NYSE · Healthcare

Labcorp Holdings Inc.

LH · Diagnostics & Research

$255.82

▼ -3.74 (-1.44%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 28.7%

Operating Margin 10.9%

Net Income Margin 7.9%

Fin. Health

D⤢

Years to Pay Off Debt 26.1 yrs

Working Capital vs Long-Term Debt -$3.9B

Working Capital $1.9B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.40x

Cash Flow

C⤢

Free Cash Flow $70M

CapEx % of Net Income 43.6%

Owner Earnings $572M

Profitability

Gross Profit Margin 28.7%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 10.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 7.9%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 26.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$3.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.9B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $70M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 43.6%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $572M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Labcorp Holdings Inc.

Labcorp Holdings Inc. provides laboratory services. It operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services. 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 services, 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, the company 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. The company has a strategic collaboration with the Children's Hospital of Philadelphia to accelerate the discovery, development, and availability of pediatric diagnostics. It also has a collaboration with Alliance for Clinical Trials in Oncology to advance national clinical trial for patients diagnosed with colorectal cancer. The company was founded in 1995 and is headquartered in Burlington, North Carolina.

Market Data

Market Cap $21.0B

Enterprise Value $28.0B

P/E (TTM) 22.68

Dividend Yield 1.11%

Exchange NYSE

Key Margins

Gross Profit 28.7%

Operating Margin 10.9%

Net Margin 7.9%

Company Info

Sector Healthcare

Industry Diagnostics & Research

Employees 71000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Labcorp Holdings Inc. at $255.82.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $255.82, the stock trades at a 186% premium to its Graham Number of $89.57. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	28.7%▲	28.2%•	N/A
Operating Margin %	10.9%▲	10.9%•	N/A
Net Income %	7.9%▲	4.7%•	N/A
Diluted EPS	3.35▲	1.98•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$19.1B	$18.4B	N/A
Total Debt	$7.2B▲	$6.5B•	N/A
Working Capital	$1.9B▲	$1.2B•	N/A
Years to Pay Debt	26.06	39.62	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$70M▼	$490M•	N/A
Owner Earnings	$572M	$462M	N/A
CapEx % of Net Income	43.6%	75.2%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	760	-14,953
Tax Rate For Calcs	0	0
Normalized EBITDA	542,300	529,500
Total Unusual Items	5,800	-110,900
Total Unusual Items Excluding Goodwill	5,800	-110,900
Net Income From Continuing Operation Net Minority Interest	277,800	164,700
Reconciled Depreciation	173,300	173,000
Reconciled Cost Of Revenue	2,426,100	2,422,200
EBITDA	548,100	418,600
EBIT	374,800	245,600
Net Interest Income	-55,100	-55,000
Interest Expense	55,100	55,000
Normalized Income	272,760	260,647
Net Income From Continuing And Discontinued Operation	277,800	164,700
Total Expenses	3,150,400	3,133,800
Total Operating Income As Reported	380,800	267,600
Diluted Average Shares	82,900	83,200
Basic Average Shares	82,300	82,500
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	277,800	164,700
Net Income Common Stockholders	277,800	164,700
Net Income	277,800	164,700
Minority Interests	-200	-200
Net Income Including Noncontrolling Interests	278,000	164,900
Net Income Continuous Operations	278,000	164,900
Tax Provision	41,700	25,700
Pretax Income	319,700	190,600
Other Income Expense	-12,400	-136,400
Other Non Operating Income Expenses	-13,100	-19,400
Special Income Charges	-6,400	-114,400
Impairment Of Capital Assets		3,600	2,800
Restructuring And Mergern Acquisition	6,400	110,800
Earnings From Equity Interest	-5,100	-6,100
Gain On Sale Of Security	12,200	3,500
Net Non Operating Interest Income Expense	-55,100	-55,000
Interest Expense Non Operating	55,100	55,000
Operating Income	387,200	382,000
Operating Expense	626,600	611,200
Depreciation Amortization Depletion Income Statement	75,600	72,600
Depreciation And Amortization In Income Statement	75,600	72,600
Amortization	75,600	72,600
Amortization Of Intangibles Income Statement	75,600	72,600
Selling General And Administration	551,000	538,600
Gross Profit	1,013,800	993,200
Cost Of Revenue	2,523,800	2,522,600
Total Revenue	3,537,600	3,515,800
Operating Revenue	3,537,600	3,538,800

