LabCorp (LH)

Key Statistics

EV/EBIT = 19x

ROE = 6.98%

Debt/Equity = 80%

FCF Yield = 4.3%

Dividend Yield = 1.3%

Market Capitalization = $18.64 billion

The Company

LabCorp (LH), officially known as Laboratory Corporation of America Holdings, is a healthcare company focusing on testing and research. They play a pivotal role in disseminating crucial information to medical professionals, hospitals, and researchers.

LabCorp operates through two main segments: Dx (Diagnostic) and DD (Drug Development). In 2022, Dx contributed 61% of the company's revenues, primarily in the US, while DD contributed 39%, with revenues evenly split between the US and the rest of the world.

LabCorp has benefited from increases in testing services. Patient blood work has increased in frequency over the decades, with various tests emerging for a variety of different uses.