LABCORP HOLDINGS INC (LH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LH • US5049221055
271.52 USD
+1.71 (+0.63%)
At close: Jan 30, 2026
271.52 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, LH scores 5 out of 10 in our fundamental rating. LH was compared to 103 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
- In the past year LH was profitable.
- In the past year LH had a positive cash flow from operations.
- 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.
1.2 Ratios
- LH's Return On Assets of 4.68% is fine compared to the rest of the industry. LH outperforms 75.73% of its industry peers.
- 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.
- The Return On Invested Capital of LH (6.32%) is better than 65.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LH is below the industry average of 9.16%.
- The last Return On Invested Capital (6.32%) for LH is above the 3 year average (6.31%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 6.21%, LH belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
- 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.
- LH's Operating Margin has declined in the last couple of years.
- LH has a Gross Margin (28.45%) which is in line with 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LH is destroying value.
- The number of shares outstanding for LH has been reduced compared to 1 year ago.
- LH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LH has a worse debt to assets ratio.
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.
- LH has a Altman-Z score of 3.17. This is in the better half of the industry: LH outperforms 66.02% 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.
- LH has a Debt to FCF ratio of 4.09. This is in the better half of the industry: LH outperforms 69.90% of its industry peers.
- LH has a Debt/Equity ratio of 0.59. This is a neutral value indicating LH is somewhat dependend on debt financing.
- LH has a Debt to Equity ratio of 0.59. This is comparable 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
WACC8.26%
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 58.25% 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.
- The Quick ratio of LH (1.35) 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
- 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.
- The Revenue has grown by 8.28% in the past year. This is quite good.
- 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.
- The Revenue is expected to grow by 4.05% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 17.16, LH is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of LH indicates a rather cheap valuation: LH is cheaper than 81.55% of the companies listed in the same industry.
- LH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.07, LH is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LH indicates a somewhat cheap valuation: LH is cheaper than 77.67% of the companies listed in the same industry.
- LH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 15.07 |
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.
- LH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LH is cheaper than 72.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 14.45 |
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)1.12
PEG (5Y)3.3
EPS Next 2Y11.22%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.07%, 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 0.47. LH pays more dividend than 86.41% of the companies in the same industry.
- With a Dividend Yield of 1.07, LH pays less dividend than the S&P500 average, which is at 1.83.
| 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.
- 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
- 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 3Y10.52%
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 17.16 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 15.38% in the next year.