(LH) Laboratory of America - Overview
Sector: Healthcare | Industry: Diagnostics & Research | Exchange: NYSE (USA) | Market Cap: 21.140m USD | Total Return: 5.5% in 12m
Avg Turnover: 166M
EPS Trend: 43.7%
Qual. Beats: 5
Rev. Trend: 89.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Garp
Labcorp Holdings Inc. (LH) operates as a leading provider of comprehensive laboratory services through two primary segments: Diagnostics Laboratories and Biopharma Laboratory Services. The company manages a vast portfolio of clinical testing ranging from routine blood chemistry and urinalysis to advanced genomic and esoteric testing. Labcorp utilizes digital pathology and generative AI tools to integrate its services into the workflows of healthcare providers, pharmaceutical companies, and managed care organizations.
The clinical laboratory sector is characterized by high barriers to entry due to the extensive logistics networks and specialized equipment required to process millions of tests annually. Labcorps business model relies on a hub-and-spoke distribution system, which captures economies of scale by centralizing complex testing while maintaining local patient service centers for specimen collection. This scale is critical in a reimbursement environment where large-scale diagnostic providers often secure preferred status with national insurance payers.
Investors should examine detailed performance metrics on ValueRay to better understand the companys long-term valuation. Headquartered in North Carolina, the company continues to expand its reach through strategic partnerships, such as its collaboration with the Children’s Hospital of Philadelphia, to advance pediatric diagnostics and specialized medicine.
- Aging demographics increase routine and esoteric diagnostic testing volume demand
- Biopharma R&D spending levels dictate drug development service revenue growth
- Medicare reimbursement rate adjustments under PAMA impact domestic testing margins
- Strategic health system acquisitions drive market share and geographic expansion
- Labor costs and clinical staff shortages pressure operational profit margins
| Net Income: 941.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.71 > 1.0 |
| NWC/Revenue: 13.56% < 20% (prev 13.09%; Δ 0.47% < -1%) |
| CFO/TA 0.10 > 3% & CFO 1.81b > Net Income 941.5m |
| Net Debt (7.17b) to EBITDA (2.08b): 3.45 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (82.9m) vs 12m ago -1.66% < -2% |
| Gross Margin: 27.79% > 18% (prev 0.28%; Δ 2.75k% > 0.5%) |
| Asset Turnover: 77.10% > 50% (prev 74.86%; Δ 2.24% > 0%) |
| Interest Coverage Ratio: 6.22 > 6 (EBITDA TTM 2.08b / Interest Expense TTM 223.2m) |
| A: 0.10 (Total Current Assets 4.56b - Total Current Liabilities 2.64b) / Total Assets 19.1b |
| B: 0.46 (Retained Earnings 8.78b / Total Assets 19.1b) |
| C: 0.08 (EBIT TTM 1.39b / Avg Total Assets 18.3b) |
| D: 0.84 (Book Value of Equity 8.73b / Total Liabilities 10.3b) |
| Altman-Z'' = 3.55 = A |
| DSRI: 0.94 (Receivables 2.29b/2.27b, Revenue 14.1b/13.2b) |
| GMI: 1.00 (GM 27.79% / 27.89%) |
| AQI: 0.99 (AQ_t 0.60 / AQ_t-1 0.61) |
| SGI: 1.07 (Revenue 14.1b / 13.2b) |
| TATA: -0.05 (NI 941.5m - CFO 1.81b) / TA 19.1b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 258.45 with a total of 636,332 shares traded.
Over the past week, the price has changed by +1.13%,
over one month by -1.89%,
over three months by -9.92% and
over the past year by +5.46%.
Laboratory of America has received a consensus analysts rating of 4.45. Therefore, it is recommended to buy LH.
- StrongBuy: 13
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 310.1 | 20% |
P/E Trailing = 22.8546
P/E Forward = 14.3062
P/S = 1.4946
P/B = 2.4026
P/EG = 1.0845
Revenue TTM = 14.1b USD
EBIT TTM = 1.39b USD
EBITDA TTM = 2.08b USD
Long Term Debt = 5.83b USD (from longTermDebt, last quarter)
Short Term Debt = 688.2m USD (from shortTermDebt, last quarter)
Debt = 8.15b USD (from shortLongTermDebtTotal, last quarter) + Leases 906.5m
Net Debt = 7.17b USD (calculated: Debt 8.15b - CCE 981.1m)
Enterprise Value = 28.3b USD (21.1b + Debt 8.15b - CCE 981.1m)
Interest Coverage Ratio = 6.22 (Ebit TTM 1.39b / Interest Expense TTM 223.2m)
EV/FCF = 20.45x (Enterprise Value 28.3b / FCF TTM 1.38b)
FCF Yield = 4.89% (FCF TTM 1.38b / Enterprise Value 28.3b)
FCF Margin = 9.78% (FCF TTM 1.38b / Revenue TTM 14.1b)
Net Margin = 6.66% (Net Income TTM 941.5m / Revenue TTM 14.1b)
Gross Margin = 27.79% ((Revenue TTM 14.1b - Cost of Revenue TTM 10.2b) / Revenue TTM)
Gross Margin QoQ = 26.52% (prev 26.18%)
Tobins Q-Ratio = 1.48 (Enterprise Value 28.3b / Total Assets 19.1b)
Interest Expense / Debt = 2.74% (Interest Expense 223.2m / Debt 8.15b)
Taxrate = 13.04% (41.7m / 319.7m)
NOPAT = 1.21b (EBIT 1.39b * (1 - 13.04%))
Current Ratio = 1.73 (Total Current Assets 4.56b / Total Current Liabilities 2.64b)
Debt / Equity = 0.93 (Debt 8.15b / totalStockholderEquity, last quarter 8.73b)
Debt / EBITDA = 3.45 (Net Debt 7.17b / EBITDA 2.08b)
Debt / FCF = 5.18 (Net Debt 7.17b / FCF TTM 1.38b)
Total Stockholder Equity = 8.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.13% (Net Income 941.5m / Total Assets 19.1b)
RoE = 10.91% (Net Income TTM 941.5m / Total Stockholder Equity 8.63b)
RoCE = 9.59% (EBIT 1.39b / Capital Employed (Equity 8.63b + L.T.Debt 5.83b))
RoIC = 7.04% (NOPAT 1.21b / Invested Capital 17.1b)
WACC = 5.79% (E(21.1b)/V(29.3b) * Re(7.11%) + D(8.15b)/V(29.3b) * Rd(2.74%) * (1-Tc(0.13)))
Discount Rate = 7.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -1.05%
[DCF] Terminal Value 77.97% ; FCFF base≈1.29b ; Y1≈1.48b ; Y5≈2.18b
[DCF] Fair Price = 312.4 (EV 32.8b - Net Debt 7.17b = Equity 25.6b / Shares 82.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 43.67 | EPS CAGR: 3.06% | SUE: 2.06 | # QB: 5
Revenue Correlation: 89.26 | Revenue CAGR: 5.08% | SUE: 0.70 | # QB: 0
EPS current Quarter (2026-06-30): EPS=4.78 | Chg30d=+0.45% | Revisions=+25% | Analysts=14
EPS next Quarter (2026-09-30): EPS=4.59 | Chg30d=-0.26% | Revisions=-6% | Analysts=14
EPS current Year (2026-12-31): EPS=18.00 | Chg30d=+1.22% | Revisions=+82% | GrowthEPS=+9.5% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=19.44 | Chg30d=+0.82% | Revisions=+55% | GrowthEPS=+8.0% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: +82%