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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 : 8/10

vs
industry
vs
history
Cash to Debt 0.19
LH's Cash to Debt is ranked lower than
52% of the 294 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.82 vs. LH: 0.19 )
LH' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.29
Current: 0.19

0.02
0.29
Equity to Asset 0.39
LH's Equity to Asset is ranked higher than
56% of the 279 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.62 vs. LH: 0.39 )
LH' s 10-Year Equity to Asset Range
Min: 0.14   Max: 0.63
Current: 0.39

0.14
0.63
Interest Coverage 8.31
LH's Interest Coverage is ranked higher than
54% of the 154 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 178.70 vs. LH: 8.31 )
LH' s 10-Year Interest Coverage Range
Min: 1.03   Max: 22.66
Current: 8.31

1.03
22.66
F-Score: 6
Z-Score: 3.77
M-Score: -2.59
WACC vs ROIC
5.81%
10.90%
WACC
ROIC
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 (%) 15.14
LH's Operating margin (%) is ranked higher than
91% of the 287 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.96 vs. LH: 15.14 )
LH' s 10-Year Operating margin (%) Range
Min: -4.39   Max: 19.94
Current: 15.14

-4.39
19.94
Net-margin (%) 8.50
LH's Net-margin (%) is ranked higher than
88% of the 287 Companies
in the Global Diagnostics & Research industry.

( Industry Median: -0.43 vs. LH: 8.50 )
LH' s 10-Year Net-margin (%) Range
Min: -9.16   Max: 12.02
Current: 8.5

-9.16
12.02
ROE (%) 19.30
LH's ROE (%) is ranked higher than
94% of the 272 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.49 vs. LH: 19.30 )
LH' s 10-Year ROE (%) Range
Min: -45.84   Max: 28.64
Current: 19.3

-45.84
28.64
ROA (%) 7.17
LH's ROA (%) is ranked higher than
88% of the 296 Companies
in the Global Diagnostics & Research industry.

( Industry Median: -1.00 vs. LH: 7.17 )
LH' s 10-Year ROA (%) Range
Min: -8.18   Max: 11.43
Current: 7.17

-8.18
11.43
ROC (Joel Greenblatt) (%) 76.53
LH's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 294 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.49 vs. LH: 76.53 )
LH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -10.63   Max: 137.1
Current: 76.53

-10.63
137.1
Revenue Growth (3Y)(%) 8.50
LH's Revenue Growth (3Y)(%) is ranked higher than
82% of the 211 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 6.20 vs. LH: 8.50 )
LH' s 10-Year Revenue Growth (3Y)(%) Range
Min: -21.4   Max: 20
Current: 8.5

-21.4
20
EBITDA Growth (3Y)(%) 5.50
LH's EBITDA Growth (3Y)(%) is ranked higher than
77% of the 197 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.70 vs. LH: 5.50 )
LH' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -8.3   Max: 17.6
Current: 5.5

-8.3
17.6
EPS Growth (3Y)(%) 5.00
LH's EPS Growth (3Y)(%) is ranked higher than
77% of the 188 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.40 vs. LH: 5.00 )
LH' s 10-Year EPS Growth (3Y)(%) Range
Min: 5   Max: 82.8
Current: 5

5
82.8
» LH's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2014

LH Guru Trades in Q1 2014

David Dreman 718 sh (New)
Larry Robbins 1,073,169 sh (New)
Jeff Auxier 4,780 sh (New)
John Rogers 1,027,635 sh (New)
Ray Dalio 8,032 sh (New)
Steven Cohen 40,037 sh (+122.28%)
Wallace Weitz 997,770 sh (+10.49%)
Charles Brandes 148,725 sh (+3.25%)
Chris Davis 9,638,047 sh (+0.80%)
First Pacific Advisors 84,500 sh (unchged)
Westport Asset Management 150,000 sh (unchged)
Paul Tudor Jones Sold Out
Scott Black 102,148 sh (-0.17%)
Mario Gabelli 4,000 sh (-4.08%)
Richard Pzena 2,256,910 sh (-6.16%)
Jeremy Grantham 966,113 sh (-13.37%)
Joel Greenblatt 59,243 sh (-57.98%)
John Hussman 62,900 sh (-68.55%)
» More
Q2 2014

LH Guru Trades in Q2 2014

Louis Moore Bacon 3,935 sh (New)
Tom Gayner 15,000 sh (New)
Paul Tudor Jones 7,020 sh (New)
Ray Dalio 31,466 sh (+291.76%)
John Rogers 1,087,739 sh (+5.85%)
Charles Brandes 154,198 sh (+3.68%)
Wallace Weitz 999,816 sh (+0.21%)
Mario Gabelli 4,000 sh (unchged)
First Pacific Advisors 84,500 sh (unchged)
John Hussman 62,900 sh (unchged)
Larry Robbins Sold Out
David Dreman Sold Out
Jeff Auxier 4,630 sh (-3.14%)
Westport Asset Management 140,000 sh (-6.67%)
Scott Black 79,092 sh (-22.57%)
Richard Pzena 1,654,529 sh (-26.69%)
Chris Davis 6,747,256 sh (-29.99%)
Jeremy Grantham 213,871 sh (-77.86%)
Joel Greenblatt 2,725 sh (-95.40%)
» More
Q3 2014

