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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.14
LH's Cash to Debt is ranked lower than
54% of the 181 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 10.63 vs. LH: 0.14 )
LH' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.29
Current: 0.14

0.02
0.29
Equity to Asset 0.36
LH's Equity to Asset is ranked higher than
51% of the 167 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.68 vs. LH: 0.36 )
LH' s 10-Year Equity to Asset Range
Min: 0.14   Max: 0.63
Current: 0.36

0.14
0.63
Interest Coverage 10.27
LH's Interest Coverage is ranked higher than
53% of the 105 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 138.50 vs. LH: 10.27 )
LH' s 10-Year Interest Coverage Range
Min: 1.03   Max: 22.66
Current: 10.27

1.03
22.66
F-Score: 5
Z-Score: 3.16
M-Score: -2.58
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 17.06
LH's Operating margin (%) is ranked higher than
90% of the 174 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.31 vs. LH: 17.06 )
LH' s 10-Year Operating margin (%) Range
Min: -4.39   Max: 19.94
Current: 17.06

-4.39
19.94
Net-margin (%) 9.88
LH's Net-margin (%) is ranked higher than
87% of the 174 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.95 vs. LH: 9.88 )
LH' s 10-Year Net-margin (%) Range
Min: -9.16   Max: 12.02
Current: 9.88

-9.16
12.02
ROE (%) 23.03
LH's ROE (%) is ranked higher than
96% of the 169 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.30 vs. LH: 23.03 )
LH' s 10-Year ROE (%) Range
Min: -59.47   Max: 27.64
Current: 23.03

-59.47
27.64
ROA (%) 8.24
LH's ROA (%) is ranked higher than
86% of the 180 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.07 vs. LH: 8.24 )
LH' s 10-Year ROA (%) Range
Min: -8.01   Max: 11.23
Current: 8.24

-8.01
11.23
ROC (Joel Greenblatt) (%) 89.18
LH's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 179 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 5.52 vs. LH: 89.18 )
LH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -12.32   Max: 136.29
Current: 89.18

-12.32
136.29
Revenue Growth (%) 10.00
LH's Revenue Growth (%) is ranked higher than
81% of the 134 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 7.90 vs. LH: 10.00 )
LH' s 10-Year Revenue Growth (%) Range
Min: -21.4   Max: 20
Current: 10

-21.4
20
EBITDA Growth (%) 6.30
LH's EBITDA Growth (%) is ranked higher than
74% of the 114 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 6.00 vs. LH: 6.30 )
LH' s 10-Year EBITDA Growth (%) Range
Min: -8.3   Max: 17.6
Current: 6.3

-8.3
17.6
EPS Growth (%) 5.60
LH's EPS Growth (%) is ranked higher than
76% of the 110 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.30 vs. LH: 5.60 )
LH' s 10-Year EPS Growth (%) Range
Min: 5.6   Max: 82.8
Current: 5.6

5.6
82.8
» LH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

LH Guru Trades in Q1 2013

Charles Brandes 117,076 sh (New)
Jim Simons 159,500 sh (New)
Chris Davis 4,160,386 sh (+649.86%)
Richard Pzena 2,306,707 sh (+185.13%)
Ray Dalio 72,898 sh (+24.96%)
Wallace Weitz 612,850 sh (+4.79%)
Westport Asset Management 150,000 sh (unchged)
Mario Gabelli 4,000 sh (unchged)
John Hussman Sold Out
Mark Hillman Sold Out
Vanguard Health Care Fund Sold Out
Jeremy Grantham 2,568,678 sh (-0.19%)
Scott Black 8,301 sh (-0.61%)
Joel Greenblatt 30,558 sh (-28.57%)
» More
Q2 2013

LH Guru Trades in Q2 2013

Mark Hillman 11,226 sh (New)
Chris Davis 5,883,020 sh (+41.41%)
Jim Simons 213,929 sh (+34.12%)
Mario Gabelli 4,170 sh (+4.25%)
Westport Asset Management 150,000 sh (unchged)
Wallace Weitz 612,550 sh (-0.05%)
Scott Black 8,281 sh (-0.24%)
Charles Brandes 116,416 sh (-0.56%)
Richard Pzena 2,268,529 sh (-1.66%)
Joel Greenblatt 25,093 sh (-17.88%)
Jeremy Grantham 1,875,004 sh (-27.01%)
Ray Dalio 27,900 sh (-61.73%)
» More
Q3 2013

