QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DGX - US74834L1008 - Common Stock
175.52 USD
-0.42 (-0.24%)
175.52 USD
0 (0%)
DGX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. DGX has an excellent profitability rating, but there are some minor concerns on its financial health. DGX has a decent growth rate and is not valued too expensively. DGX also has an excellent dividend rating. This makes DGX very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
DGX had positive earnings in the past year.
In the past year DGX had a positive cash flow from operations.
DGX had positive earnings in each of the past 5 years.
Each year in the past 5 years DGX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.95%, DGX belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
DGX has a Return On Equity of 13.27%. This is in the better half of the industry: DGX outperforms 78.22% of its industry peers.
DGX has a better Return On Invested Capital (8.79%) than 76.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DGX is in line with the industry average of 9.58%.
The last Return On Invested Capital (8.79%) for DGX is above the 3 year average (8.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 13.27% | ||
| ROIC | 8.79% |
ROA(3y)6.25%
ROA(5y)8.71%
ROE(3y)14.08%
ROE(5y)18.83%
ROIC(3y)8.77%
ROIC(5y)10.97%
1.3 Margins
DGX has a better Profit Margin (8.88%) than 91.09% of its industry peers.
In the last couple of years the Profit Margin of DGX has declined.
DGX has a Operating Margin of 14.71%. This is amongst the best in the industry. DGX outperforms 88.12% of its industry peers.
In the last couple of years the Operating Margin of DGX has declined.
DGX has a better Gross Margin (33.47%) than 63.37% of its industry peers.
In the last couple of years the Gross Margin of DGX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.71% | ||
| PM (TTM) | 8.88% | ||
| GM | 33.47% |
OM growth 3Y-14.9%
OM growth 5Y-3.56%
PM growth 3Y-21.92%
PM growth 5Y-4.54%
GM growth 3Y-5.79%
GM growth 5Y-1.22%
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.
Compared to 1 year ago, DGX has about the same amount of shares outstanding.
The number of shares outstanding for DGX has been reduced compared to 5 years ago.
The debt/assets ratio for DGX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.18 indicates that DGX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.18, DGX is doing good in the industry, outperforming 67.33% of the companies in the same industry.
DGX has a debt to FCF ratio of 4.07. This is a neutral value as DGX would need 4.07 years to pay back of all of its debts.
The Debt to FCF ratio of DGX (4.07) is better than 70.30% of its industry peers.
DGX has a Debt/Equity ratio of 0.71. This is a neutral value indicating DGX is somewhat dependend on debt financing.
DGX has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.02
WACC8.6%
2.3 Liquidity
DGX has a Current Ratio of 1.13. This is a normal value and indicates that DGX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DGX (1.13) is worse than 64.36% of its industry peers.
DGX has a Quick Ratio of 1.04. This is a normal value and indicates that DGX is financially healthy and should not expect problems in meeting its short term obligations.
DGX has a worse Quick ratio (1.04) than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.41% over the past year.
DGX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 13.74% in the last year.
Measured over the past years, DGX shows a small growth in Revenue. The Revenue has been growing by 5.02% on average per year.
EPS 1Y (TTM)10.41%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%13.04%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%13.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.60% on average over the next years.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y9.8%
EPS Next 2Y7.78%
EPS Next 3Y8.15%
EPS Next 5Y7.6%
Revenue Next Year11.72%
Revenue Next 2Y7.54%
Revenue Next 3Y6.3%
Revenue Next 5Y4.83%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.98 indicates a rather expensive valuation of DGX.
75.25% of the companies in the same industry are more expensive than DGX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DGX to the average of the S&P500 Index (26.84), we can say DGX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.75, DGX is valued correctly.
Based on the Price/Forward Earnings ratio, DGX is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
DGX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
67.33% 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 77.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 11.49 |
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.
The decent profitability rating of DGX may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)2.73
EPS Next 2Y7.78%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.82%.
Compared to an average industry Dividend Yield of 0.60, DGX pays a better dividend. On top of this DGX pays more dividend than 90.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DGX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of DGX is nicely growing with an annual growth rate of 6.92%!
DGX has paid a dividend for at least 10 years, which is a reliable track record.
DGX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.92%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
36.03% of the earnings are spent on dividend by DGX. This is a low number and sustainable payout ratio.
