Labcorp Holdings Inc. (LH)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Labcorp as a Graham-style bargain hunter: the business is understandable, essential, and reasonably durable. It runs diagnostic laboratories and biopharma lab services, employing 71,000 people. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.7B, net income $298.7M, and diluted EPS $3.64; a year earlier in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $237.9M and diluted EPS $2.84. For FY2025, the year ended 2025-12-31, revenue was $14.0B, net income $876.5M, and diluted EPS $10.46, up from $13.0B, $746.0M, and $8.84 in FY2024. So recent filings show recovery. Yet FairStock's Lynch category calls it a SLOW GROWER — Shrinking: profit -10.8% a year over five years, revenue -0.0%. The moat from scale and testing volume is real but not impregnable; FairStock calculates ROCE at 5.53% and ROE at 11.73%; debt-to-equity is 0.79. At the 2026-10-13 close of $313.64, FairStock calculates P/E 25.94, P/B 2.95, FCF yield 4.5%, Graham Number $170.12, and margin of safety -84.36%. Piotroski 9/9 is a bright spot, and Altman Z 2.59 is acceptable but not fortress-like. The dividend yield is only 0.90%, so total return depends heavily on earnings growth and multiple re-rating. I would want a larger discount before calling this a Graham bargain; the price already assumes improved growth.

In plain English: Labcorp runs medical testing laboratories and lab services for drug companies. The business is profitable and recent quarterly results improved, but long-term growth has been slow and the stock price looks high compared with its accounting value and cash flow. Based on the numbers given, the shares appear expensive rather than cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer