Labcorp Holdings (LTS:0JSY) Financial Strength: 5 (As of Jun. 2026) — 17% Below Median

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LTS:0JSY Labcorp Holdings Inc LTS:0JSY
79 GF Score
Price $311.26
GF Value $275.97
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Labcorp Holdings Financial Strength?

Labcorp Holdings LTS:0JSY +0.59% 79 Financial Strength is 5 as of Jun. 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates LTS:0JSY with a GF Score™ of 79/100 and a GF Value™ of $275.97 (Modestly Overvalued). The stock has 7 warning signs investors should review.

Labcorp Holdings has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Labcorp Holdings's Interest Coverage for the quarter that ended in Jun. 2026 was 7.47. Labcorp Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.45. As of today, Labcorp Holdings's Altman Z-Score is 3.31.


Labcorp Holdings  (LTS:0JSY) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Labcorp Holdings has the Financial Strength Rank of 5.


Labcorp Holdings Financial Strength Related Terms


LTS:0JSY vs DGX, MTD, GH: Financial Strength Comparison

For the Diagnostics & Research subindustry, Labcorp Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Labcorp Holdings Financial Strength vs Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Labcorp Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Labcorp Holdings's Financial Strength falls into.


LTS:0JSY
79GF Score
Labcorp Holdings Inc LTS:0JSY
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Labcorp Holdings Financial Strength Calculation

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

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

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Labcorp Holdings's Interest Expense for the months ended in Jun. 2026 was $-61 Mil. Its Operating Income for the months ended in Jun. 2026 was $457 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $6,580 Mil.

Labcorp Holdings's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*456.7/-61.1
=7.47

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Labcorp Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(185.9 + 6580.2) / 14924.4
=0.45

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Labcorp Holdings has a Z-score of 3.31, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.31 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Labcorp Holdings (LTS:0JSY) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Labcorp Holdings and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Labcorp Holdings' Financial Strength has ranged from 4.00 to 7.00.
Is Labcorp Holdings' Financial Strength too high?
Labcorp Holdings' current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. Overall, Labcorp Holdings has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Labcorp Holdings' Financial Strength compare to DGX and MTD?
Labcorp Holdings' Financial Strength of 5 can be compared against companies in the Medical Diagnostics & Research industry. Historically, Labcorp Holdings' own Financial Strength has ranged from 4.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Medical Diagnostics & Research company?
A good Financial Strength depends on the Medical Diagnostics & Research industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Labcorp Holdings and its competitors. Labcorp Holdings's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Labcorp Holdings (LTS:0JSY) is currently considered Modestly Overvalued. The stock's GF Value™ is $275.97, compared to a current price of $311.26 — trading 12.8% above its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Labcorp Holdings' overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Labcorp Holdings (LTS:0JSY), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Labcorp Holdings (LTS:0JSY) Overvalued in 2026?

Based on GuruFocus' analysis, Labcorp Holdings stock appears to be overvalued. The current stock price of $311.26 is trading 12.8% above its estimated GF Value™ of $275.97. GuruFocus considers Labcorp Holdings to be Modestly Overvalued.

Key valuation signals for LTS:0JSY:

  • Financial Strength: 5 (17% below median its 10-year median of 6.00)
  • GF Value™: $275.97 vs. price of $311.26 (12.8% above fair value)
  • GF Score™: 79/100 with 7 warning signs

No single metric tells the full story. See the LTS:0JSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Labcorp Holdings Business Description

Other Exchanges LH:USAN6B:Germany
Address 358 South Main Street, Burlington, NC, USA, 27215
Labcorp 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 uncomplicated routine blood and urine screens to complex oncology and genomic testing.
79GF Score

Get the complete analysis for LTS:0JSY

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$311.26
Price
$275.97
GF Value