Labcorp (LH)
Health Care · $25.5B market cap · SEC CIK 0000920148
fundamentals score out of 100
Next reports on Oct 22, 2026, with analysts expecting $4.80 in earnings per share.
The case for LH
- Earnings per share up 33.3%.
- A PEG of 0.76: a P/E of 25.4× is low for EPS growing 33%.
- Pays a modest 1.4% dividend.
The case against
- Revenue has shrunk 0.0% a year over five years.
- Long-term debt of $5.1B against $532M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 62 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 35 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 45 |
| Momentumhow the price has behaved lately | 75 |
| Stabilityhow violently it moves, what it owes and what it pays you | 63 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 25.4× |
|---|---|
| Price / book | 2.67× |
| Price / sales | 1.8× |
| Revenue growth (YoY) | +6.4% |
| EPS growth (YoY) | +33.3% |
| Gross margin | 29% |
| Operating margin | 10% |
| Net margin | 7% |
| Return on equity | 12% |
| Debt / equity | 0.69× |
| Current ratio | 1.80 |
| Dividend yield | 1.35% |
| Beta | 0.88 |
| 52-week range | $244.52 – $341.80 |
| Position in that range | 69% of the way up |
| 3-month return | +25.5% |
| 1-year return | +15.8% |
Five years of financials, as filed
Pulled from Labcorp's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $14.0B | $13.0B | $12.2B | $11.9B | $13.1B |
| Gross profit | $4.0B | $3.6B | $3.4B | $3.7B | $5.0B |
| Operating income | $1.4B | $1.1B | $726M | $1.4B | $3.0B |
| Net income | $877M | $746M | $418M | $1.3B | $2.4B |
| Operating cash flow | $1.6B | $1.6B | $1.3B | $2.0B | $3.1B |
| Capital expenditure | $435M | $490M | $454M | $429M | $422M |
| Total assets | $18.4B | $18.4B | $16.7B | $20.2B | $20.4B |
| Total liabilities | $9.8B | $10.3B | $8.8B | $10.0B | $10.1B |
| Shareholder equity | $8.6B | $8.1B | $7.9B | $10.1B | $10.3B |
| Cash | $532M | $1.5B | $537M | $321M | $1.5B |
| Long-term debt | $5.1B | $5.3B | $4.1B | $5.0B | $5.4B |
| Free cash flow | $1.2B | $1.1B | $874M | $1.5B | $2.7B |
| Gross margin | 28.8% | 27.9% | 27.7% | 31.3% | 38.0% |
| Operating margin | 9.9% | 8.4% | 6.0% | 12.1% | 23.2% |
| Net margin | 6.3% | 5.7% | 3.4% | 10.8% | 18.1% |
| Diluted shares | 83.8M | 84.4M | 87.6M | 91.6M | 97.5M |
Share count is down 14.1% over 4 years. Buybacks have been shrinking the pie.
What Labcorp says it does
Labcorp ® Holdings Inc. is a global leader of innovative and comprehensive laboratory services that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. The Company provides insights and accelerates innovations to improve health and improve lives through its unparalleled diagnostics and drug development laboratory capabilities. During 2025, the Company’s nearly 71,000 employees served clients in approximately 100 countries and performed more than 750 million tests for patients around the world. In addition, the Company provided support for more than 85% of the new drugs and therapeutic products approved in 2025 by the FDA. The Company’s strength in science, technology, and innovation, as well as its global scale, powers its continued success, differentiates the Company, and enables it to play a leading role in advancing healthcare across the…
Risk factors LH lists in its 10-K
- Risks Related to the Company’s Business and Operations
- General or macro-economic factors and significant fluctuations in economic conditions in the U.S. and globally may have a material adverse effect on the Company
- An inability to attract, retain, and develop experienced and qualified personnel, including personnel in key roles and critical positions, and increased personnel costs, could adversely affect the Company’s business
- Changes in government regulation or in practices relating to the pharmaceutical, biotechnology, or medical device industries could decrease the need for certain services that BLS provides
- Increased competition, including price competition, could have an adverse effect on the Company’s revenues and profitability
- Failure to develop or acquire licenses for new or improved testing technologies, or the Company’s customers using new technologies to replace offerings currently provided by the Company could adversely affect its business
- Changes or disruption in services, supplies, or transportation provided by third parties have impacted, and could in the future materially impact, the Company’s operations and business
- A failure to identify suitable acquisition targets and successfully close and integrate acquisitions could have a material adverse effect on the Company’s business objectives and its revenues and profitability
- Continued and increased consolidation of pharmaceutical, biotechnology and medical device companies, health systems, physicians and other customers could adversely affect the Company’s business
- Damage or disruption to the Company’s facilities or operations therein could adversely affect the Company’s business
- The failure to establish, update, or perform to appropriate quality standards could adversely affect the Company’s business and reputation
- The Company bears financial risk for contracts that, including for reasons beyond the Company’s control, may be underpriced, subject to cost overruns, delayed, or terminated or reduced in scope
- A significant increase in the Company’s days sales outstanding could have an adverse effect on the Company’s business, including by increasing its bad debt or decreasing its cash flow
- BLS’s revenues depend on R&D spending by companies in the pharmaceutical, biotechnology and medical device industries