QUEST DIAGNOSTICS INC (DGX) Fundamental Analysis & Valuation
NYSE:DGX • US74834L1008
Current stock price
193.37 USD
-0.83 (-0.43%)
Last:
This DGX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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
- The Return On Assets of DGX (6.12%) is better than 82.00% of its industry peers.
- Looking at the Return On Equity, with a value of 13.85%, DGX belongs to the top of the industry, outperforming 81.00% of the companies in the same industry.
- DGX has a Return On Invested Capital of 8.89%. This is in the better half of the industry: DGX outperforms 79.00% 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 8.40%.
- The last Return On Invested Capital (8.89%) for DGX is above the 3 year average (8.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.85% | ||
| ROIC | 8.89% |
ROA(3y)5.84%
ROA(5y)7.89%
ROE(3y)13.34%
ROE(5y)17.37%
ROIC(3y)8.23%
ROIC(5y)10.17%
1.3 Margins
- DGX's Profit Margin of 9.04% is amongst the best of the industry. DGX outperforms 94.00% of its industry peers.
- DGX's Profit Margin has declined in the last couple of years.
- DGX has a better Operating Margin (14.94%) than 92.00% of its industry peers.
- In the last couple of years the Operating Margin of DGX has declined.
- The Gross Margin of DGX (33.26%) is better than 67.00% of its industry peers.
- In the last couple of years the Gross Margin of DGX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.94% | ||
| PM (TTM) | 9.04% | ||
| GM | 33.26% |
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%
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.
- Compared to 1 year ago, DGX has less shares outstanding
- The number of shares outstanding for DGX has been reduced compared to 5 years ago.
- Compared to 1 year ago, DGX has an improved debt to assets ratio.
2.2 Solvency
- DGX has an Altman-Z score of 3.28. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of DGX (3.28) is better than 70.00% of its industry peers.
- DGX has a debt to FCF ratio of 4.27. This is a neutral value as DGX would need 4.27 years to pay back of all of its debts.
- DGX has a better Debt to FCF ratio (4.27) than 63.00% of its industry peers.
- DGX has a Debt/Equity ratio of 0.70. This is a neutral value indicating DGX is somewhat dependend on debt financing.
- DGX has a Debt to Equity ratio of 0.70. This is comparable to the rest of the industry: DGX outperforms 51.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.04
WACC8.52%
2.3 Liquidity
- DGX has a Current Ratio of 1.18. 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 Current ratio of 1.18. This is comparable to the rest of the industry: DGX outperforms 41.00% of its industry peers.
- A Quick Ratio of 1.08 indicates that DGX should not have too much problems paying its short term obligations.
- The Quick ratio of DGX (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.08 |
3. DGX Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 10.34% over the past year.
- Measured over the past years, DGX shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.45% on average per year.
- DGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
- The Revenue has been growing slightly by 3.18% on average over the past years.
EPS 1Y (TTM)10.34%
EPS 3Y-0.24%
EPS 5Y-2.45%
EPS Q2Q%13.12%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y3.74%
Revenue growth 5Y3.18%
Sales Q2Q%9.16%
3.2 Future
- Based on estimates for the next years, DGX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% on average per year.
- Based on estimates for the next years, DGX will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y8.21%
EPS Next 2Y8.33%
EPS Next 3Y8.64%
EPS Next 5Y8.36%
Revenue Next Year6.96%
Revenue Next 2Y5.35%
Revenue Next 3Y5.07%
Revenue Next 5Y3.9%
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.
4. DGX Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.07, 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 71.00% 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 26.77.
- A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of DGX.
- 65.00% 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 21.75.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 16.73 |
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 the industry average as 71.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.14 | ||
| EV/EBITDA | 11.83 |
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)2.32
PEG (5Y)N/A
EPS Next 2Y8.33%
EPS Next 3Y8.64%
5. DGX Dividend Analysis
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 0.46. DGX pays more dividend than 91.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DGX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
- The dividend of DGX is nicely growing with an annual growth rate of 7.42%!
- 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)7.42%
Div Incr Years14
Div Non Decr Years21
5.3 Sustainability
- 35.00% 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.
