QUEST DIAGNOSTICS INC (DGX) Fundamental Analysis & Valuation

NYSE:DGX • US74834L1008

Current stock price

195.51 USD
-2.64 (-1.33%)
At close:
195.51 USD
0 (0%)
After Hours:

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

  • DGX had positive earnings in the past year.
  • DGX had a positive operating cash flow in the past year.
  • In the past 5 years DGX has always been profitable.
  • Each year in the past 5 years DGX had a positive operating cash flow.
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

  • DGX has a Return On Assets of 6.09%. This is amongst the best in the industry. DGX outperforms 81.00% of its industry peers.
  • 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.
  • With a decent Return On Invested Capital value of 8.98%, DGX is doing good in the industry, outperforming 77.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DGX is in line with the industry average of 8.74%.
  • The 3 year average ROIC (8.23%) for DGX is below the current ROIC(8.98%), indicating increased profibility in the last year.
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 has a better Profit Margin (8.95%) than 92.00% of its industry peers.
  • In the last couple of years the Profit Margin of DGX has declined.
  • DGX has a Operating Margin of 14.83%. This is amongst the best in the industry. DGX outperforms 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 66.00% 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

  • DGX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • DGX has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, DGX has less shares outstanding
  • The debt/assets ratio for DGX has been reduced compared to a year ago.
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

  • An Altman-Z score of 3.31 indicates that DGX is not in any danger for 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.
  • DGX has a debt to FCF ratio of 4.17. This is a neutral value as DGX would need 4.17 years to pay back of all of its debts.
  • DGX has a Debt to FCF ratio of 4.17. This is in the better half of the industry: DGX outperforms 66.00% 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.
  • With a Debt to Equity ratio value of 0.72, DGX perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 4.17
Altman-Z 3.31
ROIC/WACC1.09
WACC8.23%
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.
  • Looking at the Current ratio, with a value of 1.04, DGX is doing worse than 68.00% of the companies in the same industry.
  • A Quick Ratio of 0.96 indicates that DGX may have some problems paying its short term obligations.
  • The Quick ratio of DGX (0.96) is worse than 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DGX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.20% over the past year.
  • The Earnings Per Share has been decreasing by -2.45% on average over the past years.
  • The Revenue has grown by 11.78% 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 3.18% on average per year.
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

  • DGX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.53% yearly.
  • The Revenue is expected to grow by 4.30% on average over the next years.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

  • Based on the Price/Earnings ratio of 19.85, the valuation of DGX can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 67.00% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of DGX to the average of the S&P500 Index (24.89), we can say DGX is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 18.20, DGX is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, DGX is valued a bit cheaper than the industry average as 63.00% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. DGX is around the same levels.
Industry RankSector Rank
PE 19.85
Fwd PE 18.2
DGX Price Earnings VS Forward Price EarningsDGX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 63.00% of the companies in the same industry are more expensive than DGX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.81
EV/EBITDA 12.11
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 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)2.2
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 1.74%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.50, DGX pays a better dividend. On top of this DGX pays more dividend than 90.00% of the companies listed in the same industry.
  • DGX's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.74%

5.2 History

  • On average, the dividend of DGX grows each year by 7.42%, which is quite nice.
  • DGX has paid a dividend for at least 10 years, which is 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

  • DGX pays out 35.73% of its income as dividend. This is a 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.
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 (3/27/2026, 8:12:01 PM)

After market: 195.51 0 (0%)

195.51

-2.64 (-1.33%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-10
Earnings (Next)04-21
Inst Owners100.18%
Inst Owner Change1.21%
Ins Owners0.31%
Ins Owner Change2.28%
Market Cap21.48B
Revenue(TTM)11.04B
Net Income(TTM)988.00M
Analysts75.83
Price Target220.47 (12.77%)
Short Float %3.56%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 1.74%
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)0%
PT rev (3m)9.48%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)2.17%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)3.34%
Valuation
Industry RankSector Rank
PE 19.85
Fwd PE 18.2
P/S 1.95
P/FCF 15.81
P/OCF 11.39
P/B 3
P/tB N/A
EV/EBITDA 12.11
EPS(TTM)9.85
EY5.04%
EPS(NY)10.74
Fwd EY5.49%
FCF(TTM)12.37
FCFY6.33%
OCF(TTM)17.17
OCFY8.78%
SpS100.44
BVpS65.26
TBVpS-31.05
PEG (NY)2.2
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
WACC8.23%
ROIC/WACC1.09
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 19.85 and the Price/Book (PB) ratio is 3.


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.