QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
178.84 USD
+2.89 (+1.64%)
178.84 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DGX. DGX was compared to 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 has a decent growth rate and is not valued too expensively. DGX also has an excellent dividend rating. These ratings could make DGX a good candidate 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.
DGX had positive earnings in each of the past 5 years.
DGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGX's Return On Assets of 5.95% is amongst the best of the industry. DGX outperforms 84.00% of its industry peers.
With a decent Return On Equity value of 13.27%, DGX is doing good in the industry, outperforming 79.00% 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 76.00% of the companies in the same industry.
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 9.48%.
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
Looking at the Profit Margin, with a value of 8.88%, DGX belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
DGX's Profit Margin has declined in the last couple of years.
DGX's Operating Margin of 14.71% is amongst the best of the industry. DGX outperforms 88.00% of its industry peers.
In the last couple of years the Operating Margin of DGX has declined.
DGX has a Gross Margin of 33.47%. This is in the better half of the industry: DGX outperforms 62.00% 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
DGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DGX has about the same amount of shares outstanding.
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
An Altman-Z score of 3.19 indicates that DGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, DGX is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
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.
The Debt to FCF ratio of DGX (4.07) is better than 72.00% 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
WACC8.8%
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 worse Current ratio (1.13) than 66.00% of its industry peers.
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: 69.00% 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.
Measured over the past 5 years, DGX shows a small growth in Earnings Per Share. The EPS has been growing by 6.58% on average per year.
Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 13.74% in the last year.
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
The Earnings Per Share is expected to grow by 7.25% on average over the next years.
Based on estimates for the next years, DGX will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
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
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
DGX is valuated rather expensively with a Price/Earnings ratio of 18.32.
DGX's Price/Earnings ratio is a bit cheaper when compared to the industry. DGX is cheaper than 73.00% of the companies in the same industry.
DGX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
DGX is valuated rather expensively with a Price/Forward Earnings ratio of 17.12.
Based on the Price/Forward Earnings ratio, DGX is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
DGX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
DGX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DGX is cheaper than 66.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than 77.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 11.56 |
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.
The decent profitability rating of DGX may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)2.79
EPS Next 2Y7.61%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.82%.
DGX's Dividend Yield is rather good when compared to the industry average which is at 2.49. DGX pays more dividend than 89.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, DGX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of DGX grows each year by 6.92%, which is quite nice.
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
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 2Y7.61%
EPS Next 3Y7.72%
178.84
+2.89 (+1.64%)
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 Cap20.00B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.6 (12.17%)
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 | 18.32 | ||
| Fwd PE | 17.12 | ||
| P/S | 1.84 | ||
| P/FCF | 14.36 | ||
| P/OCF | 10.61 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.56 |
EPS(TTM)9.76
EY5.46%
EPS(NY)10.44
Fwd EY5.84%
FCF(TTM)12.46
FCFY6.97%
OCF(TTM)16.86
OCFY9.43%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)2
PEG (5Y)2.79
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 | 3.19 |
F-Score8
WACC8.8%
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%.