DP35%
EPS Next 2Y8.33%
EPS Next 3Y8.64%
DGX Fundamentals: All Metrics, Ratios and Statistics
NYSE:DGX (5/1/2026, 12:58:10 PM)
193.37
-0.83 (-0.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength45.96
Industry Growth88.2
Earnings (Last)04-21 2026-04-21/bmo
Earnings (Next)07-20 2026-07-20/bmo
Inst Owners101.42%
Inst Owner Change-0.02%
Ins Owners0.32%
Ins Owner Change2.4%
Market Cap21.40B
Revenue(TTM)11.28B
Net Income(TTM)1.02B
Analysts75.83
Price Target224.8 (16.25%)
Short Float %3.22%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend3.19
Dividend Growth(5Y)7.42%
DP35%
Div Incr Years14
Div Non Decr Years21
Ex-Date04-06 2026-04-06 (0.86)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.52%
Min EPS beat(2)1.51%
Max EPS beat(2)5.53%
EPS beat(4)4
Avg EPS beat(4)2.7%
Min EPS beat(4)0.93%
Max EPS beat(4)5.53%
EPS beat(8)7
Avg EPS beat(8)2.3%
EPS beat(12)11
Avg EPS beat(12)2.4%
EPS beat(16)15
Avg EPS beat(16)2.65%
Revenue beat(2)2
Avg Revenue beat(2)1.1%
Min Revenue beat(2)0.9%
Max Revenue beat(2)1.29%
Revenue beat(4)4
Avg Revenue beat(4)1.1%
Min Revenue beat(4)0.33%
Max Revenue beat(4)1.88%
Revenue beat(8)6
Avg Revenue beat(8)0.73%
Revenue beat(12)10
Avg Revenue beat(12)0.96%
Revenue beat(16)14
Avg Revenue beat(16)1.72%
PT rev (1m)0%
PT rev (3m)9.32%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)2.88%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.9 | ||
| P/FCF | 16.14 | ||
| P/OCF | 11.57 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)10.14
EY5.24%
EPS(NY)11.56
Fwd EY5.98%
FCF(TTM)11.98
FCFY6.2%
OCF(TTM)16.71
OCFY8.64%
SpS101.9
BVpS66.55
TBVpS-31.36
PEG (NY)2.32
PEG (5Y)N/A
Graham Number123.223 (-36.28%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 13.85% | ||
| ROCE | 11.62% | ||
| ROIC | 8.89% | ||
| ROICexc | 9.14% | ||
| ROICexgc | 39.45% | ||
| OM | 14.94% | ||
| PM (TTM) | 9.04% | ||
| GM | 33.26% | ||
| FCFM | 11.76% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.27 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 90.81% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 81.79% | ||
| Profit Quality | 130% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 3.28 |
F-Score8
WACC8.52%
ROIC/WACC1.04
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)10.34%
EPS 3Y-0.24%
EPS 5Y-2.45%
EPS Q2Q%13.12%
EPS Next Y8.21%
EPS Next 2Y8.33%
EPS Next 3Y8.64%
EPS Next 5Y8.36%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y3.74%
Revenue growth 5Y3.18%
Sales Q2Q%9.16%
Revenue Next Year6.96%
Revenue Next 2Y5.35%
Revenue Next 3Y5.07%
Revenue Next 5Y3.9%
EBIT growth 1Y16.29%
EBIT growth 3Y2.79%
EBIT growth 5Y-3.68%
EBIT Next Year35.75%
EBIT Next 3Y14.68%
EBIT Next 5YN/A
FCF growth 1Y40.02%
FCF growth 3Y1.13%
FCF growth 5Y-3.05%
OCF growth 1Y38.89%
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.
What is the valuation status of QUEST DIAGNOSTICS INC (DGX) stock?
ChartMill assigns a valuation rating of 5 / 10 to QUEST DIAGNOSTICS INC (DGX). This can be considered as Fairly Valued.
What is the profitability of DGX stock?
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 19.07 and the Price/Book (PB) ratio is 2.91.
Is the dividend of QUEST DIAGNOSTICS INC sustainable?
The dividend rating of QUEST DIAGNOSTICS INC (DGX) is 7 / 10 and the dividend payout ratio is 35%.