Snowflake Score | |
---|---|
Valuation | 5/6 |
Future Growth | 0/6 |
Past Performance | 2/6 |
Financial Health | 5/6 |
Dividends | 1/6 |
LH Stock Overview
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide.
Laboratory Corporation of America Holdings Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | US$242.56 |
52 Week High | US$317.17 |
52 Week Low | US$212.40 |
Beta | 1.04 |
1 Month Change | -5.94% |
3 Month Change | -12.25% |
1 Year Change | -9.24% |
3 Year Change | 40.29% |
5 Year Change | 57.36% |
Change since IPO | 646.34% |
Recent News & Updates
Laboratory Corp: 15% Reward Asymmetry Under-Reflected, Seeking Exit At $280 Per Share
Laboratory Corporation of America's defensible cash production separates it from peers in the current macro-climate. Shares have traded down in recent times, and we feel the company's bottom line fundamentals are under-appreciated by the market. We are seeking a return objective of 15% or roughly $37 per share with a potential exit at $279–$289. Here, we cover the quantamental factors in LH's investment debate.
Returns On Capital Are Showing Encouraging Signs At Laboratory Corporation of America Holdings (NYSE:LH)
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Shareholder Returns
LH | US Healthcare | US Market | |
---|---|---|---|
7D | 7.2% | 7.8% | 6.6% |
1Y | -9.2% | 2.5% | -18.4% |
Return vs Industry: LH underperformed the US Healthcare industry which returned 2.4% over the past year.
Return vs Market: LH exceeded the US Market which returned -18.4% over the past year.
Price Volatility
LH volatility | |
---|---|
LH Average Weekly Movement | 4.7% |
Healthcare Industry Average Movement | 9.5% |
Market Average Movement | 8.1% |
10% most volatile stocks in US Market | 16.6% |
10% least volatile stocks in US Market | 3.2% |
Stable Share Price: LH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LH's weekly volatility (5%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
1971 | 71,725 | Adam Schechter | https://www.labcorp.com |
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates in two segments, Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). It offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C and vitamin D products, prostate-specific antigens, tests for sexually transmitted diseases, hepatitis C tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests.
Laboratory Corporation of America Holdings Fundamentals Summary
LH fundamental statistics | |
---|---|
Market Cap | US$22.49b |
Earnings (TTM) | US$2.10b |
Revenue (TTM) | US$15.86b |
10.7x
P/E Ratio1.4x
P/S RatioIs LH overvalued?
See Fair Value and valuation analysisEarnings & Revenue
LH income statement (TTM) | |
---|---|
Revenue | US$15.86b |
Cost of Revenue | US$10.60b |
Gross Profit | US$5.26b |
Other Expenses | US$3.16b |
Earnings | US$2.10b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 22.65 |
Gross Margin | 33.16% |
Net Profit Margin | 13.24% |
Debt/Equity Ratio | 50.4% |
How did LH perform over the long term?
See historical performance and comparisonDividends
1.2%
Current Dividend Yieldn/a
Payout RatioValuation
Is LH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for LH?
Other financial metrics that can be useful for relative valuation.
What is LH's n/a Ratio? | |
---|---|
n/a Ratio | 0x |
n/a | n/a |
Market Cap | US$22.49b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 1.7x |
Enterprise Value/EBITDA | 7.5x |
PEG Ratio | -6.5x |
Price to Earnings Ratio vs Peers
How does LH's PE Ratio compare to its peers?
LH PE Ratio vs Peers |
---|
Company | PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 16.8x |
Price-To-Earnings vs Peers: LH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (16.8x).
Price to Earnings Ratio vs Industry
How does LH's PE Ratio compare vs other companies in the US Healthcare Industry?
Price-To-Earnings vs Industry: LH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the US Healthcare industry average (18.7x)
Price to Earnings Ratio vs Fair Ratio
What is LH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
Fair Ratio | |
---|---|
Current PE Ratio | 10.7x |
Fair PE Ratio | 23.2x |
Price-To-Earnings vs Fair Ratio: LH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).
Share Price vs Fair Value
What is the Fair Price of LH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: LH ($242.56) is trading below our estimate of fair value ($557.64)
Significantly Below Fair Value: LH is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: LH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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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 13 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-1.6%
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 (-1.6% per year).
Earnings vs Market: LH's earnings are forecast to decline over the next 3 years (-1.6% per year).
High Growth Earnings: LH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LH's revenue (3% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: LH's revenue (3% 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 (14.7%).
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Past Performance
How has Laboratory Corporation of America Holdings performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
24.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LH has high quality earnings.
Growing Profit Margin: LH's current net profit margins (13.2%) are lower than last year (17.3%).
Past Earnings Growth Analysis
Earnings Trend: LH's earnings have grown significantly by 24.4% 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 (-20.6%) over the past year, making it difficult to compare to the Healthcare industry average (9.8%).
Return on Equity
High ROE: LH's Return on Equity (19.6%) is considered low.
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Financial Health
How is Laboratory Corporation of America Holdings's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: LH's short term assets ($5.2B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: LH's short term assets ($5.2B) do not cover its long term liabilities ($7.3B).
Debt to Equity History and Analysis
Debt Level: LH's net debt to equity ratio (38.9%) is considered satisfactory.
Reducing Debt: LH's debt to equity ratio has reduced from 103.4% to 50.4% over the past 5 years.
Debt Coverage: LH's debt is well covered by operating cash flow (42.6%).
Interest Coverage: LH's interest payments on its debt are well covered by EBIT (15.8x coverage).
Balance Sheet
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Dividend
What is Laboratory Corporation of America Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
1/6Dividend Score 1/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LH's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: LH's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (4.24%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether LH's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if LH's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (14.6%), LH's dividend payments are thoroughly covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Adam Schechter (56 yo)
2.58yrs
Tenure
US$20,551,605
Compensation
Mr. Adam H. Schechter serves as President & Chief Executive Officer at Laboratory Corporation of America Holdings since November 01, 2019 and serves as its Chairman since May 13, 2020. He served as a Speci...
CEO Compensation Analysis
Compensation vs Market: Adam's total compensation ($USD20.55M) is above average for companies of similar size in the US market ($USD13.44M).
Compensation vs Earnings: Adam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: LH's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: LH's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LH insiders have bought more shares than they have sold 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 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
- Implied Market Cap: US$22.485b
- Shares outstanding: 92.70m
- Website: https://www.labcorp.com
Number of Employees
Location
- Laboratory Corporation of America Holdings
- 531 South Spring Street
- Burlington
- North Carolina
- 27215
- United States
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/06/26 00:00 |
End of Day Share Price | 2022/06/24 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2021/12/31 |
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.