DGX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.03%
EPS Next 2Y7.78%
EPS Next 3Y8.15%
175.52
-0.42 (-0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.22%
Inst Owner Change6.99%
Ins Owners0.3%
Ins Owner Change-1.47%
Market Cap19.52B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target201.37 (14.73%)
Short Float %3.88%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend2.98
Dividend Growth(5Y)6.92%
DP36.03%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.87%
Min EPS beat(2)0.93%
Max EPS beat(2)2.81%
EPS beat(4)4
Avg EPS beat(4)2.75%
Min EPS beat(4)0.93%
Max EPS beat(4)5.56%
EPS beat(8)7
Avg EPS beat(8)2.61%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)15
Avg EPS beat(16)2.88%
Revenue beat(2)2
Avg Revenue beat(2)1.1%
Min Revenue beat(2)0.33%
Max Revenue beat(2)1.88%
Revenue beat(4)3
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)0.83%
Revenue beat(12)10
Avg Revenue beat(12)1.39%
Revenue beat(16)13
Avg Revenue beat(16)1.59%
PT rev (1m)0.39%
PT rev (3m)5.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 16.75 | ||
| P/S | 1.8 | ||
| P/FCF | 14.02 | ||
| P/OCF | 10.36 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)9.76
EY5.56%
EPS(NY)10.48
Fwd EY5.97%
FCF(TTM)12.52
FCFY7.13%
OCF(TTM)16.95
OCFY9.65%
SpS97.54
BVpS65.25
TBVpS-29.71
PEG (NY)1.84
PEG (5Y)2.73
Graham Number119.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 13.27% | ||
| ROCE | 11.35% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.06% | ||
| ROICexgc | 40.27% | ||
| OM | 14.71% | ||
| PM (TTM) | 8.88% | ||
| GM | 33.47% | ||
| FCFM | 12.84% |
ROA(3y)6.25%
ROA(5y)8.71%
ROE(3y)14.08%
ROE(5y)18.83%
ROIC(3y)8.77%
ROIC(5y)10.97%
ROICexc(3y)9.13%
ROICexc(5y)11.7%
ROICexgc(3y)38.8%
ROICexgc(5y)46.51%
ROCE(3y)11.44%
ROCE(5y)14.33%
ROICexgc growth 3Y-18.68%
ROICexgc growth 5Y-6.38%
ROICexc growth 3Y-22.78%
ROICexc growth 5Y-5.24%
OM growth 3Y-14.9%
OM growth 5Y-3.56%
PM growth 3Y-21.92%
PM growth 5Y-4.54%
GM growth 3Y-5.79%
GM growth 5Y-1.22%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 87.86% | ||
| Cap/Sales | 4.53% | ||
| Interest Coverage | 6.09 | ||
| Cash Conversion | 87.43% | ||
| Profit Quality | 144.65% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.18 |
F-Score8
WACC8.6%
ROIC/WACC1.02
Cap/Depr(3y)90.53%
Cap/Depr(5y)97.23%
Cap/Sales(3y)4.27%
Cap/Sales(5y)4.19%
Profit Quality(3y)115.37%
Profit Quality(5y)109.91%
High Growth Momentum
Growth
EPS 1Y (TTM)10.41%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%13.04%
EPS Next Y9.8%
EPS Next 2Y7.78%
EPS Next 3Y8.15%
EPS Next 5Y7.6%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%13.18%
Revenue Next Year11.72%
Revenue Next 2Y7.54%
Revenue Next 3Y6.3%
Revenue Next 5Y4.83%
EBIT growth 1Y21%
EBIT growth 3Y-17.38%
EBIT growth 5Y1.28%
EBIT Next Year44.91%
EBIT Next 3Y16.95%
EBIT Next 5YN/A
FCF growth 1Y133.73%
FCF growth 3Y-20.8%
FCF growth 5Y1.52%
OCF growth 1Y74.7%
OCF growth 3Y-15.78%
OCF growth 5Y1.42%
QUEST DIAGNOSTICS INC / DGX FAQ
Can you provide the ChartMill fundamental rating for QUEST DIAGNOSTICS INC?
ChartMill assigns a fundamental rating of 6 / 10 to DGX.
What is the valuation status for DGX stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the expected EPS growth for QUEST DIAGNOSTICS INC (DGX) stock?
The Earnings per Share (EPS) of QUEST DIAGNOSTICS INC (DGX) is expected to grow by 9.8% in the next year.
How sustainable is the dividend of QUEST DIAGNOSTICS INC (DGX) stock?
The dividend rating of QUEST DIAGNOSTICS INC (DGX) is 7 / 10 and the dividend payout ratio is 36.03%.