Is the business good?
How good a business is LH?
Labcorp earns 8.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.1%
Return on invested capital · cost of capital 9.0% · 0.92 points below what the capital costs: growth destroys value
- Operating margin
- 10%
Operating margin · Diagnostics & Research median 7.1% · 12 months to Q1 2026
- Cash conversion
- 1.47×
Cash conversion · 1.58× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 23% |
| FY2022 | 12% |
| FY2023 | 6.0% |
| FY2024 | 8.3% |
| FY2025 | 9.9% |
Details›
- Gross margin12 months to Q1 2026
- 29%
- Operating margin12 months to Q1 2026
- 10%
- Net margin12 months to Q1 2026
- 6.7%
- Free cash flow margin
- 9.8%
- Revenue, trailing twelve months
- $14.1B
- Free cash flow, trailing twelve months
- $1.38B
- Net income, trailing twelve months
- $942M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Diagnostics & Research
Ranks #22 of 29 by Smart Score