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	82,300	82,200
Share Issued	82,300	82,200
Net Debt	5,353,000	5,052,400
Total Debt	7,240,600	6,526,000
Tangible Book Value	-1,862,700	-1,765,700
Invested Capital	15,062,700	14,204,500
Working Capital	1,917,800	1,197,000
Net Tangible Assets	-1,862,700	-1,765,700
Capital Lease Obligations	906,500	941,300
Common Stock Equity	8,728,600	8,619,800
Total Capitalization	14,562,300	13,704,400
Total Equity Gross Minority Interest	8,745,500	8,636,700
Minority Interest	16,900	16,900
Stockholders Equity	8,728,600	8,619,800
Gains Losses Not Affecting Retained Earnings	-63,200	-27,600
Other Equity Adjustments	-63,200	-27,600
Retained Earnings	8,784,400	8,639,900
Additional Paid In Capital	0	0
Capital Stock	7,400	7,500
Common Stock	7,400	7,500
Total Liabilities Net Minority Interest	10,341,600	9,756,000
Total Non Current Liabilities Net Minority Interest	7,700,600	6,932,500
Other Non Current Liabilities	691,800	112,100
Derivative Product Liabilities		274,000	142,700
Employee Benefits		111,200	106,000
Non Current Deferred Liabilities	456,400	605,000
Non Current Deferred Taxes Liabilities	456,400	454,500
Long Term Debt And Capital Lease Obligation	6,552,400	5,830,200
Long Term Capital Lease Obligation	718,700	745,600
Long Term Debt	5,833,700	5,084,600
Current Liabilities	2,641,000	2,823,500
Current Deferred Liabilities	405,200	439,100
Current Deferred Revenue	405,200	439,100
Current Debt And Capital Lease Obligation	688,200	695,800
Current Capital Lease Obligation	187,800	195,700
Current Debt	500,400	500,100
Other Current Borrowings	400	300
Current Notes Payable	500,000	499,800
Pensionand Other Post Retirement Benefit Plans Current		423,900	495,400
Payables And Accrued Expenses	1,547,600	1,264,700
Current Accrued Expenses	851,900	263,600
Payables	695,700	1,001,100
Total Tax Payable		160,300	152,700
Accounts Payable	695,700	840,800
Total Assets	19,087,100	18,392,700
Total Non Current Assets	14,528,300	14,372,200
Other Non Current Assets	724,900	751,300
Investments And Advances	146,600	153,900
Long Term Equity Investment	146,600	153,900
Goodwill And Other Intangible Assets	10,591,300	10,385,500
Other Intangible Assets	3,636,100	3,596,000
Goodwill	6,955,200	6,789,500
Net PPE	3,065,500	3,081,500
Accumulated Depreciation		-3,270,100	-3,071,000
Gross PPE		6,351,600	6,116,400
Leases		577,900	550,600
Construction In Progress		381,500	333,400
Other Properties		803,900	784,500
Machinery Furniture Equipment		3,329,200	3,237,200
Buildings And Improvements		1,171,600	1,098,400
Land And Improvements		87,500	112,300
Current Assets	4,558,800	4,020,500
Other Current Assets	629,500	692,800
Inventory	497,700	534,700
Raw Materials	497,700	534,700
Receivables	2,450,500	2,260,700
Other Receivables	161,900	156,900
Accounts Receivable	2,288,600	2,103,800
Allowance For Doubtful Accounts Receivable	-33,000	-36,400
Gross Accounts Receivable	2,321,600	2,140,200
Cash Cash Equivalents And Short Term Investments	981,100	532,300
Cash And Cash Equivalents	981,100	532,300

