# Laboratory Corporation of America Holdings (LH.US)

Canonical: https://gigainvestors.com/s/LH

Analysis as of: 2026-10-16T07:29:49.676Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $325.07 per share; close as of 2026-10-15.

Estimated value: low $155.67 per share, central $177.13 per share, high $205.70 per share. Buy at or below the central value $177.13 per share. Valuation as of 2026-10-16T07:29:49.676Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: 0.17×

- FY2021: 0.23×

- FY2022: 0.12×

- FY2023: 0.06×

- FY2024: 0.08×

- FY2025: 0.11×

- LTM to Jun 2026: 0.11×

### moat: pass

- ROIC, median of available years: 16.3%

- ROIC, second-lowest year: 11.4%

- Typical minus recent gross margin: 3.0 pp

- Typical gross margin (annual median): 29.7%

- Recent gross margin (lower of latest and 3-year median): 26.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.4%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 19.3%

- FY2017: 23.3%

- FY2018: 17.4%

- FY2019: 15.2%

- FY2020: 24.1%

- FY2021: 25.1%

- FY2022: 11.8%

- FY2023: 6.8%

- FY2024: 11.4%

- FY2025: 14.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.1B

- Net income, five-year total: $4.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: 0.8 pp

- Working capital / revenue, final three-year average: 14.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.04×

- FY2023: 1.30×

- FY2024: 1.21×

- FY2025: 1.28×

- LTM to Jun 2026: 1.21×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.3% vs 11.4%

- Per-share earnings: 6.03 to 8.84 (three-year endpoint medians)

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.3%

- Ordinary dilution, 5-year annual growth: -6.0%

- Market cap gain: $5.3B

- Cumulative retained earnings: $3.7B

- Diluted shares, 10-year annual growth: -3.3%

- Diluted shares, 5-year annual growth: -6.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.9%

- Per-share value change: $2.81

- Per-share value, starting three-year median: $6.03

- Per-share value, ending three-year median: $8.84

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 3.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $7.4B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 19.3%

- ROIC, last three-year median: 11.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.03

- FY2017: $10.49

- FY2018: $7.40

- FY2019: $7.18

- FY2020: $13.64

- FY2021: $24.38

- FY2022: $13.96

- FY2023: $4.77

- FY2024: $8.84

- FY2025: $10.46

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 7.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.87×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.20×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.1%

- FY2017: -1.2%

- FY2018: -2.6%

- FY2019: -3.4%

- FY2020: -2.9%

- FY2021: -3.6%

- FY2022: -3.4%

- FY2023: -5.4%

- FY2024: -4.6%

- FY2025: -4.2%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.5% a year for ten years · sales +2.8%

Story as of 2026-10-16T09:59:04.138Z; price observation 2026-10-15.

Price needs cash profits to grow 8.5% a year for ten years

- 2025-04-29: Labcorp Q1 Earnings Surpass Estimates, Revenues Miss, Stock Gains ([finance.yahoo.com](https://finance.yahoo.com/news/labcorp-q1-earnings-surpass-estimates-125300719.html))

- 2025-08-15: Labcorp’s SWOT analysis: diagnostic giant faces PAMA headwinds, stock outlook mixed ([investing.com](https://www.investing.com/news/swot-analysis/labcorps-swot-analysis-diagnostic-giant-faces-pama-headwinds-stock-outlook-mixed-93CH-4194368))

- 2025-09-17: LH Stock Rises on Acquisition of BioReference Health's Select Assets ([finance.yahoo.com](https://finance.yahoo.com/news/lh-stock-rises-acquisition-bioreference-125200045.html))

- 2025-10-28: LH Q3 Earnings Beat, Revenues Miss, '25 Sales View Cut, Stock Down ([finance.yahoo.com](https://finance.yahoo.com/news/lh-q3-earnings-beat-revenues-140100415.html))

- 2026-02-17: Labcorp forecasts upbeat annual profit on strong demand for diagnostic products ([finance.yahoo.com](https://finance.yahoo.com/news/labcorp-forecasts-upbeat-annual-profit-125941128.html))

- 2026-07-31: LH Q2 Deep Dive: Specialty Testing and Consumer Growth Drive Guidance Increase ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/lh-q2-deep-dive-specialty-225957330.html))

### Sales · FY2025–2026

sales +2.8%; source https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm; observed 2026-02-24.

- FY2017: $10B 

- FY2018: $11B 

- FY2019: $12B 

- FY2020: $14B 

- FY2021: $13B 

- FY2022: $12B 

- FY2023: $12B 

- FY2024: $13B 

- FY2025: $14B 

- FY2026: $14B 

### Gross margin · FY2025

gross margin 26.8%; source https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm; observed 2026-02-24.

