Skip to Content

Laboratory Corp of America Holdings LH

Morningstar Rating
$216.60 −1.03 (0.47%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

Price vs Fair Value

LH is trading at a 7% discount.
Price
$216.60
Fair Value
$897.00
Uncertainty
Medium
1-Star Price
$961.67
5-Star Price
$493.70
Economic Moat
Vvtvxm
Capital Allocation
Fwmfnlxbqg

Bulls Say, Bears Say

Bulls

Now that commercial payers are moving away from exclusive contracts with the large independent labs, we think the prospect of cutthroat pricing competition has eased.

Bears

If significant numbers of hospital-based labs are ill-equipped to comply with Medicare's payment reporting requirements, then reimbursement pressure could increase even more in 2024-26.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if LH is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$217.63
Day Range
$215.68217.62
52-Week Range
$195.01258.90
Bid/Ask
$0.00 / $236.38
Market Cap
$18.39 Bil
Volume/Avg
508,685 / 812,143

Key Statistics

Price/Earnings (Normalized)
14.66
Price/Sales
1.50
Dividend Yield
1.33%
Dividend Yield (Forward)
1.33%
Total Yield
8.15%

Company Profile

Laboratory Corp. of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Mid Value
Total Number of Employees
80,000

Competitors

Valuation

Metric
LH
MYGN
DGX
Price/Earnings (Normalized)
14.6615.91
Price/Book Value
2.342.222.37
Price/Sales
1.502.061.67
Price/Cash Flow
10.1911.90
Price/Earnings
LH
MYGN
DGX

Financial Strength

Metric
LH
MYGN
DGX
Quick Ratio
0.960.960.88
Current Ratio
1.361.271.12
Interest Coverage
6.35−97.217.49
Quick Ratio
LH
MYGN
DGX

Profitability

Metric
LH
MYGN
DGX
Return on Assets (Normalized)
6.72%−3.03%7.44%
Return on Equity (Normalized)
13.51%−4.41%15.85%
Return on Invested Capital (Normalized)
9.13%−3.64%9.88%
Return on Assets
LH
MYGN
DGX

Diagnostics & Research Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TMO
Thermo Fisher Scientific IncCqff$189.2 Bil
DHR
Danaher CorpDprqp$160.7 Bil
IDXX
IDEXX Laboratories IncKyrph$44.1 Bil
IQV
IQVIA Holdings IncDlczh$39.3 Bil
A
Agilent Technologies IncZdw$37.2 Bil
MTD
Mettler-Toledo International IncYzdsj$23.6 Bil
ICLR
Icon PLCDsjbb$22.4 Bil
ILMN
Illumina IncWbgygd$17.9 Bil
WAT
Waters CorpSthw$17.3 Bil