📊 LH Key Takeaways
Is Labcorp Holdings Inc.. (LH) a Good Investment?
LabCorp demonstrates solid operational execution with net income growing 17.5% YoY, significantly outpacing revenue growth of 7.2%, indicating improving efficiency and profitability leverage. The company generates strong free cash flow of $1.2B with healthy 8.6% FCF margins while maintaining a conservative balance sheet with 0.59x debt-to-equity and 6.2x interest coverage, providing financial stability.
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
- Accelerating profitability: Net income growth (17.5%) exceeds revenue growth (7.2%) indicating operational leverage and margin expansion
- Strong cash generation: $1.2B free cash flow with 8.6% FCF margin demonstrates robust cash conversion capability
- Conservative capital structure: 0.59x debt-to-equity ratio with 6.2x interest coverage provides financial flexibility and low default risk
- Solid liquidity: 1.42x current ratio and 1.23x quick ratio support working capital needs
- 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
- Modest net margins of 6.3% create vulnerability to pricing pressure or reimbursement cuts common in healthcare sector
- Moderate ROE of 10.2% indicates capital is not deployed with exceptional returns relative to cost of capital
- $5.1B long-term debt obligation requires sustained cash flow generation to service and delever
- 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
- Operating margin trend and sustainability as company scales revenue
- Free cash flow generation and conversion efficiency in coming periods
- Debt reduction progress and debt-to-EBITDA ratio
- Operating margin
- Free cash flow margin
Labcorp Holdings Inc.. (LH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Labcorp Holdings Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q1 2023 | $2.9B | $188.9M | $2.12 |
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 (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LH's key strengths?
Claude: Accelerating profitability: Net income growth (17.5%) exceeds revenue growth (7.2%) indicating operational leverage and margin expansion. Strong cash generation: $1.2B free cash flow with 8.6% FCF margin demonstrates robust cash conversion capability. 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: Modest net margins of 6.3% create vulnerability to pricing pressure or reimbursement cuts common in healthcare sector. Moderate ROE of 10.2% indicates capital is not deployed with exceptional returns relative to cost of capital. 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 $14.0B.
Does LH pay dividends?
Labcorp Holdings Inc.. pays dividends, with $240.7M 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 $10.46.
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 April 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 10.2% (sector avg: 15%), net margin of 6.3% (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 $1.6B, with capital expenditures of $434.5M. FCF margin is 8.6%.
How does LH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 6.3% (avg: 12%), ROE 10.2% (avg: 15%), current ratio 1.42 (avg: 2).