Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $21.00B
• Dividend Yield: 1.15%
• Average Volume (3M): 954.60K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.43
• Revenue Growth: 7.13%
• EPS Growth: 74.73%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Equipment & Services
• EPS (TTM): 3.84
• Shares Outstanding: 83,668,570
• 10 Day Avg. Volume: 957,278
• 30 Day Avg. Volume: 954,598
• PEG Ratio: -14.70
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.85
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 4.13
• 1Y Price Target: $276.82
• Price Target Upside: 10.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Labcorp Holdings demonstrates solid financial health with efficient cash flow management and moderate revenue growth. The earnings call highlighted strong strategic initiatives and revenue growth, supporting a positive outlook. However, the stock's premium valuation and potential margin pressures warrant cautious optimism. Technical indicators suggest a neutral to slightly cautious market stance.

Positive Factors

Company Strategy

Hospital outreach M&A and collaboration activity are being used by LH to bolster volume growth and improve overall margins.

Financial Performance

Labcorp's first-quarter results were 3% ahead of consensus earnings per share.

Guidance and Outlook

Management reiterated its full-year revenue guidance and raised its adjusted EPS outlook by $0.05 to $16.05.

Negative Factors

Industry Risks

The FDA's plan to phase out animal testing could be a potential overhang for Labcorp Holdings' Early Development unit.

Revenue Expectations

Labcorp fell short of consensus revenue expectations by 2% due to weather-related headwinds impacting diagnostics and lower COVID-19 vaccine revenue.

Segment Performance

Both the Lab segment and Biopharma Laboratory Services came in below expectations, indicating challenges in meeting revenue targets.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Laboratory Corporation of America Holdings operates as a global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. It operates in two segments, Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). It offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, PAP tests, hemoglobin A1C and vitamin D, 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 specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases, including anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, and parentage and donor testing; and occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests. It provides online and mobile applications to enable patients to check test results; and online applications for managed care organizations and accountable care organizations. It offers end-to-end drug development, medical device, and companion diagnostic development solutions from early-stage research to clinical development and commercial market access. It serves managed care organizations, pharmaceutical, biotechnology, medical device and diagnostics companies, governmental agencies, physicians and other healthcare providers, hospitals and health systems, employers, patients and consumers, contract research organizations, and independent clinical laboratories. Laboratory Corporation of America Holdings has a collaboration agreement with Tigerlily Foundation to increase clinical trial diversity for women of color. The company was incorporated in 1994 and is headquartered in Burlington, North Carolina.

How the Company Makes Money

Labcorp makes money through its two main business segments: Labcorp Diagnostics and Labcorp Drug Development. Labcorp Diagnostics generates revenue by offering a variety of clinical laboratory testing services, including routine testing, specialty testing, and genetic testing, to healthcare providers, patients, and managed care organizations. This segment is supported by a robust network of laboratories and patient service centers. Labcorp Drug Development, formerly known as Covance, provides contract research services to pharmaceutical and biotechnology companies. It supports drug development from early-stage research to clinical trials and regulatory approval, generating revenue through service contracts and partnerships with pharmaceutical firms. Additionally, Labcorp collaborates with hospitals, health systems, and large healthcare organizations, leveraging its extensive infrastructure and expertise to drive growth in both its diagnostic and drug development services.

Labcorp Holdings Financial Statement Overview

Summary

Labcorp Holdings presents a solid financial position with stable income, a well-structured balance sheet, and strong cash flow generation. While growth is moderate, profitability and cash flow metrics suggest operational efficiency and effective financial management.

Income Statement

Labcorp Holdings exhibits moderate profitability and growth. The TTM gross profit margin is strong at 27.41%, and the net profit margin stands at 5.54%. Revenue growth rate from the previous year is 1.29%, indicating stable but slow growth. EBIT and EBITDA margins are at 8.37% and 12.37%, respectively, showing a healthy operational efficiency.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.78, reflecting manageable leverage. Return on equity is moderate at 8.79%, indicating decent shareholder returns. The equity ratio is 47.20%, suggesting a balanced capital structure between debt and equity.

