The debt/assets ratio for LH is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.08 indicates that LH is not in any danger for bankruptcy at the moment.
- LH's Altman-Z score of 3.08 is fine compared to the rest of the industry. LH outperforms 64.00% 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.
- The Debt to FCF ratio of LH (4.09) is better than 69.00% of its industry peers.
- A Debt/Equity ratio of 0.59 indicates that LH is somewhat dependend on debt financing.
- LH's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. LH outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.76
WACC8.34%
2.3 Liquidity
- LH has a Current Ratio of 1.55. 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 (1.55) which is comparable to the rest of the industry.
- 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
- LH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.71%, which is quite good.
- 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.
- The Revenue has grown by 8.28% in the past year. This is quite good.
- 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
- Based on estimates for the next years, LH will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
- The Revenue is expected to grow by 4.05% on average over the next years.
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 16.56 indicates a correct valuation of LH.
- LH's Price/Earnings ratio is rather cheap when compared to the industry. LH is cheaper than 81.00% of the companies in the same industry.
- LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
- Based on the Price/Forward Earnings ratio of 14.54, the valuation of LH can be described as correct.
- LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 79.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than the industry average as 63.00% of the companies are valued more expensively.
- 74.00% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.73 | ||
| EV/EBITDA | 13.69 |
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)1.07
PEG (5Y)3.19
EPS Next 2Y11.22%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
- LH has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
- 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 1.91, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
- The dividend of LH is nicely growing with an annual growth rate of 96.38%!
- 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
- 28.24% of the earnings are spent on dividend by LH. This is a low number and sustainable payout ratio.
- The dividend of LH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.24%
EPS Next 2Y11.22%
EPS Next 3Y10.7%
262
+8.02 (+3.16%)
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 Cap21.72B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (16.7%)
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 | 16.56 | ||
| Fwd PE | 14.54 | ||
| P/S | 1.58 | ||
| P/FCF | 15.73 | ||
| P/OCF | 12.04 | ||
| P/B | 2.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)15.82
EY6.04%
EPS(NY)18.02
Fwd EY6.88%
FCF(TTM)16.66
FCFY6.36%
OCF(TTM)21.76
OCFY8.3%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.07
PEG (5Y)3.19
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 | 3.08 |
F-Score9
WACC8.34%
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 6 / 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 16.56 and the Price/Book (PB) ratio is 2.5.
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.