QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DGX - US74834L1008 - Common Stock
182.51 USD
-1.67 (-0.91%)
182.51 USD
0 (0%)
Overall DGX gets a fundamental rating of 5 out of 10. We evaluated DGX against 100 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. These ratings could make DGX a good candidate 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.
Each year in the past 5 years DGX has been profitable.
Each year in the past 5 years DGX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DGX (5.95%) is better than 82.18% of its industry peers.
The Return On Equity of DGX (13.27%) is better than 79.21% of its industry peers.
DGX has a better Return On Invested Capital (8.79%) than 77.23% 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 9.42%.
The 3 year average ROIC (8.77%) for DGX is below the current ROIC(8.79%), indicating increased profibility in the last year.
| 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.
The Operating Margin of DGX (14.71%) is better than 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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DGX is still creating some value.
The number of shares outstanding for DGX remains at a similar level compared to 1 year ago.
The number of shares outstanding for DGX has been reduced compared to 5 years ago.
DGX has a worse debt/assets ratio than last year.
2.2 Solvency
DGX has an Altman-Z score of 3.23. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DGX (3.23) is better than 66.34% 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.
Looking at the Debt to FCF ratio, with a value of 4.07, DGX is in the better half of the industry, outperforming 70.30% of the companies in the same industry.
DGX has a Debt/Equity ratio of 0.71. This is a neutral value indicating DGX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, DGX perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.04
WACC8.43%
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.
Looking at the Current ratio, with a value of 1.13, DGX is doing worse than 62.38% 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.
Looking at the Quick ratio, with a value of 1.04, DGX is doing worse than 63.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.41%, which is quite good.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 13.74% in the last year.
The Revenue has been growing slightly by 5.02% on average over the past years.
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
DGX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.60% yearly.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y9.8%
EPS Next 2Y7.77%
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 18.70, which indicates a rather expensive current valuation of DGX.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than the industry average as 76.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.49, DGX is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.42, which indicates a rather expensive current valuation of DGX.
66.34% of the companies in the same industry are more expensive than DGX, based on the Price/Forward Earnings ratio.
DGX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
DGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGX is cheaper than 65.35% 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 75.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 11.85 |
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)1.91
PEG (5Y)2.84
EPS Next 2Y7.77%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 2.55, DGX pays a better dividend. On top of this DGX pays more dividend than 90.10% of the companies listed in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 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.
The dividend of DGX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP36.03%
EPS Next 2Y7.77%
EPS Next 3Y8.15%
182.51
-1.67 (-0.91%)
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 Change6.98%
Ins Owners0.3%
Ins Owner Change-1.47%
Market Cap20.30B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.65 (9.94%)
Short Float %3.88%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)0.03%
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)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.42 | ||
| P/S | 1.87 | ||
| P/FCF | 14.57 | ||
| P/OCF | 10.77 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)9.76
EY5.35%
EPS(NY)10.48
Fwd EY5.74%
FCF(TTM)12.52
FCFY6.86%
OCF(TTM)16.95
OCFY9.28%
SpS97.54
BVpS65.25
TBVpS-29.71
PEG (NY)1.91
PEG (5Y)2.84
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 | 3.23 |
F-Score8
WACC8.43%
ROIC/WACC1.04
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 2Y7.77%
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%.