QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DGX - US74834L1008 - Common Stock
174.44 USD
-3.3 (-1.86%)
174.44 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 scores excellent on profitability, but there are some minor concerns on its financial health. DGX is not valued too expensively and it also shows a decent growth rate. 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
DGX has a Return On Assets of 5.95%. This is amongst the best in the industry. DGX outperforms 82.18% of its industry peers.
Looking at the Return On Equity, with a value of 13.27%, DGX is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.79%, DGX is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DGX is in line with the industry average of 9.21%.
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 Profit Margin of 8.88%. This is amongst the best in the industry. DGX outperforms 92.08% of its industry peers.
In the last couple of years the Profit Margin of DGX has declined.
DGX has a better Operating Margin (14.71%) than 90.10% of its industry peers.
DGX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.47%, DGX is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
DGX's Gross Margin has been stable in the last couple of years.
| 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
DGX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DGX remains at a similar level compared to 1 year ago.
DGX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DGX has a worse debt to assets ratio.
2.2 Solvency
DGX has an Altman-Z score of 3.19. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
DGX has a better Altman-Z score (3.19) than 67.33% of its industry peers.
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.
DGX has a better Debt to FCF ratio (4.07) 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.
The Debt to Equity ratio of DGX (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.02
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DGX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, DGX is doing worse than 63.37% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that DGX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, DGX is not doing good in the industry: 63.37% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
The Revenue has grown by 13.74% in the past year. This is quite good.
DGX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.02% yearly.
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
Based on estimates for the next years, DGX will show a small growth in Earnings Per Share. The EPS will grow by 7.60% on average per year.
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.
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
With a Price/Earnings ratio of 17.87, DGX is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 76.24% 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 27.19.
Based on the Price/Forward Earnings ratio of 16.65, the valuation of DGX can be described as correct.
73.27% of the companies in the same industry are more expensive than DGX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DGX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
DGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGX is cheaper than 66.34% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 77.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 11.6 |
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)1.82
PEG (5Y)2.72
EPS Next 2Y7.78%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
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 1.94, DGX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of DGX is nicely growing with an annual growth rate of 6.92%!
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
36.03% 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%
174.44
-3.3 (-1.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.25%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change-1.47%
Market Cap19.40B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target201.37 (15.44%)
Short Float %3.82%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 | 17.87 | ||
| Fwd PE | 16.65 | ||
| P/S | 1.79 | ||
| P/FCF | 13.93 | ||
| P/OCF | 10.29 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)9.76
EY5.6%
EPS(NY)10.48
Fwd EY6.01%
FCF(TTM)12.52
FCFY7.18%
OCF(TTM)16.95
OCFY9.71%
SpS97.54
BVpS65.25
TBVpS-29.71
PEG (NY)1.82
PEG (5Y)2.72
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 | 3.19 |
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.
Can you provide the valuation status for QUEST DIAGNOSTICS INC?
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.
Can you provide the PE and PB ratios for DGX stock?
The Price/Earnings (PE) ratio for QUEST DIAGNOSTICS INC (DGX) is 17.87 and the Price/Book (PB) ratio is 2.67.
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 9.8% in the next year.