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Laboratory of America Holdings

NYSE:LH
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LH
NYSE
$14B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. The last earnings update was 53 days ago. More info.


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LH Share Price and Events
7 Day Returns
-9.3%
NYSE:LH
-3%
US Healthcare
-0.8%
US Market
1 Year Returns
-13.4%
NYSE:LH
-5.1%
US Healthcare
7%
US Market
LH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Laboratory of America Holdings (LH) -9.3% -6.5% 6.3% -13.4% 15.3% 45.4%
US Healthcare -3% -7.7% -11.8% -5.1% 10.9% 60.2%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • LH underperformed the Healthcare industry which returned -5.1% over the past year.
  • LH underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
LH
Industry
5yr Volatility vs Market

LH Value

 Is Laboratory of America Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Laboratory of America Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Laboratory of America Holdings.

NYSE:LH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (42.59%))
0.967
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.967 * 5.96%)
8.5%

Discounted Cash Flow Calculation for NYSE:LH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Laboratory of America Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.5%)
2019 1,060.07 Analyst x5 977.06
2020 1,121.73 Analyst x4 952.93
2021 1,143.72 Analyst x2 895.53
2022 1,168.63 Est @ 2.18% 843.38
2023 1,196.03 Est @ 2.34% 795.56
2024 1,225.44 Est @ 2.46% 751.30
2025 1,256.58 Est @ 2.54% 710.06
2026 1,289.22 Est @ 2.6% 671.46
2027 1,323.22 Est @ 2.64% 635.20
2028 1,358.49 Est @ 2.67% 601.06
Present value of next 10 years cash flows $7,833.53
NYSE:LH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,358.49 × (1 + 2.73%) ÷ (8.5% – 2.73%)
$24,203.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $24,203.52 ÷ (1 + 8.5%)10
$10,708.81
NYSE:LH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,833.53 + $10,708.81
$18,542.34
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,542.34 / 98.68
$187.91
NYSE:LH Discount to Share Price
Calculation Result
Value per share (USD) From above. $187.91
Current discount Discount to share price of $144.25
= -1 x ($144.25 - $187.91) / $187.91
23.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Laboratory of America Holdings is available for.
Intrinsic value
23%
Share price is $144.25 vs Future cash flow value of $187.91
Current Discount Checks
For Laboratory of America Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Laboratory of America Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Laboratory of America Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Laboratory of America Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Laboratory of America Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $8.71
NYSE:LH Share Price ** NYSE (2019-04-22) in USD $144.25
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.9x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Laboratory of America Holdings.

NYSE:LH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LH Share Price ÷ EPS (both in USD)

= 144.25 ÷ 8.71

16.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laboratory of America Holdings is good value based on earnings compared to the US Healthcare industry average.
  • Laboratory of America Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Laboratory of America Holdings's expected growth come at a high price?
Raw Data
NYSE:LH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
8.3%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:LH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.55x ÷ 8.3%

1.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laboratory of America Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Laboratory of America Holdings's assets?
Raw Data
NYSE:LH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $70.49
NYSE:LH Share Price * NYSE (2019-04-22) in USD $144.25
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:LH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LH Share Price ÷ Book Value per Share (both in USD)

= 144.25 ÷ 70.49

2.05x

* Primary Listing of Laboratory of America Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Laboratory of America Holdings is good value based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Laboratory of America Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Laboratory of America Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LH Future Performance

 How is Laboratory of America Holdings expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Laboratory of America Holdings expected to grow at an attractive rate?
  • Laboratory of America Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Laboratory of America Holdings's earnings growth is positive but not above the United States of America market average.
  • Laboratory of America Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 8.3%
NYSE:LH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 3%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 13,196 1,701 1,338 1
2021-12-31 12,441 1,614 1,120 8
2020-12-31 11,882 1,575 999 19
2019-12-31 11,479 1,478 939 20
NYSE:LH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 11,333 1,305 884
2018-09-30 11,189 1,345 1,455
2018-06-30 10,979 1,445 1,307
2018-03-31 10,641 1,388 1,258
2017-12-31 10,308 1,498 1,227
2017-09-30 9,951 1,382 724
2017-06-30 9,702 1,235 732
2017-03-31 9,556 1,274 751
2016-12-31 9,553 1,197 712
2016-09-30 9,295 1,112 658
2016-06-30 9,192 1,150 633
2016-03-31 9,029 1,197 599