- FY2016: 33.0% 

- FY2017: 33.2% 

- FY2018: 28.0% 

- FY2019: 28.1% 

- FY2020: 35.4% 

- FY2021: 38.0% 

- FY2022: 31.3% 

- FY2023: 27.7% 

- FY2024: 27.9% 

- FY2025: 26.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 14 billion.

- Source: https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm (filed 2026-02-24); FY2025: revenue 13951700000; grossProfit 3732500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LH.US: Labcorp Holdings Inc. provides laboratory services. 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 strategic collaboration with the Children's Hospital of Philadelphia to accelerate the discovery, development, and availability of pediatric diagnostics; a strategic alliance with the National Association of Community Health Centers to support current and emerging clinical leaders through the NACHC Leadership Exchange for Chief Medical Officers; and Alliance for Clinical Trials in Oncology to advance national 

### Why customers stay

Margins ranged from 26.8% to 27.9% during 2023–25; it earns 16.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 27.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 27.9%.

- Source: https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 26.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.19301109693024437],[2017,0.23325240228430735],[2018,0.17363334776244696],[2019,0.15164227214738726],[2020,0.2409566729611586],[2021,0.2507623623390891],[2022,0.11768869121001957],[2023,0.06785812897395105],[2024,0.11378080501159729],[2025,0.141331105186083]]; median 0.1626378099549171. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 51.8% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 278900000; cash acquisitions 548600000; owner earnings 952400000. Growth capex plus acquisitions / owner earnings = 0.5760184796304074.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 315400000; cash acquisitions 1882600000; owner earnings 1486000000. Growth capex plus acquisitions / owner earnings = 1.2668909825033647.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 379800000; cash acquisitions 117800000; owner earnings 1056000000. Growth capex plus acquisitions / owner earnings = 0.1115530303030303.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 400200000; cash acquisitions 876000000; owner earnings 1000800000. Growth capex plus acquisitions / owner earnings = 0.8752997601918465.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 381700000; cash acquisitions 267600000; owner earnings 1799100000. Growth capex plus acquisitions / owner earnings = 0.1487410371852593.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 460400000; cash acquisitions 496900000; owner earnings 2493900000. Growth capex plus acquisitions / owner earnings = 0.19924616063194195.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 481900000; cash acquisitions 1164000000; owner earnings 1334400000. Growth capex plus acquisitions / owner earnings = 0.8723021582733813.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 453600000; cash acquisitions 671500000; owner earnings 541700000. Growth capex plus acquisitions / owner earnings = 1.2396160236293152.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 489900000; cash acquisitions 839000000; owner earnings 899600000. Growth capex plus acquisitions / owner earnings = 0.9326367274344153.

- Source: https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 434500000; cash acquisitions 582000000; owner earnings 1123100000. Growth capex plus acquisitions / owner earnings = 0.5182085299617131.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,139500000],[2017,3342200000],[2018,467200000],[2019,2395000000],[2020,151700000],[2021,1000000000],[2022,195200000],[2023,254000000],[2024,243100000],[2025,240700000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 450000000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LH.US SharesStats.PercentInsiders = 0.349 percentage points; cache date 2026-10-16.

### What could break it

"Changes or disruption in services, supplies, or transportation provided by third parties have impacted" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm (filed 2026-02-24); Changes or disruption in services, supplies, or transportation provided by third parties have impacted

### What the price says

The price assumes cash profits grow 8.5% yearly over ten years; actual growth was 9.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.1094426096460811. Price 325.07; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.4560950448511685 → FY2025 13.402147971360382. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $125.34 per share

