Laboratory Corporation of America Holdings
Market Cap
US$21.8b
Last Updated
2021/01/15 23:25 UTC
Data Sources
Company Financials +
Executive Summary
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 6.1% per year for the next 3 years
Snowflake Analysis
Good value with adequate 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
Stable Share Price: LH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LH's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.8%
LH
-2.1%
US Healthcare
-0.9%
US Market
1 Year Return
26.4%
LH
14.2%
US Healthcare
19.6%
US Market
Return vs Industry: LH exceeded the US Healthcare industry which returned 13.5% over the past year.
Return vs Market: LH exceeded the US Market which returned 21% over the past year.
Shareholder returns
| LH | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | -2.1% | -0.9% |
| 30 Day | 10.8% | 5.9% | 3.0% |
| 90 Day | 12.4% | 12.4% | 11.5% |
| 1 Year | 26.4%26.4% | 15.6%14.2% | 22.3%19.6% |
| 3 Year | 28.3%28.3% | 32.6%27.0% | 45.3%35.7% |
| 5 Year | 98.0%98.0% | 92.2%78.4% | 124.8%99.9% |
Long-Term 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
2 months ago | Simply Wall St
What Do The Returns On Capital At Laboratory Corporation of America Holdings (NYSE:LH) Tell Us?3 months ago | Simply Wall St
How Much Are Laboratory Corporation of America Holdings (NYSE:LH) Insiders Taking Off The Table?3 months ago | Simply Wall St
An Intrinsic Calculation For Laboratory Corporation of America Holdings (NYSE:LH) Suggests It's 39% UndervaluedValuation
Is Laboratory Corporation of America Holdings undervalued compared to its fair value and its price relative to the market?
22.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LH ($223.71) is trading below our estimate of fair value ($290.16)
Significantly Below Fair Value: LH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LH is good value based on its PE Ratio (25.8x) compared to the US Healthcare industry average (29.8x).
PE vs Market: LH is poor value based on its PE Ratio (25.8x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: LH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: LH is good value based on its PB Ratio (2.6x) compared to the US Healthcare industry average (3.6x).
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 14 analysts?
-6.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LH's earnings are forecast to decline over the next 3 years (-6.1% per year).
Earnings vs Market: LH's earnings are forecast to decline over the next 3 years (-6.1% per year).
High Growth Earnings: LH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LH's revenue (0.2% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: LH's revenue (0.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LH's Return on Equity is forecast to be low in 3 years time (15.4%).
Next Steps
Past Performance
How has Laboratory Corporation of America Holdings performed over the past 5 years?
4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LH has a large one-off loss of $515.8M impacting its September 30 2020 financial results.
Growing Profit Margin: LH's current net profit margins (6.8%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: LH's earnings have grown by 4.1% per year over the past 5 years.
Accelerating Growth: LH's earnings growth over the past year (11.9%) exceeds its 5-year average (4.1% per year).
Earnings vs Industry: LH earnings growth over the past year (11.9%) underperformed the Healthcare industry 21.4%.
Return on Equity
High ROE: LH's Return on Equity (10.2%) is considered low.
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 ($4.1B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: LH's short term assets ($4.1B) do not cover its long term liabilities ($7.5B).
Debt to Equity History and Analysis
Debt Level: LH's debt to equity ratio (70.2%) is considered high.
Reducing Debt: LH's debt to equity ratio has reduced from 134.2% to 70.2% over the past 5 years.
Debt Coverage: LH's debt is well covered by operating cash flow (33.3%).
Interest Coverage: LH's interest payments on its debt are well covered by EBIT (9.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Laboratory Corporation of America Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Adam Schechter (55 yo)
1.17yrs
Tenure
US$5,944,270
Compensation
Mr. Adam H. Schechter serves as President & CEO at Laboratory Corporation of America Holdings since November 01, 2019 and serves as its Chairman since May 13, 2020. He served as a Special Advisor to the Ch...
CEO Compensation Analysis
Compensation vs Market: Adam's total compensation ($USD5.94M) is below average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Adam's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$5.94m | 0.0091% $ 2.0m | |
| CFO & Executive VP | 6.58yrs | US$8.82m | 0.032% $ 7.0m | |
| Executive VP and Chief Information & Technology Officer | 0.92yr | US$2.70m | 0.011% $ 2.4m | |
| Executive VP | 3.33yrs | US$6.05m | 0.0043% $ 943.5k | |
| Executive VP and President of Diagnostics Laboratory Operations & Global Supply Chain | 4.17yrs | US$4.85m | 0.0040% $ 882.5k | |
| Laboratory Director of Operations | no data | no data | no data | |
| Senior VP & Chief Accounting Officer | 1.75yrs | no data | 0.00030% $ 65.4k | |
| Chief Scientific Officer & Senior VP | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP | 1.92yrs | no data | 0.0042% $ 904.3k | |
| Executive VP & Chief Marketing Officer | 0.83yr | no data | no data | |
| Executive VP & Chief Human Resources Officer | 1.25yrs | no data | 0.00060% $ 130.7k |
1.8yrs
Average Tenure
57yo
Average Age
Experienced Management: LH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$5.94m | 0.0091% $ 2.0m | |
| Lead Independent Director | 1.5yrs | US$327.37k | 0.010% $ 2.2m | |
| Independent Director | 14.67yrs | US$314.87k | 0.021% $ 4.6m | |
| Independent Director | 25.75yrs | US$289.87k | 0.015% $ 3.3m | |
| Independent Director | 7.08yrs | US$309.87k | 0.0087% $ 1.9m | |
| Independent Director | 4.92yrs | US$289.87k | 0.0052% $ 1.1m | |
| Independent Director | 13.67yrs | US$304.87k | 0.0052% $ 1.1m | |
| Independent Director | 6.75yrs | US$289.87k | 0.0059% $ 1.3m | |
| Independent Director | 1.08yrs | US$39.13k | 0.00018% $ 39.2k |
6.8yrs
Average Tenure
63yo
Average Age
Experienced Board: LH's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$21.789b
- Shares outstanding: 97.40m
- 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 |
| L1CA34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
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 | 2021/01/15 23:25 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.