📊 LH Key Takeaways
Is Labcorp Holdings Inc.. (LH) a Good Investment?
LabCorp is a financially stable, revenue-growing ($3.5B, +7.2% YoY) medical lab services company with adequate liquidity and debt service capacity, but returns to shareholders are severely constrained by poor capital efficiency (ROE 3.2%) and minimal free cash flow generation (2.0% margin). The $5.8B debt burden is the primary structural headwind limiting profitability conversion.
Labcorp’s fundamentals show healthy momentum, with 7.2% revenue growth translating into outsized EPS and net income gains from operating leverage and improved margins. Strong free cash flow (8.6% margin) and moderate leverage with solid interest coverage support continued investment and resilience. Sustained volume growth and mix improvement should underpin steady margin expansion.
Why Buy Labcorp Holdings Inc.. Stock? LH Key Strengths
- Solid revenue growth of 7.2% YoY in stable medical services sector
- Strong liquidity position with 1.73x current ratio and 1.54x quick ratio
- Adequate interest coverage of 6.9x indicates comfortable debt servicing capacity
- Positive operating cash flow generation of $191.5M demonstrates underlying business health
- Operating leverage driving EPS growth (+18.3% YoY)
- Strong free cash flow generation (FCF ~$1.21B; 8.6% margin)
- Sound balance sheet and coverage (D/E 0.59x; interest coverage 6.2x)
LH Stock Risks: Labcorp Holdings Inc.. Investment Risks
- Critically low ROE of 3.2% and ROA of 1.5% indicating poor returns on shareholder capital
- Weak free cash flow margin of 2.0% limits financial flexibility and reinvestment capacity
- High debt burden of $5.8B relative to $8.7B equity creates significant interest expense drag
- Net margin (7.9%) substantially compressed versus operating margin (10.8%), showing debt service strain
- 71 Form 4 filings in 90 days warrants monitoring for insider sentiment
- Reimbursement and pricing pressure from public and commercial payers
- Labor and input cost inflation potentially compressing margins
- Volume volatility and competitive pressure from hospital and independent labs
Key Metrics to Watch
- Free cash flow margin expansion above 2.0%
- Return on Equity improvement trajectory from current 3.2%
- Debt-to-equity ratio reduction through deleveraging
- Operating margin sustainability amid competitive pressures
- Operating margin
- Free cash flow margin
Labcorp Holdings Inc.. (LH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility.
LH Profit Margin, ROE & Profitability Analysis
LH vs Healthcare Sector: How Labcorp Holdings Inc.. Compares
How Labcorp Holdings Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Labcorp Holdings Inc.. Stock Overvalued? LH Valuation Analysis 2026
Based on fundamental analysis, Labcorp Holdings Inc.. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Labcorp Holdings Inc.. Balance Sheet: LH Debt, Cash & Liquidity
LH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Labcorp Holdings Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $4.77 reflects profitable operations.
LH Revenue Growth, EPS Growth & YoY Performance
LH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.3B | $212.8M | $2.52 |
| Q3 2025 | $3.3B | $169.3M | $2.00 |
| Q2 2025 | $3.2B | $205.3M | $2.43 |
| Q1 2025 | $3.2B | $212.8M | $2.52 |
| Q3 2024 | $3.1B | $169.3M | $2.00 |
| Q2 2024 | $3.0B | $188.9M | $2.12 |
| Q1 2024 | $3.0B | $212.9M | $2.39 |
| Q3 2023 | $2.9B | $183.3M | $2.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Labcorp Holdings Inc.. Dividends, Buybacks & Capital Allocation
LH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Labcorp Holdings Inc.. (CIK: 0000920148)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LH
What is the AI rating for LH?
Labcorp Holdings Inc.. (LH) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LH's key strengths?
Claude: Solid revenue growth of 7.2% YoY in stable medical services sector. Strong liquidity position with 1.73x current ratio and 1.54x quick ratio. ChatGPT: Operating leverage driving EPS growth (+18.3% YoY). Strong free cash flow generation (FCF ~$1.21B; 8.6% margin).
What are the risks of investing in LH?
Claude: Critically low ROE of 3.2% and ROA of 1.5% indicating poor returns on shareholder capital. Weak free cash flow margin of 2.0% limits financial flexibility and reinvestment capacity. ChatGPT: Reimbursement and pricing pressure from public and commercial payers. Labor and input cost inflation potentially compressing margins.
What is LH's revenue and growth?
Labcorp Holdings Inc.. reported revenue of $3.5B.
Does LH pay dividends?
Labcorp Holdings Inc.. pays dividends, with $61.2M distributed to shareholders in the trailing twelve months.
Where can I find LH SEC filings?
Official SEC filings for Labcorp Holdings Inc.. (CIK: 0000920148) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LH's EPS?
Labcorp Holdings Inc.. has a diluted EPS of $3.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Labcorp Holdings Inc.. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LH stock overvalued or undervalued?
Valuation metrics for LH: ROE of 3.2% (sector avg: 15%), net margin of 7.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LH stock in 2026?
Our dual AI analysis gives Labcorp Holdings Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LH's free cash flow?
Labcorp Holdings Inc..'s operating cash flow is $191.5M, with capital expenditures of $121.0M. FCF margin is 2.0%.
How does LH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 7.9% (avg: 12%), ROE 3.2% (avg: 15%), current ratio 1.73 (avg: 2).