QUEST DIAGNOSTICS INC (DGX) Fundamental Analysis & Valuation

NYSE:DGX • US74834L1008

Current stock price

196.46 USD
+0.38 (+0.19%)
At close:
196.46 USD
0 (0%)
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This DGX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. DGX Profitability Analysis

1.1 Basic Checks

  • In the past year DGX was profitable.
  • DGX had a positive operating cash flow in the past year.
  • DGX had positive earnings in each of the past 5 years.
  • In the past 5 years DGX always reported a positive cash flow from operatings.
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

  • With an excellent Return On Assets value of 6.09%, DGX belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
  • DGX has a Return On Equity of 13.78%. This is in the better half of the industry: DGX outperforms 80.00% of its industry peers.
  • DGX has a better Return On Invested Capital (8.98%) than 77.00% of its industry peers.
  • DGX had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 8.86%.
  • The last Return On Invested Capital (8.98%) for DGX is above the 3 year average (8.23%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.09%
ROE 13.78%
ROIC 8.98%
ROA(3y)5.84%
ROA(5y)7.89%
ROE(3y)13.34%
ROE(5y)17.37%
ROIC(3y)8.23%
ROIC(5y)10.17%
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

  • DGX's Profit Margin of 8.95% is amongst the best of the industry. DGX outperforms 93.00% of its industry peers.
  • In the last couple of years the Profit Margin of DGX has declined.
  • DGX has a better Operating Margin (14.83%) than 92.00% of its industry peers.
  • In the last couple of years the Operating Margin of DGX has declined.
  • With a decent Gross Margin value of 33.32%, DGX is doing good in the industry, outperforming 65.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of DGX has declined.
Industry RankSector Rank
OM 14.83%
PM (TTM) 8.95%
GM 33.32%
OM growth 3Y-0.92%
OM growth 5Y-6.64%
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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5

2. DGX Health Analysis

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 less shares outstanding
  • Compared to 5 years ago, DGX has less shares outstanding
  • Compared to 1 year ago, DGX has an improved debt to assets ratio.
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 3.31. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.31, DGX is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 4.17, DGX is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.72 indicates that DGX is somewhat dependend on debt financing.
  • The Debt to Equity ratio of DGX (0.72) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.17
Altman-Z 3.31
ROIC/WACC1.1
WACC8.17%
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

  • DGX has a Current 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 Current ratio of 1.04. This is in the lower half of the industry: DGX underperforms 68.00% 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 Quick ratio of 0.96. This is in the lower half of the industry: DGX underperforms 69.00% 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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5

3. DGX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.20% over the past year.
  • Measured over the past years, DGX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.45% on average per year.
  • Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 11.78% in the last year.
  • DGX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.18% yearly.
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

  • Based on estimates for the next years, DGX will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
  • DGX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y9.04%
EPS Next 2Y8.28%
EPS Next 3Y8.55%
EPS Next 5Y7.53%
Revenue Next Year6.96%
Revenue Next 2Y5.35%
Revenue Next 3Y5.07%
Revenue Next 5Y4.3%

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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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. DGX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.95, which indicates a rather expensive current valuation of DGX.
  • Compared to the rest of the industry, the Price/Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 68.00% of the companies listed in the same industry.
  • DGX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.50.
  • DGX is valuated rather expensively with a Price/Forward Earnings ratio of 18.29.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 63.00% of the companies listed in the same industry.
  • DGX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.95
Fwd PE 18.29
DGX Price Earnings VS Forward Price EarningsDGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DGX is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than 72.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.88
EV/EBITDA 12.14
DGX Per share dataDGX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of DGX may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)N/A
EPS Next 2Y8.28%
EPS Next 3Y8.55%

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7

5. DGX Dividend Analysis

5.1 Amount

  • DGX has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
  • DGX's Dividend Yield is rather good when compared to the industry average which is at 0.50. DGX pays more dividend than 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, DGX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.77%

5.2 History

  • The dividend of DGX is nicely growing with an annual growth rate of 7.42%!
  • DGX has been paying a dividend for at least 10 years, so it has 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)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

  • 35.73% of the earnings are spent on dividend by DGX. This is a low number and 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 2Y8.28%
EPS Next 3Y8.55%
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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DGX Fundamentals: All Metrics, Ratios and Statistics

QUEST DIAGNOSTICS INC

NYSE:DGX (3/25/2026, 5:34:28 PM)

After market: 196.46 0 (0%)

196.46

+0.38 (+0.19%)

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 Owners100.18%
Inst Owner Change1.21%
Ins Owners0.31%
Ins Owner Change2.28%
Market Cap21.59B
Revenue(TTM)11.04B
Net Income(TTM)988.00M
Analysts75.83
Price Target220.47 (12.22%)
Short Float %3.56%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 1.77%
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)8.84%
PT rev (3m)9.88%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)2.17%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)3.34%
Valuation
Industry RankSector Rank
PE 19.95
Fwd PE 18.29
P/S 1.96
P/FCF 15.88
P/OCF 11.44
P/B 3.01
P/tB N/A
EV/EBITDA 12.14
EPS(TTM)9.85
EY5.01%
EPS(NY)10.74
Fwd EY5.47%
FCF(TTM)12.37
FCFY6.3%
OCF(TTM)17.17
OCFY8.74%
SpS100.44
BVpS65.26
TBVpS-31.05
PEG (NY)2.21
PEG (5Y)N/A
Graham Number120.26
Profitability
Industry RankSector Rank
ROA 6.09%
ROE 13.78%
ROCE 11.74%
ROIC 8.98%
ROICexc 9.25%
ROICexgc 42.49%
OM 14.83%
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)8.23%
ROIC(5y)10.17%
ROICexc(3y)8.58%
ROICexc(5y)10.69%
ROICexgc(3y)37.61%
ROICexgc(5y)44.46%
ROCE(3y)10.9%
ROCE(5y)13.44%
ROICexgc growth 3Y-1.73%
ROICexgc growth 5Y-3.34%
ROICexc growth 3Y-4.35%
ROICexc growth 5Y-7.45%
OM growth 3Y-0.92%
OM growth 5Y-6.64%
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 2.34
Cap/Depr 92.46%
Cap/Sales 4.78%
Interest Coverage 5.85
Cash Conversion 85.46%
Profit Quality 137.55%
Current Ratio 1.04
Quick Ratio 0.96
Altman-Z 3.31
F-Score8
WACC8.17%
ROIC/WACC1.1
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 Y9.04%
EPS Next 2Y8.28%
EPS Next 3Y8.55%
EPS Next 5Y7.53%
Revenue 1Y (TTM)11.78%
Revenue growth 3Y3.74%
Revenue growth 5Y3.18%
Sales Q2Q%7.06%
Revenue Next Year6.96%
Revenue Next 2Y5.35%
Revenue Next 3Y5.07%
Revenue Next 5Y4.3%
EBIT growth 1Y16.26%
EBIT growth 3Y2.79%
EBIT growth 5Y-3.68%
EBIT Next Year36.32%
EBIT Next 3Y14.69%
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 Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 6 / 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 19.95 and the Price/Book (PB) ratio is 3.01.


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 9.04% in the next year.