LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LH - US5049221055 - Common Stock
269.14 USD
-2.17 (-0.8%)
269.14 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 102 industry peers in the Health Care Providers & Services industry. LH has an average financial health and profitability rating. LH is not valued too expensively and it also shows a decent growth rate.
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.
- LH had positive earnings in each of the past 5 years.
- LH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LH's Return On Assets of 4.68% is fine compared to the rest of the industry. LH outperforms 75.49% of its industry peers.
- LH has a better Return On Equity (9.83%) than 71.57% of its industry peers.
- LH has a better Return On Invested Capital (6.32%) than 63.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LH is below the industry average of 9.21%.
- 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's Profit Margin of 6.21% is amongst the best of the industry. LH outperforms 83.33% of its industry peers.
- 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 79.41% of the companies in the same industry.
- LH's Operating Margin has declined in the last couple of years.
- The Gross Margin of LH (28.45%) is comparable to the rest of the 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
- LH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LH has less shares outstanding
- The number of shares outstanding for LH has been reduced compared to 5 years ago.
- The debt/assets ratio for LH is higher compared to a year ago.
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.
- The Altman-Z score of LH (3.17) is better than 66.67% of its industry peers.
- The Debt to FCF ratio of LH is 4.09, which is a neutral value as it means it would take LH, 4.09 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.09, LH is doing good in the industry, outperforming 69.61% of the companies in the same industry.
- 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 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.75
WACC8.38%
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.
- Looking at the Current ratio, with a value of 1.55, LH is in line with its industry, outperforming 58.82% of the companies in the same 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 in line with its industry peers.
| 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.
- The Earnings Per Share has been growing slightly by 5.20% on average over the past years.
- Looking at the last year, LH shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
- The Revenue has been growing slightly by 2.40% on average over the past years.
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.
- LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.46%
EPS Next 2Y11.22%
EPS Next 3Y10.7%
EPS Next 5Y7.93%
Revenue Next Year7.74%
Revenue Next 2Y6.09%
Revenue Next 3Y5.66%
Revenue Next 5Y4.05%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.01 indicates a rather expensive valuation of LH.
- Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a rather cheap valuation: LH is cheaper than 80.39% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, LH is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 14.93, LH is valued correctly.
- Based on the Price/Forward Earnings ratio, LH is valued a bit cheaper than 78.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LH is valued a bit cheaper than 61.76% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LH is valued a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
- The 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)1.1
PEG (5Y)3.27
EPS Next 2Y11.22%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
- LH has a Yearly Dividend Yield of 1.07%.
- Compared to an average industry Dividend Yield of 0.59, LH pays a better dividend. On top of this LH pays more dividend than 86.27% of the companies listed in the same industry.
- With a Dividend Yield of 1.07, LH pays less dividend than the S&P500 average, which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
- The dividend of LH decreased 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.
- 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%
269.14
-2.17 (-0.8%)
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-0.44%
Ins Owners0.31%
Ins Owner Change-2.41%
Market Cap22.31B
Revenue(TTM)13.77B
Net Income(TTM)855.20M
Analysts82.76
Price Target305.75 (13.6%)
Short Float %3.77%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend2.91
Dividend Growth(5Y)96.38%
DP28.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-27 2026-02-27 (0.72)
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)-0.11%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 14.93 | ||
| P/S | 1.62 | ||
| P/FCF | 16.16 | ||
| P/OCF | 12.37 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.44 |
EPS(TTM)15.82
EY5.88%
EPS(NY)18.02
Fwd EY6.7%
FCF(TTM)16.66
FCFY6.19%
OCF(TTM)21.76
OCFY8.08%
SpS166.05
BVpS104.91
TBVpS-18.78
PEG (NY)1.1
PEG (5Y)3.27
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 | 3.17 |
F-Score9
WACC8.38%
ROIC/WACC0.75
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 Y15.46%
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 Year7.74%
Revenue Next 2Y6.09%
Revenue Next 3Y5.66%
Revenue Next 5Y4.05%
EBIT growth 1Y20.09%
EBIT growth 3Y-28.19%
EBIT growth 5Y-5.19%
EBIT Next Year33.67%
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 17.01 and the Price/Book (PB) ratio is 2.57.
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 15.46% in the next year.