Labcorp LH
Labcorp scores weak on business quality (4.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Labcorp does
Labcorp Holdings operates diagnostic laboratories, generating revenue by processing clinical lab tests for hospitals, physicians, and patients.
- What it does best
Labcorp excels in diagnostic scale, producing $14.3 billion in revenue with a gross margin of 28.9%. This edges out peer CVS at 14.2% and peer CI at 9.1%, though competitor DGX commands a higher gross margin of 33.2%.
- The main risk
With net debt of $5.1 billion, the company carries significant leverage that limits financial flexibility if diagnostic volumes falter or operational costs rise unexpectedly.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 11.4% with a net margin of 7.0%, reflecting stable conversion of its $14.3 billion revenue base into bottom-line earnings.
Its network of testing facilities anchors a medical provider lock-in, placing its gross margin in the bottom decile of its sector due to high fixed lab costs.
Revenue grew 7.2% to $14.3 billion over the latest period, showing a steady expansion following historical periods of post-pandemic normalization.
Debt-to-equity sits at 0.7 with interest coverage at 7.2x, supported by $1.2 billion in free cash flow. The balance sheet is holding steady.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $723K outside pre-planned sales.
Our sealed record on LH
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Labcorp scores weak on the Cluenex quality check (4.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 sold $723K outside pre-planned sales.
Oct 28, 2026.
See LH today
- Today's verdict on LH, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Labcorp (LH)”, https://cluenex.com/stocks/lh/, data as of Oct 10, 2026.