LH Guru Trades in Q3 2013

Steven Cohen 4,584 sh (New)
Jim Simons 368,900 sh (+72.44%)
Chris Davis 7,894,873 sh (+34.2%)
Ray Dalio 35,817 sh (+28.38%)
Wallace Weitz 680,480 sh (+11.09%)
Joel Greenblatt 26,808 sh (+6.83%)
Charles Brandes 123,632 sh (+6.2%)
Richard Pzena 2,309,603 sh (+1.81%)
Scott Black 8,288 sh (+0.08%)
Mario Gabelli 4,170 sh (unchged)
Westport Asset Management 150,000 sh (unchged)
Jeremy Grantham 1,266,248 sh (-32.47%)
Mark Hillman 7,226 sh (-35.63%)
» More
Q4 2013

LH Guru Trades in Q4 2013

First Pacific Advisors 84,500 sh (New)
John Hussman 200,000 sh (New)
Paul Tudor Jones 3,800 sh (New)
Scott Black 102,325 sh (+1134.62%)
Joel Greenblatt 140,973 sh (+425.86%)
Steven Cohen 18,012 sh (+292.93%)
Wallace Weitz 903,010 sh (+32.7%)
Chris Davis 9,561,830 sh (+21.11%)
Charles Brandes 144,040 sh (+16.51%)
Richard Pzena 2,405,081 sh (+4.13%)
Mark Hillman 7,339 sh (+1.56%)
Westport Asset Management 150,000 sh (unchged)
Mario Gabelli 4,170 sh (unchged)
Ray Dalio Sold Out
Jim Simons Sold Out
Jeremy Grantham 1,115,269 sh (-11.92%)
» More
» Details

Insider Trades

Latest Guru Trades with LH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2013-12-31 New Buy1.3%$87.75 - $107.39 $ 101.953%200000
Scott Black 2013-12-31 Add 1134.62%0.92%$87.75 - $107.39 $ 101.953%102325
Wallace Weitz 2013-12-31 Add 32.7%0.69%$87.75 - $107.39 $ 101.953%903010
Joel Greenblatt 2013-12-31 Add 425.86%0.25%$87.75 - $107.39 $ 101.953%140973
Ray Dalio 2013-12-31 Sold Out 0.03%$87.75 - $107.39 $ 101.953%0
Wallace Weitz 2013-09-30 Add 11.09%0.25%$95.72 - $101.39 $ 101.954%680480
Ray Dalio 2013-09-30 Add 28.38%0.01%$95.72 - $101.39 $ 101.954%35817
Ray Dalio 2013-06-30 Reduce -61.73%0.04%$90.63 - $100.96 $ 101.956%27900
Vanguard Health Care Fund 2013-03-31 Sold Out 0.59%$86.41 - $91.63 $ 101.9515%0
John Hussman 2013-03-31 Sold Out 0.42%$86.41 - $91.63 $ 101.9515%0
Charles Brandes 2013-03-31 New Buy0.12%$86.41 - $91.63 $ 101.9515%117076
Wallace Weitz 2013-03-31 Add 4.79%0.11%$86.41 - $91.63 $ 101.9515%612850
Joel Greenblatt 2013-03-31 Reduce -28.57%0.06%$86.41 - $91.63 $ 101.9515%30558
Ray Dalio 2013-03-31 Add 24.96%0.01%$86.41 - $91.63 $ 101.9515%72898
Premium More recent guru trades are included for Premium Members only!!
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Top Ranked Articles about Laboratory Corporation of America Holdings

GuruFocus Real Time Picks of the Week
The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. This week we saw notable increases in Real Time activity from Seth Klarman (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio) and Chris Davis (Trades, Read more...
Davis Funds Buys UnitedHealth, Liberty Global, Air Products & Chemicals, SINA
Value shop Davis Funds just their second quarter portfolio. The firm has been run by Davis family for three generations. Its flagship fund Davis New York Venture Fund, run by Chris Davis and Ken Feinberg, averaged 6% a year in the last 10 years. The managers said in a recent interview that they are still seeing a lot of opportunities. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.20
LH's P/E(ttm) is ranked higher than
82% of the 92 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 25.50 vs. LH: 16.20 )
LH' s 10-Year P/E(ttm) Range
Min: 12.98   Max: 24.73
Current: 16.2

