QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis

NYSE:DGX • US74834L1008

207.8 USD
-1.74 (-0.83%)
At close: Feb 25, 2026
207.8 USD
0 (0%)
After Hours: 2/25/2026, 8:05:11 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, DGX scores 5 out of 10 in our fundamental rating. DGX was compared to 101 industry peers in the Health Care Providers & Services industry. While DGX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DGX has a decent growth rate and is not valued too expensively. Finally DGX also has an excellent dividend rating. These ratings could make DGX a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year DGX was profitable.
  • In the past year DGX had a positive cash flow from operations.
  • In the past 5 years DGX has always been profitable.
  • Each year in the past 5 years DGX had a positive operating cash flow.
DGX Yearly Net Income VS EBIT VS OCF VS FCFDGX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • DGX has a Return On Assets of 6.09%. This is amongst the best in the industry. DGX outperforms 85.15% of its industry peers.
  • DGX's Return On Equity of 13.78% is amongst the best of the industry. DGX outperforms 80.20% of its industry peers.
  • With a decent Return On Invested Capital value of 8.88%, DGX is doing good in the industry, outperforming 77.23% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DGX is in line with the industry average of 8.93%.
  • The last Return On Invested Capital (8.88%) for DGX is above the 3 year average (8.20%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.09%
ROE 13.78%
ROIC 8.88%
ROA(3y)5.84%
ROA(5y)7.89%
ROE(3y)13.34%
ROE(5y)17.37%
ROIC(3y)8.2%
ROIC(5y)10.15%
DGX Yearly ROA, ROE, ROICDGX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.95%, DGX belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
  • DGX's Profit Margin has declined in the last couple of years.
  • DGX has a better Operating Margin (14.68%) than 89.11% of its industry peers.
  • DGX's Operating Margin has declined in the last couple of years.
  • DGX's Gross Margin of 33.32% is fine compared to the rest of the industry. DGX outperforms 64.36% of its industry peers.
  • DGX's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 14.68%
PM (TTM) 8.95%
GM 33.32%
OM growth 3Y-1.76%
OM growth 5Y-7.12%
PM growth 3Y-2.06%
PM growth 5Y-9.93%
GM growth 3Y-1.68%
GM growth 5Y-2.69%
DGX Yearly Profit, Operating, Gross MarginsDGX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DGX is still creating some value.
  • DGX has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for DGX has been reduced compared to 5 years ago.
  • The debt/assets ratio for DGX has been reduced compared to a year ago.
DGX Yearly Shares OutstandingDGX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DGX Yearly Total Debt VS Total AssetsDGX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • DGX has an Altman-Z score of 3.42. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
  • DGX's Altman-Z score of 3.42 is fine compared to the rest of the industry. DGX outperforms 71.29% of its industry peers.
  • The Debt to FCF ratio of DGX is 4.17, which is a neutral value as it means it would take DGX, 4.17 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.17, DGX is doing good in the industry, outperforming 68.32% of the companies in the same industry.
  • A Debt/Equity ratio of 0.72 indicates that DGX is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.72, DGX perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.17
Altman-Z 3.42
ROIC/WACC1.13
WACC7.87%
DGX Yearly LT Debt VS Equity VS FCFDGX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.04 indicates that DGX should not have too much problems paying its short term obligations.
  • The Current ratio of DGX (1.04) is worse than 67.33% of its industry peers.
  • DGX has a Quick Ratio of 1.04. This is a bad value and indicates that DGX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • DGX has a worse Quick ratio (0.96) than 65.35% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.96
DGX Yearly Current Assets VS Current LiabilitesDGX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 9.20% over the past year.
  • The Earnings Per Share has been decreasing by -2.45% on average over the past years.
  • The Revenue has grown by 11.78% in the past year. This is quite good.
  • Measured over the past years, DGX shows a small growth in Revenue. The Revenue has been growing by 3.18% on average per year.
EPS 1Y (TTM)9.2%
EPS 3Y-0.24%
EPS 5Y-2.45%
EPS Q2Q%3.86%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y3.74%
Revenue growth 5Y3.18%
Sales Q2Q%7.06%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.53% on average over the next years.
  • The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y6.73%
EPS Next 2Y7.78%
EPS Next 3Y8.39%
EPS Next 5Y7.53%
Revenue Next Year6.52%
Revenue Next 2Y5.1%
Revenue Next 3Y5.02%
Revenue Next 5Y3.17%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
DGX Yearly Revenue VS EstimatesDGX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
DGX Yearly EPS VS EstimatesDGX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10