LH Guru Trades in Q3 2014

Jim Simons 238,200 sh (New)
Joel Greenblatt 317,530 sh (+11552.50%)
Ray Dalio 54,536 sh (+73.32%)
John Rogers 1,389,464 sh (+27.74%)
First Pacific Advisors 99,500 sh (+17.75%)
Charles Brandes 165,695 sh (+7.46%)
Mario Gabelli 4,000 sh (unchged)
John Hussman 62,900 sh (unchged)
Westport Asset Management 140,000 sh (unchged)
Jeff Auxier 4,630 sh (unchged)
Tom Gayner 15,000 sh (unchged)
Louis Moore Bacon Sold Out
Wallace Weitz 988,891 sh (-1.09%)
Richard Pzena 1,558,296 sh (-5.82%)
Chris Davis 5,989,780 sh (-11.23%)
Scott Black 69,949 sh (-11.56%)
Paul Tudor Jones 4,047 sh (-42.35%)
Jeremy Grantham 122,271 sh (-42.83%)
» More
Q4 2014

LH Guru Trades in Q4 2014

Louis Moore Bacon 50,000 sh (New)
Steven Cohen 123,800 sh (New)
Paul Tudor Jones 13,705 sh (+238.65%)
Jim Simons 597,100 sh (+150.67%)
Ray Dalio 70,036 sh (+28.42%)
Scott Black 74,051 sh (+5.86%)
Wallace Weitz 996,606 sh (+0.78%)
Mario Gabelli 4,000 sh (unchged)
Chris Davis 5,928,873 sh (unchged)
Tom Gayner Sold Out
Westport Asset Management Sold Out
John Hussman Sold Out
John Rogers 1,386,680 sh (-0.20%)
Chris Davis 5,928,873 sh (-1.02%)
Jeff Auxier 4,580 sh (-1.08%)
Joel Greenblatt 284,471 sh (-10.41%)
Jeremy Grantham 91,180 sh (-25.43%)
Charles Brandes 117,707 sh (-28.96%)
Richard Pzena 830,648 sh (-46.70%)
First Pacific Advisors 50,400 sh (-49.35%)
» More
» Details

Insider Trades

Latest Guru Trades with LH

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Laboratory Corp of America Hldgs

John Rogers Comments on Laboratory Corp. of America Holdings - May 07, 2014

We purchased a previous holding in our mid ca p fund, Laboratory Corp. of America Holdings (LH). LabCorp maintains a leading market position in an indust ry that continues to show promising growth potential du e to technological advances, aging demographics, health care cost containment, and preventative medicine. LabCorp maintains a solid balance sheet, generates a significant amount of free cash flow and has been returning value to shareholders through share repurchases. The company operates with an experienced management team that is conservative yet willing to take slight risks in order to grow the business long-term.



From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund first quarter 2014 letter.

Check out John Rogers latest stock trades

Top Ranked Articles about Laboratory Corp of America Hldgs

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John Rogers Comments on Laboratory Corp. of America Holdings
We purchased a previous holding in our mid ca p fund, Laboratory Corp. of America Holdings (LH). LabCorp maintains a leading market position in an indust ry that continues to show promising growth potential du e to technological advances, aging demographics, health care cost containment, and preventative medicine. LabCorp maintains a solid balance sheet, generates a significant amount of free cash flow and has been returning value to shareholders through share repurchases. The company operates with an experienced management team that is conservative yet willing to take slight risks in order to grow the business long-term. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 21.20
LH's P/E(ttm) is ranked higher than
94% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 21.20 )
LH' s 10-Year P/E(ttm) Range
Min: 12.98   Max: 24.73
Current: 21.2

12.98
24.73
Forward P/E 14.88
LH's Forward P/E is ranked higher than
93% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 14.88 )
N/A
PE(NRI) 21.10
LH's PE(NRI) is ranked higher than
95% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 21.10 )
LH' s 10-Year PE(NRI) Range
Min: 12.97   Max: 24.73
Current: 21.1

12.97
24.73
P/B 3.80
LH's P/B is ranked higher than
62% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.90 vs. LH: 3.80 )
LH' s 10-Year P/B Range
Min: 2.78   Max: 5.41
Current: 3.8

