NYSE:LH

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Laboratory Corporation of America Holdings

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

LH

-7.7%

US Healthcare

-5.3%

US Market


1 Year Return

20.0%

LH

10.6%

US Healthcare

10.4%

US Market

Return vs Industry: LH exceeded the US Healthcare industry which returned 10.4% over the past year.

Return vs Market: LH exceeded the US Market which returned 12% over the past year.


Shareholder returns

LHIndustryMarket
7 Day-3.7%-7.7%-5.3%
30 Day6.9%-0.8%-2.1%
90 Day3.6%-1.2%1.7%
1 Year20.0%20.0%12.1%10.6%12.9%10.4%
3 Year29.9%29.9%26.1%20.8%34.3%25.4%
5 Year64.1%64.1%53.4%42.2%73.7%54.3%

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?

28.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LH ($199.77) is trading below our estimate of fair value ($278.47)

Significantly Below Fair Value: LH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LH's PE Ratio (23x) is in line with the US Healthcare industry average.

PE vs Market: LH is poor value based on its PE Ratio (23x) compared to the US market (18.1x).


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 (2.4x) compared to the US Healthcare industry average (3x).


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 15 analysts?

-4.6%

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 (-4.6% per year).

Earnings vs Market: LH's earnings are forecast to decline over the next 3 years (-4.6% per year).

High Growth Earnings: LH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LH's revenue (0.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: LH's revenue (0.3% 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 (15.8%).


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 $578.8M 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 31.5%.


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 (9.8x 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?

1.4yrs

Average management tenure


CEO

Adam Schechter (55 yo)

0.83

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 ($USD5.94M) is below average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Adam's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Schechter
President0.83yrUS$5.94m0.0079%
$ 1.5m
Glenn Eisenberg
CFO & Executive VP6.25yrsUS$8.82m0.027%
$ 5.2m
Lance Berberian
Executive VP and Chief Information & Technology Officer0.58yrUS$2.70m0.011%
$ 2.1m
Brian Caveney
Executive VP3yrsUS$6.05m0.0032%
$ 618.0k
Mark Schroeder
Executive VP and President of Diagnostics Laboratory Operations & Global Supply Chain3.83yrsUS$4.85m0.0033%
$ 641.3k
Michelle Abelson
Laboratory Director of Operationsno datano datano data
Peter Wilkinson
Senior VP & Chief Accounting Officer1.42yrsno data0.00030%
$ 58.3k
Marcia Eisenberg
Chief Scientific Officer & Senior VPno datano datano data
Clarissa Willett
Vice President of Investor Relationsno datano datano data
Sandra Van Der Vaart
Executive VP1.58yrsno data0.0042%
$ 806.5k
Amy Summy
Executive VP & Chief Marketing Officer0.58yrno datano data
Judi Seltz
Executive VP & Chief Human Resources Officer1yrno data0.00060%
$ 116.6k

1.4yrs

Average Tenure

57yo

Average Age

Experienced Management: LH's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Adam Schechter
President0.83yrUS$5.94m0.0079%
$ 1.5m
Peter Neupert
Lead Independent Director1.25yrsUS$327.37k0.010%
$ 2.0m
Kerrii Anderson
Independent Director14.42yrsUS$314.87k0.021%
$ 4.1m
Jean-Luc Belingard
Independent Director25.42yrsUS$289.87k0.015%
$ 2.9m
Garheng Kong
Independent Director6.83yrsUS$309.87k0.0087%
$ 1.7m
Richelle Parham
Independent Director4.58yrsUS$289.87k0.0052%
$ 1.0m
R. Williams
Independent Director13.42yrsUS$304.87k0.0052%
$ 1.0m
D. Gilliland
Independent Director6.42yrsUS$289.87k0.0059%
$ 1.2m
Jeffrey Davis
Independent Director0.83yrUS$39.13kno data

6.4yrs

Average Tenure

63yo

Average Age

Experienced Board: LH's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$19.433b
  • 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

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
L1CA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:42
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.