Cash Flow

	2026	2025	2024
Free Cash Flow	70,500	490,300
Repurchase Of Capital Stock	-98,000	-225,000
Repayment Of Debt	0	0
Issuance Of Debt	750,000	0
Capital Expenditure	-121,000	-123,900
Interest Paid Supplemental Data	45,200	700
Income Tax Paid Supplemental Data	13,100	11,400
End Cash Position	981,100	532,300
Beginning Cash Position	532,300	598,100
Effect Of Exchange Rate Changes	-1,100	300
Changes In Cash	449,900	-66,100
Financing Cash Flow	580,500	-290,400
Cash Flow From Continuing Financing Activities	580,500	-290,400
Net Other Financing Charges	-43,200	-6,100
Proceeds From Stock Option Exercised	32,900	0
Cash Dividends Paid	-61,200	-59,300
Common Stock Dividend Paid	-61,200	-59,300
Net Common Stock Issuance	-98,000	-225,000
Common Stock Payments	-98,000	-225,000
Net Issuance Payments Of Debt	750,000	0
Net Long Term Debt Issuance	750,000	0
Long Term Debt Payments	0	0
Long Term Debt Issuance	750,000	0
Investing Cash Flow	-322,100	-389,900
Cash Flow From Continuing Investing Activities	-322,100	-389,900
Net Other Investing Changes	7,800	4,500
Net Investment Purchase And Sale			-55,000
Net Business Purchase And Sale	-208,900	-78,100
Sale Of Business		0	1,600
Purchase Of Business	-208,900	-78,100
Capital Expenditure Reported	-121,000	-123,900
Operating Cash Flow	191,500	614,200
Cash Flow From Continuing Operating Activities	191,500	614,200
Change In Working Capital	-352,900	42,500
Change In Other Working Capital	-32,100	47,200
Change In Payables And Accrued Expense	-166,100	44,300
Change In Accrued Expense	-27,400	-107,300
Change In Payable	-138,700	151,600
Change In Account Payable	-138,700	151,600
Change In Prepaid Assets	4,000	-41,000
Change In Inventory	35,400	-12,300
Change In Receivables	-194,100	4,300
Changes In Account Receivables	-187,900	4,900
Other Non Cash Items	59,400	179,300
Stock Based Compensation	31,700	29,700
Asset Impairment Charge		3,600	2,800
Deferred Tax	2,000	21,200
Deferred Income Tax	2,000	21,200
Depreciation Amortization Depletion	173,300	173,000
Depreciation And Amortization	173,300	173,000
Net Income From Continuing Operations	278,000	164,900

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $3.3B ▲ $3.5B +5.8%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 28.3% ▲ 28.7% +0.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 11.6% ▲ 10.9% -0.6pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 6.4% ▲ 7.9% +1.5pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$3.5B/qtr (≈$14.2B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.73x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$70M

vs Positive

Operating Cash Flow

$192M

Latest quarter · Buffett's cash reality check

ROIC

1.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.4x

Net Assets: $8.7B

Asset Context — Diagnostics & Research

R&D costs are expensed immediately under GAAP rather than capitalised as assets, meaning a pharma/biotech company's most valuable assets (drug pipeline, patents) are largely invisible on the balance sheet. Net Assets significantly understates true economic value. Pipeline depth and revenue diversification matter more.

Peers & Industry

No auto-detected peers for Diagnostics & Research. You can manually compare LH against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.35%

Low — management has little skin in the game

Return on Equity (ROE)

3.2%

Weak — poor returns on equity

Return on Assets (ROA)

1.5%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$450M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+11.0% YoY

Debt is growing — management is leveraging up

Leadership Team

Adam Schechter

President, CEO & Chairman

Age 60

Pay: $4,184,868

1.506% of net income

Julia Wang

CFO & Executive VP

Age 53

Pay: $1,684,514

0.606% of net income

Brian Caveney , ,

EVP, President of Early Development Research Laboratories and Chief Medical & Scientific Officer

Age 51

Pay: $1,493,883

0.538% of net income

Megan Bailey

Executive VP and President of Central Laboratory Services & International Labcorp

Age 45

Pay: $1,150,873

0.414% of net income

Christin O'Donnell

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.86%	6,444,856
Vanguard Capital Management LLC	6.56%	5,376,120
Victory Capital Management Inc.	5.64%	4,627,126
State Street Corporation	4.71%	3,863,171
Vanguard Portfolio Management LLC	4.49%	3,680,661
Boston Partners	2.89%	2,368,796
Allspring Global Investments Holdings, LLC	2.72%	2,226,446
Geode Capital Management, LLC	2.67%	2,185,942

Risk Analysis

Beta (Market Risk)

0.88

Low volatility — more stable than the market

Short Interest

4.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.83x

Conservative balance sheet — low financial risk

Current Ratio

1.73x

Adequate liquidity

52-Week Price Range

Low: $241.81 Current: $255.82 High: $293.72

Currently at 27% of 52-week range

Labcorp Holdings Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis