Laboratory Corporation of America Holdings
NYSE:LH
Intrinsic Value
Laboratory Corp. of America Holdings operates as a life sciences company, which engages in the provision of vital information to help health professionals make clear and confident decisions. [ Read More ]
The intrinsic value of one LH stock under the Base Case scenario is 226.61 USD. Compared to the current market price of 216.57 USD, Laboratory Corporation of America Holdings is Undervalued by 4%.
Valuation Backtest
Laboratory Corporation of America Holdings
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Fundamental Analysis
Company Forecasts Revenue Growth Despite Challenges
2023-Q4 Earnings Call
The company posted a quarter revenue of $2.3 billion, a marginal 2.6% rise from the previous year, attributed to 0.8% organic growth and 1.8% through acquisitions. Despite a steep 73% drop in COVID testing revenue, the Base Business saw organic growth of 5.7%. Diagnostic operating income fell to $354 million from $387 million, largely due to the lower COVID testing, while the Biopharma segment's income improved to $109 million. Looking ahead, the company anticipates Enterprise revenue growth of 4.7% to 6.5% for 2024, driven by expectations of free cash flow redeployment into acquisitions, share buybacks, and dividends.
Balance Sheet Decomposition
Laboratory Corporation of America Holdings
Current Assets | 3.8B |
Cash & Short-Term Investments | 536.8m |
Receivables | 2.1B |
Other Current Assets | 1.1B |
Non-Current Assets | 13B |
Long-Term Investments | 26.9m |
PP&E | 2.9B |
Intangibles | 9.5B |
Other Non-Current Assets | 536.5m |
Current Liabilities | 3.2B |
Accounts Payable | 827.5m |
Accrued Liabilities | 969.8m |
Other Current Liabilities | 1.4B |
Non-Current Liabilities | 5.6B |
Long-Term Debt | 4.1B |
Other Non-Current Liabilities | 1.5B |
Earnings Waterfall
Laboratory Corporation of America Holdings
Revenue
|
12.2B
USD
|
Cost of Revenue
|
-8.8B
USD
|
Gross Profit
|
3.4B
USD
|
Operating Expenses
|
-2.2B
USD
|
Operating Income
|
1.1B
USD
|
Other Expenses
|
-705.7m
USD
|
Net Income
|
418m
USD
|
Free Cash Flow Analysis
Laboratory Corporation of America Holdings
What is Free Cash Flow?
LH Profitability Score
Profitability Due Diligence
Laboratory Corporation of America Holdings's profitability score is 51/100. The higher the profitability score, the more profitable the company is.
Score
Laboratory Corporation of America Holdings's profitability score is 51/100. The higher the profitability score, the more profitable the company is.
LH Solvency Score
Solvency Due Diligence
Laboratory Corporation of America Holdings's solvency score is 46/100. The higher the solvency score, the more solvent the company is.
Score
Laboratory Corporation of America Holdings's solvency score is 46/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
LH Price Targets Summary
Laboratory Corporation of America Holdings
According to Wall Street analysts, the average 1-year price target for LH is 251.94 USD with a low forecast of 222.2 USD and a high forecast of 283.5 USD.
Ownership
LH Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
LH Price
Laboratory Corporation of America Holdings
Average Annual Return | 14.87% |
Standard Deviation of Annual Returns | 27.06% |
Max Drawdown | -47% |
Market Capitalization | 18.2B USD |
Shares Outstanding | 84 100 000 |
Percentage of Shares Shorted | 3.44% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Laboratory Corp. of America Holdings operates as a life sciences company, which engages in the provision of vital information to help health professionals make clear and confident decisions. The company is headquartered in Burlington, North Carolina and currently employs 75,500 full-time employees. The Company’s business segments include Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). Through its Dx and DD segments, the Company provides diagnostic, drug development and technology enabled solutions. The firm also supports clinical trial activity in approximately 100 countries through its industry central laboratory, preclinical, and clinical development businesses. Dx segment operates through a network of patient service centers, branches, rapid response laboratories, primary laboratories, and specialty laboratories. DD segment, which operates on a global scale. The firm serves a range of customers, including doctors, hospitals, pharmaceutical companies, researchers, governmental agencies, physicians and other healthcare providers. The company also helps in delivering non-clinical testing services.
Contact
IPO
Employees
Officers
The intrinsic value of one LH stock under the Base Case scenario is 226.61 USD.
Compared to the current market price of 216.57 USD, Laboratory Corporation of America Holdings is Undervalued by 4%.