LABCORP HOLDINGS INC (LH) Fundamental Analysis & Valuation

NYSE:LH • US5049221055

Current stock price

260.93 USD
-12.33 (-4.51%)
At close:
260.93 USD
0 (0%)
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

  • In the past year LH was profitable.
  • LH had a positive operating cash flow in the past year.
  • Each year in the past 5 years LH has been profitable.
  • LH had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Assets (4.77%) than 75.00% of its industry peers.
  • LH has a better Return On Equity (10.17%) than 67.00% of its industry peers.
  • LH's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. LH outperforms 72.00% of its industry peers.
  • LH had an Average Return On Invested Capital over the past 3 years of 6.71%. This is below the industry average of 8.74%.
  • The 3 year average ROIC (6.71%) for LH is below the current ROIC(7.65%), indicating increased profibility in the last year.
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 82.00% of its industry peers.
  • In the last couple of years the Profit Margin of LH has declined.
  • LH's Operating Margin of 10.87% is fine compared to the rest of the industry. LH outperforms 80.00% of its industry peers.
  • LH's Operating Margin has declined in the last couple of years.
  • LH has a Gross Margin (28.76%) which is in line with its industry peers.
  • 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

  • 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
  • LH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, LH has an improved debt to assets ratio.
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 3.15. This indicates that LH is financially healthy and has little risk of bankruptcy at the moment.
  • LH has a better Altman-Z score (3.15) than 69.00% 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.
  • LH's Debt to FCF ratio of 4.69 is fine compared to the rest of the industry. LH outperforms 63.00% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that LH is somewhat dependend on debt financing.
  • LH has a Debt to Equity ratio (0.60) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.69
Altman-Z 3.15
ROIC/WACC0.94
WACC8.12%
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.
  • 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 of 1.23. This is comparable to the rest of the industry: LH outperforms 52.00% of 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

  • 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.
  • LH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.04% yearly.
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 4.69% on average per year.
EPS Next Y11.11%
EPS Next 2Y9.91%
EPS Next 3Y9.45%
EPS Next 5Y6.59%
Revenue Next Year4.86%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.69%

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.
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

  • A Price/Earnings ratio of 15.87 indicates a correct valuation of LH.
  • LH's Price/Earnings ratio is a bit cheaper when compared to the industry. LH is cheaper than 76.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.78. LH is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of LH.
  • 78.00% of the companies in the same industry are more expensive than LH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.54. LH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.87
Fwd PE 14.28
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

  • 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.
  • 62.00% of the companies in the same industry are more expensive than LH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.83
EV/EBITDA 12.58
LH Per share dataLH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • LH's 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)1.43
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

  • LH has a Yearly Dividend Yield of 1.09%.
  • LH's Dividend Yield is rather good when compared to the industry average which is at 0.50. LH pays more dividend than 86.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, LH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

  • LH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
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 (4/10/2026, 8:04:00 PM)

After market: 260.93 0 (0%)

260.93

-12.33 (-4.51%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-17
Earnings (Next)04-30
Inst Owners99.89%
Inst Owner Change0%
Ins Owners0.34%
Ins Owner Change7.13%
Market Cap21.50B
Revenue(TTM)13.95B
Net Income(TTM)876.50M
Analysts82.76
Price Target311.79 (19.49%)
Short Float %3.65%
Short Ratio4.42
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend2.91
Dividend Growth(5Y)N/A
DP27.46%
Div Incr Years0
Div Non Decr Years0
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)0.6%
PT rev (3m)1.98%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 15.87
Fwd PE 14.28
P/S 1.54
P/FCF 17.83
P/OCF 13.11
P/B 2.49
P/tB N/A
EV/EBITDA 12.58
EPS(TTM)16.44
EY6.3%
EPS(NY)18.27
Fwd EY7%
FCF(TTM)14.64
FCFY5.61%
OCF(TTM)19.91
OCFY7.63%
SpS169.32
BVpS104.61
TBVpS-21.43
PEG (NY)1.43
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 3.15
F-Score8
WACC8.12%
ROIC/WACC0.94
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 2Y4.82%
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.


Can you provide the valuation status for LABCORP HOLDINGS INC?

ChartMill assigns a valuation rating of 5 / 10 to LABCORP HOLDINGS INC (LH). This can be considered as Fairly Valued.


How profitable is LABCORP HOLDINGS INC (LH) stock?

LABCORP HOLDINGS INC (LH) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for LH stock?

The Price/Earnings (PE) ratio for LABCORP HOLDINGS INC (LH) is 15.87 and the Price/Book (PB) ratio is 2.49.


How financially healthy is LABCORP HOLDINGS INC?

The financial health rating of LABCORP HOLDINGS INC (LH) is 6 / 10.