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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.10, which indicates a rather expensive current valuation of DGX.
  • 67.33% of the companies in the same industry are more expensive than DGX, based on the Price/Earnings ratio.
  • DGX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 19.77, DGX is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 62.38% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, DGX is valued a bit cheaper.
Industry RankSector Rank
PE 21.1
Fwd PE 19.77
DGX Price Earnings VS Forward Price EarningsDGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 62.38% of the companies in the same industry are more expensive than DGX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than the industry average as 71.29% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.01
EV/EBITDA 13.04
DGX Per share dataDGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DGX does not grow enough to justify the current Price/Earnings ratio.
  • DGX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)N/A
EPS Next 2Y7.78%
EPS Next 3Y8.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.70%, DGX has a reasonable but not impressive dividend return.
  • DGX's Dividend Yield is rather good when compared to the industry average which is at 0.49. DGX pays more dividend than 90.10% of the companies in the same industry.
  • DGX's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.7%

5.2 History

  • On average, the dividend of DGX grows each year by 7.42%, which is quite nice.
  • DGX has paid a dividend for at least 10 years, which is a reliable track record.
  • DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.42%
Div Incr Years13
Div Non Decr Years20
DGX Yearly Dividends per shareDGX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • DGX pays out 35.73% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of DGX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP35.73%
EPS Next 2Y7.78%
EPS Next 3Y8.39%
DGX Yearly Income VS Free CF VS DividendDGX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
DGX Dividend Payout.DGX Dividend Payout, showing the Payout Ratio.DGX Dividend Payout.PayoutRetained Earnings

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QUEST DIAGNOSTICS INC

NYSE:DGX (2/25/2026, 8:05:11 PM)

After market: 207.8 0 (0%)

207.8

-1.74 (-0.83%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-10
Earnings (Next)04-20
Inst Owners99.25%
Inst Owner Change0.77%
Ins Owners0.3%
Ins Owner Change0.5%
Market Cap23.12B
Revenue(TTM)11.04B
Net Income(TTM)988.00M
Analysts75.83
Price Target202.57 (-2.52%)
Short Float %5.26%
Short Ratio5.52
Dividend
Industry RankSector Rank
Dividend Yield 1.7%
Yearly Dividend3.19
Dividend Growth(5Y)7.42%
DP35.73%
Div Incr Years13
Div Non Decr Years20
Ex-Date04-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.16%
Min EPS beat(2)1.51%
Max EPS beat(2)2.81%
EPS beat(4)4
Avg EPS beat(4)1.74%
Min EPS beat(4)0.93%
Max EPS beat(4)2.81%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)11
Avg EPS beat(12)2.13%
EPS beat(16)15
Avg EPS beat(16)2.75%
Revenue beat(2)2
Avg Revenue beat(2)1.39%
Min Revenue beat(2)0.9%
Max Revenue beat(2)1.88%
Revenue beat(4)3
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)0.88%
Revenue beat(12)10
Avg Revenue beat(12)1.27%
Revenue beat(16)13
Avg Revenue beat(16)1.52%
PT rev (1m)0.45%
PT rev (3m)0.99%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)2.88%
Revenue NY rev (3m)2.92%
Valuation
Industry RankSector Rank
PE 21.1
Fwd PE 19.77
P/S 2.09
P/FCF 17.01
P/OCF 12.26
P/B 3.22
P/tB N/A
EV/EBITDA 13.04
EPS(TTM)9.85
EY4.74%
EPS(NY)10.51
Fwd EY5.06%
FCF(TTM)12.22
FCFY5.88%
OCF(TTM)16.95
OCFY8.16%
SpS99.2
BVpS64.46
TBVpS-30.66
PEG (NY)3.14
PEG (5Y)N/A
Graham Number119.52
Profitability
Industry RankSector Rank
ROA 6.09%
ROE 13.78%
ROCE 11.62%
ROIC 8.88%
ROICexc 9.16%
ROICexgc 42.05%
OM 14.68%
PM (TTM) 8.95%
GM 33.32%
FCFM 12.32%
ROA(3y)5.84%
ROA(5y)7.89%
ROE(3y)13.34%
ROE(5y)17.37%
ROIC(3y)8.2%
ROIC(5y)10.15%
ROICexc(3y)8.55%
ROICexc(5y)10.67%
ROICexgc(3y)38.17%
ROICexgc(5y)44.8%
ROCE(3y)10.8%
ROCE(5y)13.38%
ROICexgc growth 3Y-0.39%
ROICexgc growth 5Y-2.54%
ROICexc growth 3Y-4.69%
ROICexc growth 5Y-7.65%
OM growth 3Y-1.76%
OM growth 5Y-7.12%
PM growth 3Y-2.06%
PM growth 5Y-9.93%
GM growth 3Y-1.68%
GM growth 5Y-2.69%
F-Score8
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.17
Debt/EBITDA 2.36
Cap/Depr 92.46%
Cap/Sales 4.78%
Interest Coverage 5.79
Cash Conversion 86.12%
Profit Quality 137.55%
Current Ratio 1.04
Quick Ratio 0.96
Altman-Z 3.42
F-Score8
WACC7.87%
ROIC/WACC1.13
Cap/Depr(3y)90.53%
Cap/Depr(5y)92.56%
Cap/Sales(3y)4.5%
Cap/Sales(5y)4.26%
Profit Quality(3y)114.72%
Profit Quality(5y)115.14%
High Growth Momentum
Growth
EPS 1Y (TTM)9.2%
EPS 3Y-0.24%
EPS 5Y-2.45%
EPS Q2Q%3.86%
EPS Next Y6.73%
EPS Next 2Y7.78%
EPS Next 3Y8.39%
EPS Next 5Y7.53%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y3.74%
Revenue growth 5Y3.18%
Sales Q2Q%7.06%
Revenue Next Year6.52%
Revenue Next 2Y5.1%
Revenue Next 3Y5.02%
Revenue Next 5Y3.17%
EBIT growth 1Y15.06%
EBIT growth 3Y1.91%
EBIT growth 5Y-4.17%
EBIT Next Year30.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.51%
FCF growth 3Y1.13%
FCF growth 5Y-3.05%
OCF growth 1Y41.38%
OCF growth 3Y3.16%
OCF growth 5Y-1.22%

QUEST DIAGNOSTICS INC / DGX FAQ

Can you provide the ChartMill fundamental rating for QUEST DIAGNOSTICS INC?

ChartMill assigns a fundamental rating of 5 / 10 to DGX.


Can you provide the valuation status for QUEST DIAGNOSTICS INC?

ChartMill assigns a valuation rating of 4 / 10 to QUEST DIAGNOSTICS INC (DGX). This can be considered as Fairly Valued.


Can you provide the profitability details for QUEST DIAGNOSTICS INC?

QUEST DIAGNOSTICS INC (DGX) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for DGX stock?

The Price/Earnings (PE) ratio for QUEST DIAGNOSTICS INC (DGX) is 21.1 and the Price/Book (PB) ratio is 3.22.


What is the earnings growth outlook for QUEST DIAGNOSTICS INC?

The Earnings per Share (EPS) of QUEST DIAGNOSTICS INC (DGX) is expected to grow by 6.73% in the next year.