Quality Investor

Labcorp Holdings Inc.

Rank #314Capital ReturnWatchlistCompare with other stocks

LH · NYSE · Healthcare

Labcorp Holdings Inc. (LH) — Rank #314 by gross profitability (GP/assets 0.22) · ROE 10.2% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · CIK 0000920148 · all metrics point-in-time as of the filing date.

About

Labcorp Holdings Inc. provides laboratory services.

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It operates in Diagnostics Laboratories and Biopharma Laboratory Services segments. The company offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, PAP tests, hemoglobin A1C, PSA, tests for sexually transmitted diseases, vitamin D testing, microbiology cultures and procedures, and alcohol and other substance abuse tests. It also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases; services related to anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, parentage and donor testing, occupational testing service, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests; and health and wellness services to employers and managed care organizations. In addition, it offers digital pathology solutions, a pathology platforms that support the digitization, centralized review, and sharing of pathology slides; provider and payer digital platforms, an online applications for providers, MCOs, and ACOs; online and mobile applications that enable patients to check offerings, schedule PSC visits, check-in upon PSC arrival, complete documentation, access tests and test results, and manage their accounts; and Generative AI enabled Test Selection, a generative AI enabled tool. It serves clients, third party, medicare/medicaid, patients, pharmaceutical, biotechnology, medical device, diagnostic companies, and CROs. It has a collaboration with the Children's Hospital of Philadelphia to accelerate the discovery, development, and availability of pediatric diagnostics.

The company was founded in 1995 and is headquartered in Burlington, North Carolina.

Industry
Diagnostics & Research
Sector
Healthcare
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

71,000

Industry

Diagnostics & Research

Exchange

NYSE

12/12

Flags passed

LH passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
10.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.15
Current ratio
1.80×
Net cash
-$5.72B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
7.2%
Piotroski F-Score
8 / 9
Share dilution
-0.7%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.22

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

7th of 7 SIC 80 peers

Return on equity

10.2%

Gross margin

28.8%

5th of 7 SIC 80 peers

Revenue growth (YoY)

7.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

5.6%

Revenue CAGR (5Y)

-0.0%

Earnings CAGR (3Y)

-11.8%

FCF CAGR (3Y)

-6.5%

Cash Flow Health

Is the cash real?

No warning flags · FCF 38% above net income

Free cash flow

$1.21B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

37.6%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $5.72B, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.15

5th of 6 SIC 80 peers (best = lowest)

Current ratio

1.80×

5th of 7 SIC 80 peers

Quick ratio

1.17×

Net cash

-$5.72B

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
27.5%5/5 Strong
FCF coverage
5.01×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.15 · IC 6.18×3/5 Good

Capital allocation quality

Composite score

1.7 / 5

Weak
Share count trend(net buybacks)
-0.7%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory
-4.0%2/5 Fair

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Decline
Capital Return

Price History

LH+32.3% · +5.7% CAGRSPY+82.9% · +12.8% CAGR