Labcorp Holdings Inc.
$258.92
+0.47%Labcorp Holdings, Inc. provides laboratory services to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 24.6).
Valuation inputs: P/E 24.6, earnings yield +4.1%, momentum +0.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +10.2%, ROIC +7.4%).
Profitability stack: net margin +6.3%, ROE +10.2%, ROIC +7.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +53.0%, momentum +0.5%, net margin +6.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Labcorp Holdings Inc. Market vs Earnings Trajectory
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Labcorp Holdings Inc. Fair Value Envelope
Labcorp Holdings Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Labcorp Holdings Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Labcorp Holdings Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Labcorp Holdings Inc. Street Expectations Map
Wall Street analysts project that LH stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 311.33, with estimates ranging from a low of 300.00 to a high of 334.00.
The consensus 1-year price target stands at 311.33, with estimates ranging from a low of 300.00 to a high of 334.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Labcorp Holdings Inc. Insider Positioning
During the last 12 months, insiders have sold $14.60M worth of LH shares, with no buying activity reported.
3 Months
0
0.00
8.4K
2.16M
-2.2M
-$2.16M
3-6 Months
0
0.00
17.0K
4.78M
-4.8M
-$4.78M
6-9 Months
0
0.00
12.8K
3.29M
-3.3M
-$3.29M
9-12 Months
0
0.00
16.1K
4.36M
-4.4M
-$4.36M
Top Buyers
No buying activity
Top Sellers
Schechter Adam H
Director, Officer: President & Ceo
$8.45M
Parham Richelle P
Director
$1.78M
Anderson Kerrii B
Director
$1.24M
Van Der Vaart Sandra D
Officer: Evp, Corporate Affairs
$1.22M
Wilkinson Peter J
Officer: Svp, Chief Accounting Officer
$647K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $14.60M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
lh Dividend History
Learning Layer
Related Guides
Build conviction on LH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.