NYSE:LH

Stock Analysis Report

Laboratory Corporation of America Holdings

Executive Summary

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Laboratory Corporation of America Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

LH

-0.08%

US Healthcare

1.3%

US Market


1 Year Return

-2.4%

LH

-10.6%

US Healthcare

5.9%

US Market

Return vs Industry: LH exceeded the US Healthcare industry which returned -10.6% over the past year.

Return vs Market: LH underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

LHIndustryMarket
7 Day-0.9%-0.08%1.3%
30 Day-4.0%-4.1%-1.9%
90 Day-5.5%-9.4%-1.8%
1 Year-2.4%-2.4%-9.2%-10.6%8.3%5.9%
3 Year21.7%21.7%28.9%23.7%45.6%36.2%
5 Year67.2%67.2%58.9%49.4%66.1%47.9%

Price Volatility Vs. Market

How volatile is Laboratory Corporation of America Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Laboratory Corporation of America Holdings undervalued compared to its fair value and its price relative to the market?

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LH ($165.45) is trading below our estimate of fair value ($262.02)

Significantly Undervalued: LH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LH is good value based on its PE Ratio (19.3x) compared to the Healthcare industry average (19.9x).

PE vs Market: LH is poor value based on its PE Ratio (19.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: LH is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: LH is good value based on its PB Ratio (2.3x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is Laboratory Corporation of America Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LH's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: LH's earnings (10% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: LH's earnings are forecast to grow, but not significantly.

Revenue vs Market: LH's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LH's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LH's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Laboratory Corporation of America Holdings performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LH's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: LH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LH had negative earnings growth (-32.7%) over the past year, making it difficult to compare to the Healthcare industry average (5.3%).


Return on Equity

High ROE: LH's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: LH has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: LH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Laboratory Corporation of America Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LH's short term assets ($2.8B) exceeds its short term liabilities ($2.5B)

Long Term Liabilities: LH's short term assets (2.8B) do not cover its long term liabilities (8.1B)


Debt to Equity History and Analysis

Debt Level: LH's debt to equity ratio (92.6%) is considered high

Reducing Debt: LH's debt to equity ratio has reduced from 111.5% to 92.6% over the past 5 years.

Debt Coverage: LH's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: LH's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: LH has a low level of unsold assets or inventory.

Debt Coverage by Assets: LH's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Laboratory Corporation of America Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate LH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if LH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Laboratory Corporation of America Holdings's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Dave King (63yo)

12.8yrs

Tenure

US$12,264,236

Compensation

Mr. David P. King, also known as Dave, J.D. has been Chief Executive Officer and President at Laboratory Corporation of America Holdings since January 01, 2007. Mr. King has spent 17 years as a practicing  ...


CEO Compensation Analysis

Compensation vs. Market: Dave's total compensation ($USD12.26M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: LH's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: LH's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: LH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,002,17204 Sep 19
Lance Berberian
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & Senior VP
Shares5,902
Max PriceUS$169.80
SellUS$1,673,97011 Jun 19
Glenn Eisenberg
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares10,000
Max PriceUS$168.41
SellUS$656,00006 May 19
Lisa Uthgenannt
EntityIndividual
Role
Head of Human Resources
Chief HR Officer & Senior VP
Shares4,000
Max PriceUS$164.00

Ownership Breakdown


Management Team

  • Lance Berberian (56yo)

    Chief Information Officer & Senior VP

    • Tenure: 5.7yrs
    • Compensation: US$2.01m
  • John Ratliff (59yo)

    Chief Executive Officer of Covance Drug Development

    • Tenure: 3yrs
    • Compensation: US$7.49m
  • Glenn Eisenberg (58yo)

    CFO & Executive VP

    • Tenure: 5.3yrs
    • Compensation: US$3.43m
  • Dave King (63yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$12.26m
  • Michelle Abelson

    Laboratory Director of Operations

    • Tenure: 0yrs
  • Peter Wilkinson (48yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.5yrs
  • Lisa Uthgenannt (58yo)

    Chief HR Officer & Senior VP

    • Tenure: 4.6yrs
    • Compensation: US$1.38m
  • Marcia Eisenberg

    Chief Scientific Officer & Senior VP

    • Tenure: 0yrs
  • Sandy van der Vaart (59yo)

    Senior VP

    • Tenure: 0.7yrs
  • Clarissa Willett

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Peter Neupert (63yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$296.14k
  • Kerrii Anderson (62yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$306.14k
  • Jean-Luc Bélingard (71yo)

    Independent Director

    • Tenure: 24.5yrs
    • Compensation: US$749.98k
  • Garheng Kong (44yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$281.14k
  • Richelle Parham (51yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$281.14k
  • Dave King (63yo)

    Chairman

    • Tenure: 12.8yrs
    • Compensation: US$12.26m
  • R. Williams (70yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$296.14k
  • Adam Schechter (54yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$301.14k
  • D. Gilliland (64yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$281.14k

Company Information

Laboratory Corporation of America Holdings's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laboratory Corporation of America Holdings
  • Ticker: LH
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$16.164b
  • Shares outstanding: 97.70m
  • Website: https://www.labcorp.com

Number of Employees


Location

  • Laboratory Corporation of America Holdings
  • 358 South Main Street
  • Burlington
  • North Carolina
  • 27215
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LHNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1988
LABDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1988
LH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1988
0JSYLSE (London Stock Exchange)YesCommon StockGBUSDJul 1988

Biography

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates in two segments, LabCorp Diagnostics (LCD) and Covance Drug Development. It offers v ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:36
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.