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Laboratory of America Holdings's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
  • Laboratory of America Holdings's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Laboratory of America Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 10.48 10.83 10.13 2.00
2020-12-31 9.80 10.51 9.26 8.00
2019-12-31 9.08 9.56 8.58 8.00
NYSE:LH Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 8.71
2018-09-30 14.27
2018-06-30 12.81
2018-03-31 12.31
2017-12-31 11.98
2017-09-30 7.06
2017-06-30 7.12
2017-03-31 7.31
2016-12-31 6.94
2016-09-30 6.44
2016-06-30 6.23
2016-03-31 5.91

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Laboratory of America Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Laboratory of America Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Laboratory of America Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LH Past Performance

  How has Laboratory of America Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Laboratory of America Holdings's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Laboratory of America Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Laboratory of America Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Laboratory of America Holdings's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Laboratory of America Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Laboratory of America Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,333.40 883.70 1,496.80
2018-09-30 11,188.50 1,454.70 1,787.90
2018-06-30 10,978.60 1,307.40 1,766.80
2018-03-31 10,640.50 1,258.40 1,742.10
2017-12-31 10,308.00 1,227.10 1,419.40
2017-09-30 9,950.60 723.70 1,436.10
2017-06-30 9,701.90 731.70 1,471.10
2017-03-31 9,555.70 751.00 1,521.90
2016-12-31 9,552.90 711.80 1,305.60
2016-09-30 9,294.70 657.70 1,591.80
2016-06-30 9,191.90 632.90 1,651.50
2016-03-31 9,028.60 598.60 1,556.00
2015-12-31 8,505.70 437.60 1,468.60
2015-09-30 7,773.60 447.20 1,359.50
2015-06-30 7,055.50 429.70 1,212.80
2015-03-31 6,353.20 401.20 1,203.80
2014-12-31 6,011.60 511.20 1,180.90
2014-09-30 5,935.90 517.90 1,164.10
2014-06-30 5,846.30 529.00 1,142.80
2014-03-31 5,798.10 539.70 1,130.50
2013-12-31 5,808.30 573.80 1,128.80
2013-09-30 5,776.60 567.70 1,121.90
2013-06-30 5,733.80 567.40 1,118.10
2013-03-31 5,689.00 568.70 1,116.70
2012-12-31 5,671.40 583.10 1,104.70
2012-09-30 5,632.20 598.30 1,096.20
2012-06-30 5,617.30 584.60 1,104.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Laboratory of America Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Laboratory of America Holdings used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Laboratory of America Holdings's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Laboratory of America Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Laboratory of America Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LH Health

 How is Laboratory of America Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Laboratory of America Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Laboratory of America Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Laboratory of America Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Laboratory of America Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Laboratory of America Holdings Company Filings, last reported 3 months ago.

