LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LH • US5049221055
270.19 USD
+0.38 (+0.14%)
Last: Jan 30, 2026, 11:21 AM
We assign a fundamental rating of 5 out of 10 to LH. LH was compared to 103 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.
- Each year in the past 5 years LH has been profitable.
- Each year in the past 5 years LH had a positive operating cash flow.
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 75.73% of the companies in the same industry.
- LH's Return On Equity of 9.83% is fine compared to the rest of the industry. LH outperforms 70.87% of its industry peers.
- LH has a better Return On Invested Capital (6.32%) than 65.05% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LH is below the industry average of 9.16%.
- 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 82.52% of its industry peers.
- In the last couple of years the Profit Margin of LH has declined.
- LH has a Operating Margin of 9.92%. This is in the better half of the industry: LH outperforms 79.61% of its industry peers.
- In the last couple of years the Operating Margin of LH has declined.
- LH has a Gross Margin of 28.45%. This is comparable to the rest of the industry: LH outperforms 58.25% 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
- 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
- The number of shares outstanding for LH has been reduced compared to 5 years ago.
- Compared to 1 year ago, LH has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.17 indicates that LH is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.17, LH is doing good in the industry, outperforming 66.02% of the companies in the same industry.
- 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 69.90% of the companies in the same industry.
- LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating 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 58.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.76
WACC8.27%
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 58.25% of its industry peers.
- A Quick Ratio of 1.35 indicates that LH should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.35, LH perfoms like the industry average, outperforming 55.34% of the companies in the same 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
- 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.
- LH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.38%
EPS Next 2Y11.22%
EPS Next 3Y10.52%
EPS Next 5Y7.93%
Revenue Next Year7.75%
Revenue Next 2Y6.1%
Revenue Next 3Y5.71%
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 17.08 indicates a rather expensive valuation of LH.
- 80.58% of the companies in the same industry are more expensive than LH, based on the Price/Earnings ratio.
- LH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of LH.
- LH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 77.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, LH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 61.16% of the companies listed 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 72.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.22 | ||
| EV/EBITDA | 14.38 |
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)1.11
PEG (5Y)3.29
EPS Next 2Y11.22%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
- LH has a Yearly Dividend Yield of 1.07%.
- LH's Dividend Yield is rather good when compared to the industry average which is at 0.46. LH pays more dividend than 86.41% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, LH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
- 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.
- 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 3Y10.52%
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 17.08 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 15.38% in the next year.