Cash Flow

Cash flow metrics are robust, with a free cash flow growth rate of 5.12% over the previous year. The operating cash flow to net income ratio is 2.24, indicating strong cash generation relative to profits. Free cash flow to net income ratio is 1.58, further supporting the company's solid cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.18B	13.01B	12.16B	14.88B	16.12B	13.98B
	Gross Profit
3.61B	3.50B	3.36B	4.39B	5.62B	4.95B
	EBIT
1.10B	1.09B	725.60M	1.77B	3.26B	2.45B
	EBITDA
1.80B	1.81B	1.35B	1.95B	4.28B	3.25B
	Net Income Common Stockholders
730.80M	746.00M	418.00M	1.28B	2.38B	1.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
369.40M	1.52B	536.80M	430.00M	1.47B	1.32B
	Total Assets
17.60B	18.38B	16.73B	20.16B	20.39B	20.07B
	Total Debt
6.52B	7.27B	5.95B	6.29B	6.34B	6.76B
	Net Debt
6.15B	5.75B	5.42B	5.86B	4.87B	5.44B
	Total Liabilities
9.28B	10.31B	8.83B	10.06B	10.11B	10.71B
	Stockholders Equity
8.31B	8.05B	7.88B	10.10B	10.27B	9.36B
Cash Flow		Free Cash Flow
1.15B	1.10B	874.10M	1.47B	2.65B	1.75B
	Operating Cash Flow
1.63B	1.59B	1.33B	1.96B	3.11B	2.14B
	Investing Cash Flow
-1.31B	-1.37B	-1.17B	-1.65B	-884.60M	-643.20M
	Financing Cash Flow
-48.10M	779.90M	-59.30M	-1.32B	-2.07B	-517.40M

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 250.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Positive. The current price of 250.01 is above the 20-day moving average (MA) of 235.46, above the 50-day MA of 235.57, and above the 200-day MA of 231.89, indicating a bullish trend. The MACD of 5.16 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.

Labcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	79 Outperform	$19.64B	22.23	13.35%	1.75%	9.38%	6.43%
THC	78 Outperform	$14.65B	10.55	38.12%	―	-1.79%	-41.85%
IQV	76 Outperform	$27.01B	20.54	21.65%	―	2.84%	-0.16%
LH	73 Outperform	$21.00B	28.95	8.98%	1.15%	7.13%	74.73%
BIIB	68 Neutral	$18.23B	12.16	9.19%	―	1.25%	26.10%
ICLR	64 Neutral	$11.32B	15.29	8.01%	―	-0.48%	11.47%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%

Labcorp Holdings Corporate Events

Labcorp Holdings to Webcast Annual Shareholder Meeting

Labcorp announced that its Annual Meeting of Shareholders will be webcast live on May 15, 2025, at 9:00 a.m. ET, accessible through the Labcorp Investor Relations website. The webcast will be archived for one year, allowing stakeholders to stay informed about the company’s operations and strategic direction.

Spark’s Take on LH Stock

According to Spark, TipRanks’ AI Analyst, LH is a Outperform.

Labcorp Holdings demonstrates solid financial health with efficient cash flow management and moderate revenue growth. The earnings call highlighted strong strategic initiatives and revenue growth, supporting a positive outlook. However, the stock’s premium valuation and potential margin pressures warrant cautious optimism. Technical indicators suggest a neutral to slightly cautious market stance.

To see Spark’s full report on LH stock, click here.

Labcorp Holdings Declares Cash Dividend for Shareholders

On April 10, 2025, Labcorp Holdings Inc. announced that its Board of Directors declared a cash dividend of $0.72 per share of common stock, payable on June 11, 2025, to stockholders of record as of May 29, 2025. This decision underscores Labcorp’s commitment to returning value to its shareholders and reflects its stable financial position, potentially enhancing its attractiveness to investors.

Spark’s Take on LH Stock

According to Spark, TipRanks’ AI Analyst, LH is a Outperform.

Labcorp Holdings shows strong financial stability with robust cash flow and moderate revenue growth. Positive earnings call guidance and technical indicators support a favorable outlook. However, premium valuation and potential margin pressures warrant caution. The overall score reflects a stable but cautiously optimistic view of Labcorp’s stock potential.

To see Spark’s full report on LH stock, click here.

Labcorp Holdings to Announce Q1 2025 Financial Results

Labcorp Holdings Inc. announced it will release its financial results for the first quarter of 2025 on April 29, 2025, before the market opens. The company will host a conference call and webcast at 9 a.m. ET on the same day to discuss the results, with the earnings press release and financial information available on the Labcorp Investor Relations website.