12.98
24.73
P/B 3.50
LH's P/B is ranked higher than
59% of the 155 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.68 vs. LH: 3.50 )
LH' s 10-Year P/B Range
Min: 2.3   Max: 5.41
Current: 3.5

2.3
5.41
P/S 1.61
LH's P/S is ranked higher than
77% of the 172 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.63 vs. LH: 1.61 )
LH' s 10-Year P/S Range
Min: 1.33   Max: 2.97
Current: 1.61

1.33
2.97
PFCF 15.00
LH's PFCF is ranked higher than
76% of the 80 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 20.36 vs. LH: 15.00 )
LH' s 10-Year PFCF Range
Min: 9.05   Max: 20.72
Current: 15

9.05
20.72
EV-to-EBIT 11.50
LH's EV-to-EBIT is ranked higher than
79% of the 122 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 21.08 vs. LH: 11.50 )
LH' s 10-Year EV-to-EBIT Range
Min: 8.7   Max: 16.2
Current: 11.5

8.7
16.2
PEG 2.40
LH's PEG is ranked higher than
65% of the 52 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.56 vs. LH: 2.40 )
LH' s 10-Year PEG Range
Min: 0.82   Max: 166.25
Current: 2.4

0.82
166.25
Shiller P/E 18.30
LH's Shiller P/E is ranked higher than
88% of the 52 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 34.50 vs. LH: 18.30 )
LH' s 10-Year Shiller P/E Range
Min: 15.97   Max: 262.67
Current: 18.3

15.97
262.67

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.80
LH's Price/DCF (Projected) is ranked higher than
94% of the 80 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.70 vs. LH: 0.80 )
LH' s 10-Year Price/DCF (Projected) Range
Min: 0.72   Max: 6.11
Current: 0.8

0.72
6.11
Price/Median PS Value 0.90
LH's Price/Median PS Value is ranked higher than
75% of the 159 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.10 vs. LH: 0.90 )
LH' s 10-Year Price/Median PS Value Range
Min: 0.07   Max: 1.5
Current: 0.9

0.07
1.5
Price/Peter Lynch Fair Value 2.20
LH's Price/Peter Lynch Fair Value is ranked higher than
69% of the 36 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.20 vs. LH: 2.20 )
LH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.95   Max: 3.83
Current: 2.2

0.95
3.83
Earnings Yield (Greenblatt) 8.70
LH's Earnings Yield (Greenblatt) is ranked higher than
77% of the 120 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.70 vs. LH: 8.70 )
LH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.2   Max: 11.5
Current: 8.7

6.2
11.5
Forward Rate of Return (Yacktman) 13.02
LH's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 138 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.42 vs. LH: 13.02 )
LH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.5   Max: 22.8
Current: 13.02

4.5
22.8

Business Description

Industry: Medical Diagnostics & Research » Diagnostics & Research
Compare:ALR, DGX, LIFE, ENZ, IDXX » details
Traded in other countries:LAB.Germany
Laboratory Corporation of America Holdings is an independent clinical laboratory company in the United States. Since the Company's founding in 1971, it has grown into a national network of 54 primary laboratories and over 1,700 patient service centers along with a network of branches and STAT laboratories (which are laboratories that have the ability to perform certain routine tests quickly and report the results to the physician immediately). Through its national network of laboratories, the Company offers a broad range of clinical laboratory tests that are used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease. In addition, the Company has developed testing operations, such as oncology testing, HIV genotyping and phenotyping, diagnostic genetics and clinical trials. Laboratory tests and procedures are used generally by hospitals, physicians and other health care providers and commercial clients to assist in the diagnosis, evaluation, detection, therapy selection, monitoring and treatment of diseases and other medical conditions through the examination of substances in the blood, tissues and other specimens. The Company believes that it competes favorably with its principal competitors in each of these areas and is currently implementing strategies designed to improve its competitive position. The Company's strategic plan continues to focus on three critical priorities: scientific differentiation, managed care, and customer service. The Company offers its services through a sales force focused on serving the specific needs of customers in different market segments. These market segments generally include Specialty Cancer, Hospitals and Primary Care. The Company is subject to licensing and regulation under federal, state and local laws and regulations relating to the protection of the environment and human health and safety and laws and regulations relating to the handling, transportation and disposal of medical specimens, infectious and hazardous waste and radioactive materials.

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