NYSE:LH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,990.50 6,062.90 426.80
2018-09-30 7,268.50 6,462.90 892.60
2018-06-30 7,057.70 6,462.80 221.40
2018-03-31 7,004.20 6,777.00 361.80
2017-12-31 6,824.90 6,762.10 316.60
2017-09-30 6,152.80 7,218.40 409.30
2017-06-30 5,894.00 6,127.90 299.90
2017-03-31 5,666.20 5,921.10 365.50
2016-12-31 5,521.00 5,849.50 433.60
2016-09-30 5,539.00 6,171.40 567.60
2016-06-30 5,328.90 6,055.00 639.60
2016-03-31 5,182.30 6,394.90 696.30
2015-12-31 4,960.00 6,364.20 716.40
2015-09-30 4,929.00 6,681.20 713.00
2015-06-30 4,786.20 6,787.30 619.00
2015-03-31 4,533.80 6,946.30 446.40
2014-12-31 2,838.20 3,029.80 580.00
2014-09-30 2,789.20 3,014.70 575.70
2014-06-30 2,675.70 3,007.50 479.50
2014-03-31 2,519.90 3,008.30 338.90
2013-12-31 2,510.70 3,000.40 404.00
2013-09-30 2,585.60 2,663.90 174.10
2013-06-30 2,683.80 2,509.90 111.30
2013-03-31 2,799.20 2,322.90 185.80
2012-12-31 2,738.10 2,655.00 466.80
2012-09-30 2,737.60 2,660.10 466.00
2012-06-30 2,652.00 2,109.60 124.40
  • Laboratory of America Holdings's level of debt (86.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (119.5% vs 86.7% today).
  • Debt is well covered by operating cash flow (21.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess Laboratory of America Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Laboratory of America Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LH Dividends

 What is Laboratory of America Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Laboratory of America Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Laboratory of America Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Laboratory of America Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Laboratory of America Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Laboratory of America Holdings has not reported any payouts.
  • Unable to verify if Laboratory of America Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Laboratory of America Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Laboratory of America Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Laboratory of America Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Laboratory of America Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Laboratory of America Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Laboratory of America Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LH Management

 What is the CEO of Laboratory of America Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave King
COMPENSATION $12,264,236
AGE 62
TENURE AS CEO 12.3 years
CEO Bio

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 attorney both in private practice and with the US Department of Justice. He serves as the Member of Advisory Board at Flare Capital Management Company, LLC. He has more than experience in both the public and the private sector. He has a deep understanding of the clinical laboratory industry, business strategy, sales and marketing and executive management. He began his LabCorp tenure as General Counsel in 2001. He served as President of Esoterix, Inc. He served as the Chief Executive Officer of Cellmark Forensics, Inc. (Alternate name: Orchid Cellmark Inc). He served as the President of US LABS Inc. since October 2005. Mr. King served in the Department of Justice as an Assistant United States Attorney for 17 years and as a Partner in a private law firm. He served as an Executive Vice President and Chief Operating Officer of Laboratory Corporation of America Holdings from December 1, 2005 to January 2007. Mr. King served as the President of Integrated Oncology since October 2005. He served as an Executive Vice President of Strategic Planning and Corporate Development of Laboratory Corporation of America Holdings from January 2004 to December 1, 2005 and served as its Senior Vice President, General Counsel and Chief Compliance Officer since September 2001. He was a Partner of Hogan & Hartson LLP from 1992 to 2001. He serves as the Chairman of the American Clinical Laboratory Association. Mr. King has been the Chairman of Laboratory Corp. of America Holdings since May 6, 2009. He served as the Chairman of the Board of Cellmark Forensics, Inc. He has been a Director of Laboratory Corporation of America Holdings since January 1, 2007. He also sits on the Boards of Directors of the Seattle Science Foundation and PATH, Inc. He serves as a Member of Advisory Board at Grid Therapeutics, LLC. Mr. King serves as a Member of Board of Advisors at HealthQuest Capital. He serves on the Board of Trustees of Durham Academy. He served as Independent Director at Cardinal Health, Inc. since September 1, 2011 until November 7, 2018. He serves as a Director of Personalized Medicine Coalition. He also sits on the on the boards of trustees of Elon University, on the advisory board for Duke University’s Robert J. Margolis and MD, Center for Health Policy. He was a Member of Scientific Advisory Board of Hatteras Venture Partners. Mr. King holds an AB degree from Princeton University and a Juris Doctorate from the University of Pennsylvania law School.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year.
  • Dave's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Laboratory of America Holdings management team in years:

4.5
Average Tenure
57
Average Age
  • The tenure for the Laboratory of America Holdings management team is about average.
Management Team

Dave King

TITLE
Chairman
COMPENSATION
$12M
AGE
62
TENURE
12.3 yrs

Glenn Eisenberg

TITLE
CFO & Executive VP
COMPENSATION
$3M
AGE
57
TENURE
4.8 yrs

John Ratliff

TITLE
Chief Executive Officer of Covance Drug Development
COMPENSATION
$7M
AGE
58
TENURE
2.5 yrs

Michelle Abelson

TITLE
Laboratory Director of Operations

Peter Wilkinson

TITLE
Senior VP & Chief Accounting Officer
AGE
47

Lance Berberian

TITLE
Chief Information Officer & Senior VP
COMPENSATION
$2M
AGE
55
TENURE
5.2 yrs

Marcia Eisenberg

TITLE
Chief Scientific Officer & Senior VP

Scott Frommer

TITLE
Vice President of Investor Relations

Sandy van der Vaart

TITLE
Senior VP
AGE
58
TENURE
0.2 yrs

Lisa Uthgenannt

TITLE
Chief HR Officer & Senior VP
COMPENSATION
$1M
AGE
57
TENURE
4.1 yrs
Board of Directors Tenure

Average tenure and age of the Laboratory of America Holdings board of directors in years:

8.1
Average Tenure
62
Average Age
  • The tenure for the Laboratory of America Holdings board of directors is about average.
Board of Directors

Dave King

TITLE
Chairman
COMPENSATION
$12M
AGE
62
TENURE
9.9 yrs

Kerrii Anderson

TITLE
Independent Director
COMPENSATION
$306K
AGE
61
TENURE
12.9 yrs

R. Williams

TITLE
Independent Director
COMPENSATION
$296K
AGE
69
TENURE
11.9 yrs

Peter Neupert

TITLE
Independent Director
COMPENSATION
$296K
AGE
62
TENURE
6.3 yrs

Garheng Kong

TITLE
Independent Director
COMPENSATION
$281K
AGE
43
TENURE
5.3 yrs

Adam Schechter

TITLE
Lead Independent Director
COMPENSATION
$301K
AGE
53
TENURE
0.3 yrs

Jean-Luc Bélingard

TITLE
Independent Director
COMPENSATION
$750K
AGE
70
TENURE
24 yrs

Bob Mittelstaedt

TITLE
Director
COMPENSATION
$326K
AGE
74
TENURE
22.4 yrs

D. Gilliland

TITLE
Independent Director
COMPENSATION
$281K
AGE
63
TENURE
5 yrs

Richelle Parham

TITLE
Independent Director
COMPENSATION
$281K
AGE
50
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Jun 18 Sell Lisa Uthgenannt Individual 04. Jun 18 04. Jun 18 -4,500 $182.10 $-819,451
04. Jun 18 Sell D. Gilliland Individual 31. May 18 31. May 18 -1,263 $181.30 $-228,967
04. Jun 18 Sell Lance Berberian Individual 31. May 18 31. May 18 -5,500 $182.37 $-1,002,672
01. Jun 18 Sell Gary Huff Individual 30. May 18 30. May 18 -1,610 $182.50 $-293,823
01. Jun 18 Sell Glenn Eisenberg Individual 30. May 18 30. May 18 -10,000 $181.50 $-1,812,065
X
Management checks
We assess Laboratory of America Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Laboratory of America Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LH News

Simply Wall St News

Is Laboratory Corporation of America Holdings's (NYSE:LH) CEO Salary Justified?

Dave King has been the CEO of Laboratory Corporation of America Holdings (NYSE:LH) since 2007. … View our latest analysis for Laboratory of America Holdings? … Our data indicates that Laboratory Corporation of America Holdings is worth US$16b, and total annual CEO compensation is US$12m.

Simply Wall St -

What Laboratory Corporation of America Holdings's (NYSE:LH) ROE Can Tell Us

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Laboratory Corporation of America Holdings (NYSE:LH). … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Laboratory of America Holdings (NYSE:LH) Be Disappointed With Their 56% Profit?

