Laboratory Corporation of America Holdings
Market Cap
US$16.2b
Last Updated
2019/10/14 23:36 UTC
Data Sources
Company Financials +
Executive Summary
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide.
Snowflake
Fundamentals
Fair value with mediocre balance sheet.
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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
| LH | Industry | Market | |
|---|---|---|---|
| 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 Year | 21.7%21.7% | 28.9%23.7% | 45.6%36.2% |
| 5 Year | 67.2%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
1 day ago | Simply Wall St
Is It Too Late To Consider Buying Laboratory Corporation of America Holdings (NYSE:LH)?2 weeks ago | Simply Wall St
Is There More To Laboratory Corporation of America Holdings (NYSE:LH) Than Its 9.5% Returns On Capital?4 weeks ago | Simply Wall St
Do You Know What Laboratory Corporation of America Holdings's (NYSE:LH) P/E Ratio Means?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).
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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%).
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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.
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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
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
| Entity | Individual |
| Role | Chief Information Officer Chief Information Officer & Senior VP |
| Shares | 5,902 |
| Max Price | US$169.80 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Executive VP |
| Shares | 10,000 |
| Max Price | US$168.41 |
| Entity | Individual |
| Role | Head of Human Resources Chief HR Officer & Senior VP |
| Shares | 4,000 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LH | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1988 |
| LAB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1988 |
| LH * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jul 1988 |
| 0JSY | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 23:36 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.