QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
178.592 USD
-0.74 (-0.41%)
We assign a fundamental rating of 5 out of 10 to DGX. DGX was compared to 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 correct valuation and a medium growth rate. Finally DGX also has an excellent dividend rating.
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.
In the past 5 years DGX has always been profitable.
DGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGX has a Return On Assets of 5.92%. This is amongst the best in the industry. DGX outperforms 82.18% of its industry peers.
The Return On Equity of DGX (13.09%) is better than 79.21% of its industry peers.
With a decent Return On Invested Capital value of 8.59%, DGX is doing good in the industry, outperforming 74.26% of the companies in the same industry.
DGX had an Average Return On Invested Capital over the past 3 years of 8.77%. This is in line with the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 13.09% | ||
| ROIC | 8.59% |
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
Looking at the Profit Margin, with a value of 8.99%, DGX belongs to the top of the industry, outperforming 90.10% 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 (14.70%) than 86.14% of its industry peers.
DGX's Operating Margin has declined in the last couple of years.
The Gross Margin of DGX (33.23%) is better than 61.39% 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 | 14.7% | ||
| PM (TTM) | 8.99% | ||
| GM | 33.23% |
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
DGX has an Altman-Z score of 3.22. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
DGX has a better Altman-Z score (3.22) than 66.34% of its industry peers.
The Debt to FCF ratio of DGX is 4.63, which is a neutral value as it means it would take DGX, 4.63 years of fcf income to pay off all of its debts.
DGX has a better Debt to FCF ratio (4.63) than 69.31% of its industry peers.
DGX has a Debt/Equity ratio of 0.72. This is a neutral value indicating DGX is somewhat dependend on debt financing.
DGX has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.99
WACC8.69%
2.3 Liquidity
DGX has a Current Ratio of 1.09. 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 Current ratio of 1.09. This is in the lower half of the industry: DGX underperforms 69.31% of its industry peers.
DGX has a Quick Ratio of 1.09. 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 (0.99) than 71.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
DGX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.99%.
DGX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
DGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.58%.
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)7.99%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%11.49%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%15.19%
3.2 Future
Based on estimates for the next years, DGX will show a small growth in Earnings Per Share. The EPS will grow by 7.25% on average per year.
Based on estimates for the next years, DGX will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y9.14%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
EPS Next 5Y7.25%
Revenue Next Year10.49%
Revenue Next 2Y6.89%
Revenue Next 3Y5.83%
Revenue Next 5Y4.74%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.88, which indicates a rather expensive current valuation of DGX.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than 71.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, DGX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.05, DGX is valued on the expensive side.
70.30% of the companies in the same industry are more expensive than DGX, based on the Price/Forward Earnings ratio.
DGX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 62.38% of the companies listed in the same industry.
DGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DGX is cheaper than 73.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.32 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DGX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.87
EPS Next 2Y7.75%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 2.45, DGX pays a better dividend. On top of this DGX pays more dividend than 88.12% of the companies listed in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
On average, the dividend of DGX grows each year by 6.92%, which is quite nice.
DGX has been paying a dividend for at least 10 years, so it has a reliable track record.
DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.92%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
36.15% 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.
DP36.15%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
NYSE:DGX (10/6/2025, 1:59:08 PM)
178.592
-0.74 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change0.01%
Ins Owners0.3%
Ins Owner Change0.02%
Market Cap19.97B
Analysts75
Price Target191.4 (7.17%)
Short Float %3.97%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.98
Dividend Growth(5Y)6.92%
DP36.15%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.32%
Min EPS beat(2)0.93%
Max EPS beat(2)1.7%
EPS beat(4)4
Avg EPS beat(4)2.25%
Min EPS beat(4)0.8%
Max EPS beat(4)5.56%
EPS beat(8)7
Avg EPS beat(8)2.31%
EPS beat(12)11
Avg EPS beat(12)2.55%
EPS beat(16)15
Avg EPS beat(16)4.97%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)0.33%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)1.68%
Revenue beat(8)6
Avg Revenue beat(8)0.61%
Revenue beat(12)10
Avg Revenue beat(12)1.64%
Revenue beat(16)13
Avg Revenue beat(16)2.22%
PT rev (1m)0.36%
PT rev (3m)1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 17.05 | ||
| P/S | 1.9 | ||
| P/FCF | 16.32 | ||
| P/OCF | 11.9 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)9.46
EY5.3%
EPS(NY)10.47
Fwd EY5.86%
FCF(TTM)10.95
FCFY6.13%
OCF(TTM)15.01
OCFY8.4%
SpS94.1
BVpS64.64
TBVpS-30.06
PEG (NY)2.07
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 13.09% | ||
| ROCE | 11.09% | ||
| ROIC | 8.59% | ||
| ROICexc | 8.79% | ||
| ROICexgc | 39.43% | ||
| OM | 14.7% | ||
| PM (TTM) | 8.99% | ||
| GM | 33.23% | ||
| FCFM | 11.63% |
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%
ROICexcg growth 3Y-18.68%
ROICexcg 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-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 83.61% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 5.12 | ||
| Cash Conversion | 80.29% | ||
| Profit Quality | 129.39% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.22 |
F-Score6
WACC8.69%
ROIC/WACC0.99
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)7.99%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%11.49%
EPS Next Y9.14%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
EPS Next 5Y7.25%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%15.19%
Revenue Next Year10.49%
Revenue Next 2Y6.89%
Revenue Next 3Y5.83%
Revenue Next 5Y4.74%
EBIT growth 1Y17.29%
EBIT growth 3Y-17.38%
EBIT growth 5Y1.28%
EBIT Next Year44.72%
EBIT Next 3Y16.78%
EBIT Next 5YN/A
FCF growth 1Y39.41%
FCF growth 3Y-20.8%
FCF growth 5Y1.52%
OCF growth 1Y22.13%
OCF growth 3Y-15.78%
OCF growth 5Y1.42%