- 2016-11: $125.85 per share

- 2016-12: $128.37 per share

- 2017-01: $134.20 per share

- 2017-02: $142.25 per share

- 2017-03: $143.46 per share

- 2017-04: $140.14 per share

- 2017-05: $138.99 per share

- 2017-06: $154.13 per share

- 2017-07: $158.90 per share

- 2017-08: $156.86 per share

- 2017-09: $150.96 per share

- 2017-10: $153.70 per share

- 2017-11: $158.26 per share

- 2017-12: $159.50 per share

- 2018-01: $174.49 per share

- 2018-02: $172.69 per share

- 2018-03: $161.74 per share

- 2018-04: $170.74 per share

- 2018-05: $180.58 per share

- 2018-06: $179.52 per share

- 2018-07: $175.33 per share

- 2018-08: $172.86 per share

- 2018-09: $173.67 per share

- 2018-10: $160.54 per share

- 2018-11: $145.63 per share

- 2018-12: $126.36 per share

- 2019-01: $139.34 per share

- 2019-02: $148.23 per share

- 2019-03: $152.97 per share

- 2019-04: $159.91 per share

- 2019-05: $162.60 per share

- 2019-06: $172.89 per share

- 2019-07: $167.51 per share

- 2019-08: $167.55 per share

- 2019-09: $167.99 per share

- 2019-10: $164.76 per share

- 2019-11: $172.28 per share

- 2019-12: $169.16 per share

- 2020-01: $175.39 per share

- 2020-02: $175.68 per share

- 2020-03: $126.39 per share

- 2020-04: $164.44 per share

- 2020-05: $175.31 per share

- 2020-06: $166.10 per share

- 2020-07: $192.91 per share

- 2020-08: $175.74 per share

- 2020-09: $188.26 per share

- 2020-10: $199.76 per share

- 2020-11: $199.83 per share

- 2020-12: $203.54 per share

- 2021-01: $228.90 per share

- 2021-02: $239.90 per share

- 2021-03: $255.02 per share

- 2021-04: $265.86 per share

- 2021-05: $274.47 per share

- 2021-06: $275.84 per share

- 2021-07: $296.14 per share

- 2021-08: $303.37 per share

- 2021-09: $281.43 per share

- 2021-10: $287.01 per share

- 2021-11: $285.32 per share

- 2021-12: $314.20 per share

- 2022-01: $271.35 per share

- 2022-02: $271.25 per share

- 2022-03: $263.65 per share

- 2022-04: $240.27 per share

- 2022-05: $246.71 per share

- 2022-06: $234.35 per share

- 2022-07: $262.18 per share

- 2022-08: $225.26 per share

- 2022-09: $204.80 per share

- 2022-10: $221.85 per share

- 2022-11: $240.69 per share

- 2022-12: $235.47 per share

- 2023-01: $252.11 per share

- 2023-02: $239.35 per share

- 2023-03: $229.41 per share

- 2023-04: $226.70 per share

- 2023-05: $212.52 per share

- 2023-06: $241.32 per share

- 2023-07: $213.93 per share

- 2023-08: $208.10 per share

- 2023-09: $201.05 per share

- 2023-10: $199.73 per share

- 2023-11: $216.91 per share

- 2023-12: $227.29 per share

- 2024-01: $222.30 per share

- 2024-02: $215.83 per share

- 2024-03: $218.46 per share

- 2024-04: $201.37 per share

- 2024-05: $194.91 per share

- 2024-06: $203.51 per share

- 2024-07: $215.44 per share

- 2024-08: $229.89 per share

- 2024-09: $223.48 per share

- 2024-10: $228.27 per share

- 2024-11: $241.16 per share

- 2024-12: $229.32 per share

- 2025-01: $249.80 per share

- 2025-02: $251.04 per share

- 2025-03: $232.74 per share

- 2025-04: $241.01 per share

- 2025-05: $248.97 per share

- 2025-06: $262.51 per share

- 2025-07: $260.08 per share

- 2025-08: $277.99 per share

- 2025-09: $287.06 per share

- 2025-10: $253.96 per share

- 2025-11: $268.78 per share

- 2025-12: $250.88 per share

- 2026-01: $271.52 per share

- 2026-02: $289.12 per share

- 2026-03: $266.81 per share

- 2026-04: $256.80 per share

- 2026-05: $260.06 per share

- 2026-06: $280.00 per share

- 2026-07: $309.20 per share

- 2026-08: $332.66 per share

- 2026-09: $308.11 per share

- 2026-10: $325.07 per share

## Annual estimated value (USD per share)

- FY2016: low $87.73 per share, central $99.55 per share, high $115.29 per share

- FY2017: low $94.11 per share, central $106.96 per share, high $124.07 per share

- FY2018: low $98.32 per share, central $111.65 per share, high $129.39 per share

- FY2019: low $103.46 per share, central $117.60 per share, high $136.42 per share

- FY2020: low $160.82 per share, central $208.34 per share, high $242.21 per share

- FY2021: low $227.72 per share, central $292.45 per share, high $339.91 per share

- FY2022: low $160.14 per share, central $182.09 per share, high $211.32 per share

- FY2023: low $174.03 per share, central $197.56 per share, high $228.89 per share

- FY2024: low $204.40 per share, central $230.53 per share, high $265.31 per share

- FY2025: low $149.51 per share, central $169.71 per share, high $196.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:34.396Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/920148/000092014826000111/lh-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.