Laboratory Corporation of America Holdings
Market Cap
US$25.2b
Last Updated
2021/06/13 23:16 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 12.9% per year for the next 3 years
Snowflake Analysis
Outstanding track record and undervalued.
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 +/- 3% a week.
Volatility Over Time: LH's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.9%
LH
-0.7%
US Healthcare
0.8%
US Market
1 Year Return
54.1%
LH
38.9%
US Healthcare
44.4%
US Market
Return vs Industry: LH exceeded the US Healthcare industry which returned 38.9% over the past year.
Return vs Market: LH exceeded the US Market which returned 44.3% over the past year.
Shareholder returns
| LH | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | -0.7% | 0.8% |
| 30 Day | -5.8% | -0.7% | 3.0% |
| 90 Day | 7.8% | 8.0% | 4.4% |
| 1 Year | 54.1%54.1% | 40.7%38.9% | 46.7%44.4% |
| 3 Year | 36.5%36.5% | 49.9%43.8% | 60.3%50.4% |
| 5 Year | 105.7%105.7% | 103.4%88.5% | 128.3%102.8% |
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
1 week ago | Simply Wall St
At US$266, Is It Time To Put Laboratory Corporation of America Holdings (NYSE:LH) On Your Watch List?3 weeks ago | Simply Wall St
These 4 Measures Indicate That Laboratory Corporation of America Holdings (NYSE:LH) Is Using Debt SafelyValuation
Is Laboratory Corporation of America Holdings undervalued compared to its fair value and its price relative to the market?
35.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LH ($258.55) is trading below our estimate of fair value ($398.64)
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 (9.5x) compared to the US Healthcare industry average (22.1x).
PE vs Market: LH is good value based on its PE Ratio (9.5x) compared to the US market (19.7x).
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 (2.5x) compared to the US Healthcare industry average (4.1x).
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?
-12.9%
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 (-12.9% per year).
Earnings vs Market: LH's earnings are forecast to decline over the next 3 years (-12.9% per year).
High Growth Earnings: LH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LH's revenue (0.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: LH's revenue (0.9% 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 (14.1%).
Past Performance
How has Laboratory Corporation of America Holdings performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LH has high quality earnings.
Growing Profit Margin: LH's current net profit margins (17.3%) are higher than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: LH's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: LH's earnings growth over the past year (723.3%) exceeds its 5-year average (13% per year).
Earnings vs Industry: LH earnings growth over the past year (723.3%) exceeded the Healthcare industry 59.7%.
Return on Equity
High ROE: LH's Return on Equity (26.3%) is considered high.
Financial Health
How is Laboratory Corporation of America Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LH's short term assets ($5.6B) exceed its short term liabilities ($3.4B).
Long Term Liabilities: LH's short term assets ($5.6B) do not cover its long term liabilities ($7.0B).
Debt to Equity History and Analysis
Debt Level: LH's debt to equity ratio (54%) is considered high.
Reducing Debt: LH's debt to equity ratio has reduced from 122% to 54% over the past 5 years.
Debt Coverage: LH's debt is well covered by operating cash flow (57%).
Interest Coverage: LH's interest payments on its debt are well covered by EBIT (20.6x coverage).
Balance Sheet
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?
2.3yrs
Average management tenure
CEO
Adam Schechter (55 yo)
1.58yrs
Tenure
US$14,735,561
Compensation
Mr. Adam H. Schechter serves as President & Chief Executive Officer at Laboratory Corporation of America Holdings since November 01, 2019 and serves as its Chairman since May 13, 2020. He served as a Speci...
CEO Compensation Analysis
Compensation vs Market: Adam's total compensation ($USD14.74M) is above average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Adam's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: LH's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: LH's board of directors are considered experienced (6.3 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$25.245b
- Shares outstanding: 97.64m
- 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
Biography
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 offe...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/13 23:16 |
| End of Day Share Price | 2021/06/11 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.