QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
176.51 USD
-1.75 (-0.98%)
176.51 USD
0 (0%)
DGX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 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 is not valued too expensively and it also shows a decent growth rate. Finally DGX also has an excellent dividend rating. With these ratings, DGX could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year DGX was profitable.
In the past year DGX had a positive cash flow from operations.
Each year in the past 5 years DGX has been profitable.
In the past 5 years DGX always reported a positive cash flow from operatings.
1.2 Ratios
DGX has a better Return On Assets (5.95%) than 84.00% of its industry peers.
DGX's Return On Equity of 13.27% is fine compared to the rest of the industry. DGX outperforms 79.00% of its industry peers.
DGX has a Return On Invested Capital of 8.79%. This is in the better half of the industry: DGX outperforms 76.00% of its industry peers.
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 9.42%.
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 90.00% 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 88.00% of its industry peers.
DGX's Operating Margin has declined in the last couple of years.
DGX has a better Gross Margin (33.47%) than 62.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DGX is creating some value.
DGX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DGX has less shares outstanding
DGX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.20 indicates that DGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.20, DGX is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
The Debt to FCF ratio of DGX is 4.07, which is a neutral value as it means it would take DGX, 4.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.07, DGX is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that DGX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, DGX perfoms like the industry average, outperforming 51.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.2 |
ROIC/WACC1
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DGX should not have too much problems paying its short term obligations.
DGX has a Current ratio of 1.13. This is in the lower half of the industry: DGX underperforms 65.00% 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 68.00% 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.
The Revenue has grown by 13.74% in the past year. This is quite good.
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
DGX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.25% yearly.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y9.17%
EPS Next 2Y7.61%
EPS Next 3Y7.72%
EPS Next 5Y7.25%
Revenue Next Year10.53%
Revenue Next 2Y6.95%
Revenue Next 3Y5.93%
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
DGX is valuated rather expensively with a Price/Earnings ratio of 18.09.
DGX's Price/Earnings ratio is a bit cheaper when compared to the industry. DGX is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DGX to the average of the S&P500 Index (26.13), we can say DGX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.90, the valuation of DGX can be described as correct.
Based on the Price/Forward Earnings ratio, DGX is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, DGX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGX is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 77.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 11.68 |
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)1.97
PEG (5Y)2.75
EPS Next 2Y7.61%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, DGX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, DGX pays a better dividend. On top of this DGX pays more dividend than 88.00% of the companies listed in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| 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 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)6.92%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
DGX pays out 36.03% of its income as dividend. This is a 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 2Y7.61%
EPS Next 3Y7.72%
176.51
-1.75 (-0.98%)
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 Change-0.45%
Ins Owners0.3%
Ins Owner Change-0.08%
Market Cap19.74B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.6 (13.65%)
Short Float %3.55%
Short Ratio4.44
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)4.81%
PT rev (3m)6.53%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 16.9 | ||
| P/S | 1.82 | ||
| P/FCF | 14.17 | ||
| P/OCF | 10.47 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)9.76
EY5.53%
EPS(NY)10.44
Fwd EY5.92%
FCF(TTM)12.46
FCFY7.06%
OCF(TTM)16.86
OCFY9.55%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)1.97
PEG (5Y)2.75
Graham Number119.39
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 | 3.2 |
F-Score8
WACC8.76%
ROIC/WACC1
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 Y9.17%
EPS Next 2Y7.61%
EPS Next 3Y7.72%
EPS Next 5Y7.25%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%13.18%
Revenue Next Year10.53%
Revenue Next 2Y6.95%
Revenue Next 3Y5.93%
Revenue Next 5Y4.74%
EBIT growth 1Y21%
EBIT growth 3Y-17.38%
EBIT growth 5Y1.28%
EBIT Next Year44.72%
EBIT Next 3Y16.78%
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 5 / 10 to DGX.
What is the valuation status for DGX stock?
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.
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 9.17% 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%.