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Laboratory of America Holdings Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Laboratory of America Holdings has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Laboratory of America Holdings's Piotroski F-Score or its related term are showing as below:

LH' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Laboratory of America Holdings was 9. The lowest was 2. And the median was 6.


Laboratory of America Holdings Piotroski F-Score Historical Data

The historical data trend for Laboratory of America Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Laboratory of America Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 6.00 8.00 8.00

Laboratory of America Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 9.00 8.00 6.00 5.00

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Laboratory of America Holdings Piotroski F-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Laboratory of America Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Laboratory of America Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 587.3 + 553 + 491.6 + 358.6 = $1,991 Mil.
Cash Flow from Operations was 767.3 + 697.5 + 356 + 572.5 = $2,393 Mil.
Revenue was 4062.6 + 4056.1 + 3899.6 + 3696.9 = $15,715 Mil.
Gross Profit was 1385.5 + 1375 + 1232.9 + 1122.7 = $5,116 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(20417.1 + 20866.5 + 20385.4 + 20728.4 + 20403.1) / 5 = $20560.1 Mil.
Total Assets at the begining of this year (Jun21) was $20,417 Mil.
Long-Term Debt & Capital Lease Obligation was $6,112 Mil.
Total Current Assets was $5,031 Mil.
Total Current Liabilities was $2,643 Mil.
Net Income was 703.4 + 938.3 + 769.6 + 467.4 = $2,879 Mil.

Revenue was 3896.1 + 4489.8 + 4161.5 + 3840.7 = $16,388 Mil.
Gross Profit was 1559.4 + 1904.9 + 1599 + 1264.8 = $6,328 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(17849.1 + 18739.6 + 20071.7 + 20417.1 + 20417.1) / 5 = $19498.92 Mil.
Total Assets at the begining of last year (Jun20) was $17,849 Mil.
Long-Term Debt & Capital Lease Obligation was $6,155 Mil.
Total Current Assets was $5,694 Mil.
Total Current Liabilities was $2,667 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Laboratory of America Holdings's current Net Income (TTM) was 1,991. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Laboratory of America Holdings's current Cash Flow from Operations (TTM) was 2,393. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=1990.5/20417.1
=0.09749181

ROA (Last Year)=Net Income/Total Assets (Jun20)
=2878.7/17849.1
=0.16127984

Laboratory of America Holdings's return on assets of this year was 0.09749181. Laboratory of America Holdings's return on assets of last year was 0.16127984. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Laboratory of America Holdings's current Net Income (TTM) was 1,991. Laboratory of America Holdings's current Cash Flow from Operations (TTM) was 2,393. ==> 2,393 > 1,991 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=6111.6/20560.1
=0.29725536

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=6155/19498.92
=0.31565851

Laboratory of America Holdings's gearing of this year was 0.29725536. Laboratory of America Holdings's gearing of last year was 0.31565851. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=5030.8/2642.9
=1.90351508

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=5693.5/2667.1
=2.13471561

Laboratory of America Holdings's current ratio of this year was 1.90351508. Laboratory of America Holdings's current ratio of last year was 2.13471561. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Laboratory of America Holdings's number of shares in issue this year was 92.7. Laboratory of America Holdings's number of shares in issue last year was 98.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5116.1/15715.2
=0.32555106

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6328.1/16388.1
=0.38613994

Laboratory of America Holdings's gross margin of this year was 0.32555106. Laboratory of America Holdings's gross margin of last year was 0.38613994. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=15715.2/20417.1
=0.76970774

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=16388.1/17849.1
=0.91814713

Laboratory of America Holdings's asset turnover of this year was 0.76970774. Laboratory of America Holdings's asset turnover of last year was 0.91814713. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Laboratory of America Holdings has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Laboratory of America Holdings  (NYSE:LH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Laboratory of America Holdings Piotroski F-Score Related Terms

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Laboratory of America Holdings Business Description

Laboratory of America Holdings logo
Traded in Other Exchanges
Address
358 South Main Street, Burlington, NC, USA, 27215
Laboratory Corp. of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing. With the addition of Covance, LabCorp also has a sizable footprint in the global contract research organization market.
Executives
Wengel Kathryn E director JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Summy Amy B. officer: EVP, Chief Marketing Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Davis Jeffrey A. director 1200 WILSON DRIVE WEST CHESTER PA 19380
Schroeder Mark S officer: EVP, President-Diagnostics Lab 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kirchgraber Paul R officer: CEO, Covance Drug Development 531 SOUTH SPRING STREET BURLINGTON NC 27215
Seltz Judith C officer: Chief Human Resources Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Wilkinson Peter J officer: SVP, Chief Accounting Officer C/O PHARMACEUTICAL PRODUCT DEVELOPMENT 929 NORTH FRONT STREET WILMINGTON NC 28401
Van Der Vaart Sandra D officer: SVP, Global General Counsel 531 SOUTH SPRING STREET BURLINGTON NC 27215
Caveney Brian J officer: SVP, Chief Medical Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Gary M. Huff officer: CEO, LabCorp Diagnostics 531 SOUTH MAIN STREET BURLINGTON NC 27215
Ratliff John D officer: CEO, Covance Drug Development C/O QUINTILES TRANSNATIONAL HOLDINGS INC 4820 EMPEROR BLVD. DURHAM NC 27703
Parham Richelle P director 312 WALNUT STREET, SUITE 1800 CINCINNATI OH 45202
Uthgenannt Lisa J officer: Chief Human Resources Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Keller Deborah L officer: CEO, Covance Drug Development 530 HERMAN O. WEST DRIVE EXTON PA 19341
Berberian Lance officer: SVP, Chief Information Officer

Laboratory of America Holdings Headlines

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