Labcorp Holdings Inc. (LH) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

Per the Roarable RQD rating, LH scores 73 out of 100, a letter grade of B, labeled "Roarable Buy — Good Risk/Reward." The five pillars are:

• Fundamental Cash Engine: 13 / 20 (ROIC 8.3%; FCF yield 4.04%). This is the second-weakest pillar relative to its ceiling. Cash generation is positive and reported, but the return on invested capital and free-cash-flow yield are modest for the price level shown.
• Whale 13F Flow: 18 / 20 (institutional accumulation and options positioning). This is the strongest pillar, indicating the rating model reads institutional positioning as constructive. The underlying holder detail is not in the source data, so the pillar cannot be decomposed further here.
• Insider Conviction: 14 / 20 (SEC Form 4 and Congressional PTR cluster flow). A moderately positive read on insider and congressional activity, though the individual transactions are not itemized in the source data.
• Macro Regime Fit: 12 / 20 (beta 0.96; sector sensitivity). The lowest pillar relative to its ceiling. A beta of 0.96 means the stock has historically moved roughly in line with the market, so the score reflects limited defensive or offensive asymmetry against the macro regime.
• Forensic Balance Sheet: 16 / 20 (Altman Z 3.58; Piotroski F 8/9; Debt/Equity 0.59). A strong pillar. The Altman Z of 3.58 and Piotroski F of 8 out of 9 point to financial health and improving fundamentals on the model's scale.

For a prospective investor evaluating the stock today, the upside case rests on the balance-sheet strength and institutional positioning, which together carry the score. The valuation tradeoff is material: the trailing P/E of 34 and forward P/E of 31.6 are elevated relative to the modest 8.3% ROIC and 4.04% FCF yield, so the price already embeds substantial expectations. The rating is a model output that weights these factors; it does not constitute a recommendation, and the macro-regime pillar signals that the stock's returns are not strongly insulated from broader market moves.

Labcorp Holdings Inc. is a NYSE-listed issuer in the Health Care sector, operating in the Medical Specialities industry, per the company profile. The source data does not itemize its products, customer segments, or revenue model beyond the sector and industry classification. Not available in source data for detailed business description.

Per the SEC financials, revenue rose from $12161.6M in FY 2023 to $13951.7M in FY 2025, and net income rose from $418.0M to $877.0M over the same span. Market data reports a gross margin of 28.8%, an operating margin of 9.9%, and a net margin of 6.3%, with ROIC of 8.3%. The forensic balance sheet pillar cites an Altman Z-Score of 3.58 and a Piotroski F-Score of 8 out of 9. Debt was $5084.6M at FY 2025 against cash of $532.3M, and the source reports Debt/Equity of 0.59; cash declined from $1518.7M in FY 2024 to $532.3M in FY 2025 while debt was reduced slightly.

The news feed contains six items, all tagged to LH:

• Positive catalyst (GREEN): A TradingView report indicates LH stock rose on Q3 earnings and a revenue beat, with the 2026 view raised.
• Market wire (YELLOW): A Yahoo! Finance Canada item and a TradingKey item (reporting a 10.60% move on Oct 28) are categorized as market wire, providing price-action context without a directional signal.
• Risk watch (RED): A Yahoo Finance report states LH shrugged off Q3 earnings as PAMA risk looms, flagging the PAMA (Protecting Access to Medicare Act) lab-pricing exposure as a live concern. A Seeking Alpha item carries a rating downgrade headline, titled "The Optimism May Be Going Overboard."
• Market wire (YELLOW): A Yahoo Finance item on cash-flow outlook is categorized as market wire.

The Butterfly supply-chain graph reports no supply-chain links and no proprietary signals (supply chain: NONE). The net read is that the catalyst set is mixed: an earnings beat and raised view are offset by a named regulatory pricing risk and a downgrade.

• What is the specific exposure and timeline of the PAMA lab-pricing risk, and what share of revenue does it touch?
• Why did cash fall from $1518.7M in FY 2024 to $532.3M in FY 2025, and what drove the decline?
• Does the 34 trailing P/E reflect durable earnings growth, given ROIC of 8.3% and FCF yield of 4.04%?
• Who are the institutional and insider holders driving the Whale and Insider pillars, and what are the transaction sizes?
• What is the analyst consensus and price-target range, if any exists?