2.78
5.41
P/S 1.79
LH's P/S is ranked higher than
80% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.66 vs. LH: 1.79 )
LH' s 10-Year P/S Range
Min: 1.33   Max: 2.97
Current: 1.79

1.33
2.97
PFCF 20.20
LH's PFCF is ranked higher than
91% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 20.20 )
LH' s 10-Year PFCF Range
Min: 9.15   Max: 20.72
Current: 20.2

9.15
20.72
POCF 14.67
LH's POCF is ranked higher than
91% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 14.67 )
LH' s 10-Year POCF Range
Min: 7.45   Max: 16.85
Current: 14.67

7.45
16.85
EV-to-EBIT 16.62
LH's EV-to-EBIT is ranked higher than
91% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 16.62 )
LH' s 10-Year EV-to-EBIT Range
Min: 8.8   Max: 16.2
Current: 16.62

8.8
16.2
PEG 3.58
LH's PEG is ranked higher than
93% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 3.58 )
LH' s 10-Year PEG Range
Min: 0.82   Max: 8.39
Current: 3.58

0.82
8.39
Shiller P/E 21.60
LH's Shiller P/E is ranked higher than
93% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 21.60 )
LH' s 10-Year Shiller P/E Range
Min: 16.13   Max: 33.49
Current: 21.6

16.13
33.49
Current Ratio 1.73
LH's Current Ratio is ranked higher than
60% of the 287 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.52 vs. LH: 1.73 )
LH' s 10-Year Current Ratio Range
Min: 0.79   Max: 3.1
Current: 1.73

0.79
3.1
Quick Ratio 1.59
LH's Quick Ratio is ranked higher than
61% of the 287 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.20 vs. LH: 1.59 )
LH' s 10-Year Quick Ratio Range
Min: 0.72   Max: 2.91
Current: 1.59

0.72
2.91
Days Inventory 13.11
LH's Days Inventory is ranked higher than
94% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 141.40 vs. LH: 13.11 )
LH' s 10-Year Days Inventory Range
Min: 9.77   Max: 16.03
Current: 13.11

9.77
16.03
Days Sales Outstanding 49.53
LH's Days Sales Outstanding is ranked higher than
86% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 81.46 vs. LH: 49.53 )
LH' s 10-Year Days Sales Outstanding Range
Min: 44.64   Max: 110.1
Current: 49.53

44.64
110.1

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.00
LH's Price/DCF (Projected) is ranked higher than
96% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 1.00 )
LH' s 10-Year Price/DCF (Projected) Range
Min: 0.72   Max: 6.11
Current: 1

0.72
6.11
Price/Median PS Value 1.00
LH's Price/Median PS Value is ranked higher than
82% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.40 vs. LH: 1.00 )
LH' s 10-Year Price/Median PS Value Range
Min: 0.07   Max: 1.56
Current: 1

0.07
1.56
Price/Peter Lynch Fair Value 3.50
LH's Price/Peter Lynch Fair Value is ranked higher than
90% of the 332 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.00 vs. LH: 3.50 )
LH' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.95   Max: 3.83
Current: 3.5

0.95
3.83
Earnings Yield (Greenblatt) 6.00
LH's Earnings Yield (Greenblatt) is ranked higher than
88% of the 292 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.30 vs. LH: 6.00 )
LH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6   Max: 11.3
Current: 6

6
11.3
Forward Rate of Return (Yacktman) 11.32
LH's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 114 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 10.73 vs. LH: 11.32 )
LH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 8.3   Max: 23.6
Current: 11.32

8.3
23.6

Business Description

Industry: Medical Diagnostics & Research » Diagnostics & Research
Compare:ALR, DGX, LIFE, ENZ, IDXX » details
Traded in other countries:LAB.Germany,
Laboratory Corp of America Hldgs, founded in 1971, is an independent clinical laboratory company in the United States. Since the Companys founding, 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 Companys 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.
» More Articles for LH

Headlines

Articles On GuruFocus.com
Laboratory Corporation of America Holdings Q4 Earnings Beat Market Expectations Feb 24 2015 
Westport Buys Apparel Retailer Express During Q4 Feb 11 2015 
Investment Ideas from Guy Spier - Part 2 Jan 07 2015 
The Top Five Guru-Held Mid-Cap Stocks of Q2 Sep 05 2014 
LabCorp: A Leading Independent Diagnostic Laboratory Aug 22 2014 
Tom Gayner’s Top 5 New Portfolio Picks Aug 11 2014 
Top Five Guru-Owned Mid Cap Stocks Jun 18 2014 
John Rogers Comments on Laboratory Corp. of America Holdings May 07 2014 
Morning Coffee: Widely Held Guru Stocks Trading Near Historic Low P/S May 06 2014 
John Rogers' Ariel Appreciation Fund First Quarter 2014 Commentary Apr 30 2014 


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