Labcorp HoldingsLTS:0JSY +1.36%80 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates LTS:0JSY with a GF Score™ of 80/100 and a GF Value™ of $269.33 (Fairly Valued). The stock has 6 warning signs investors should review. Among 193 Medical Diagnostics & Research companies, Labcorp Holdings ranks better than 99.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Labcorp Holdings's annualized net income for the quarter that ended in Mar. 2026 was $1,111 Mil. Labcorp Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-1,814 Mil. Therefore, Labcorp Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Labcorp Holdings's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0JSY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LTS:0JSY's Return-on-Tangible-Equity is ranked better than 99.48% of 193
companies
in the Medical Diagnostics & Research industry
Industry Median: 0.07
vs LTS:0JSY: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Labcorp Holdings Return-on-Tangible-Equity Related Terms
Labcorp Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Labcorp Holdings's Return-on-Tangible-Equity 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.
LTS:0JSY vs DGX, GH, MTD: Return-on-Tangible-Equity Comparison
For the Diagnostics & Research subindustry, Labcorp Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Labcorp Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Labcorp Holdings's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Labcorp Holdings (LTS:0JSY) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Labcorp Holdings and its competitors. According to the industry distribution chart, Labcorp Holdings ranks #1 out of 193 companies in the Medical Diagnostics & Research industry, placing it in the top 0.5%.
Is Labcorp Holdings' Return-on-Tangible-Equity too high?
Labcorp Holdings' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Labcorp Holdings ranks #1 out of 193 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Labcorp Holdings has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Labcorp Holdings' Return-on-Tangible-Equity compare to DGX and GH?
According to the Medical Diagnostics & Research industry distribution chart, Labcorp Holdings ranks #1 out of 193 companies for Return-on-Tangible-Equity. This places Labcorp Holdings in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 0.07. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Medical Diagnostics & Research company?
The median Return-on-Tangible-Equity among Medical Diagnostics & Research companies is 0.07, based on 193 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Labcorp Holdings and its competitors. For the Medical Diagnostics & Research industry, the median Return-on-Tangible-Equity is 0.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labcorp Holdings's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Fairly Valued. The stock's GF Value™ is $269.33, compared to a current price of $284.59 — trading 5.7% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Labcorp Holdings' overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Labcorp Holdings (LTS:0JSY), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 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 $284.59 is trading 5.7% above its estimated GF Value™ of $269.33.
GuruFocus considers Labcorp Holdings to be Fairly Valued.
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 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.
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