For example, the Laboratory Corporation of America Holdings (NYSE:LH) share price is up 56% in the last 5 years, clearly besting than the market return of around 44% (ignoring dividends). … Over half a decade, Laboratory of America Holdings managed to grow its earnings per share at 6.5% a year. … Dive deeper into Laboratory of America Holdings's key metrics by checking this interactive graph of Laboratory of America Holdings's earnings, revenue and cash flow.

Simply Wall St -

At US$147, Is Laboratory Corporation of America Holdings (NYSE:LH) Worth Looking At Closely?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

What Should Investors Know About Laboratory Corporation of America Holdings's (NYSE:LH) Long Term Outlook?

The latest earnings update Laboratory Corporation of America Holdings (NYSE:LH) released in December 2018a

Simply Wall St -

A Look At The Intrinsic Value Of Laboratory Corporation of America Holdings (NYSE:LH)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

What does Laboratory Corporation of America Holdings's (NYSE:LH) Balance Sheet Tell Us About Its Future?

Investors pursuing a solid, dependable stock investment can often be led to Laboratory Corporation of America Holdings (NYSE:LH), a large-cap worth US$14b. … I will provide an overview of Laboratory of America Holdings’s financial liquidity and leverage to give you an idea of Laboratory of America Holdings’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Read This Before Buying Laboratory Corporation of America Holdings (NYSE:LH) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Laboratory Corporation of America Holdings (NYSE:LH). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Laboratory of America Holdings.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Laboratory Corporation of America Holdings's (NYSE:LH)

In 2007 Dave King was appointed CEO of Laboratory Corporation of America Holdings (NYSE:LH). … First, this article will compare CEO compensation with compensation at other large companies. … Our data indicates that Laboratory Corporation of America Holdings is worth US$13b, and total annual CEO compensation is US$12m.

Simply Wall St -

Here’s why Laboratory Corporation of America Holdings’s (NYSE:LH) Returns On Capital Matters So Much

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

LH Company Info

Description

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 various clinical laboratory 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. The company also provides testing services in the areas of women's health, allergy, diagnostic genetics, cardiovascular disease, infectious disease, endocrinology, oncology, coagulation, pharmacogenetics, toxicology, and medical drug monitoring; and esoteric testing, cancer diagnostics, and other complex procedures. In addition, it provides technology-enabled solutions, including a suite of applications to enable patients, healthcare providers, health systems, accountable care organizations, and insurers with convenient and secure access to LCD’s data and services, as well as billing for laboratory services. Further, it offers end-to-end drug development, medical device, and diagnostic development solutions from research to clinical development and commercial market access. The company primarily serves managed care organizations, biopharmaceutical companies, physicians and other healthcare providers, hospitals and health systems, governmental agencies, employers, patients and consumers, contract research organizations, academic institutions, and independent clinical laboratories. Laboratory Corporation of America Holdings has collaborations with the Boston University, Columbia University, Duke University, Johns Hopkins University, The Mount Sinai Hospital, the University of Tennessee, Yale University, and QIAGEN N.V. The company was founded in 1971 and is headquartered in Burlington, North Carolina.

Details
Name: Laboratory Corporation of America Holdings
LH
Exchange: NYSE
Founded: 1971
$14,234,331,792
98,678,210
Website: http://www.labcorp.com
Address: Laboratory Corporation of America Holdings
358 South Main Street,
Burlington,
North Carolina, 27215,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LH Common Stock New York Stock Exchange US USD 07. Jul 1988
DB LAB Common Stock Deutsche Boerse AG DE EUR 07. Jul 1988
LSE 0JSY Common Stock London Stock Exchange GB USD 07. Jul 1988
BMV LH * Common Stock Bolsa Mexicana de Valores MX MXN 07. Jul 1988
Number of employees
Current staff
Staff numbers
61,000
Laboratory of America Holdings employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 23:40
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.