QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
179.595 USD
+0.09 (+0.05%)
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. While DGX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DGX has a decent growth rate and is not valued too expensively. Finally 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.
DGX had positive earnings in each of the past 5 years.
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.
The Average Return On Invested Capital over the past 3 years for DGX is in line with the industry average of 9.39%.
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 91.00% of its industry peers.
DGX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.71%, DGX belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
DGX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.47%, DGX is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DGX is creating some value.
Compared to 1 year ago, DGX has about the same amount of shares outstanding.
Compared to 5 years ago, DGX has less shares outstanding
Compared to 1 year ago, DGX has a worse debt to assets ratio.
2.2 Solvency
DGX has an Altman-Z score of 3.21. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
DGX has a better Altman-Z score (3.21) than 68.00% 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.
With a decent Debt to FCF ratio value of 4.07, DGX is doing good in the industry, outperforming 73.00% 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.
DGX has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.01
WACC8.72%
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 65.00% 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.
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.
DGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.74%.
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
Based on estimates for the next years, DGX will show a small growth in Earnings Per Share. The EPS will grow by 7.50% on average per year.
Based on estimates for the next years, DGX will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y9.8%
EPS Next 2Y7.76%
EPS Next 3Y8.13%
EPS Next 5Y7.5%
Revenue Next Year11.72%
Revenue Next 2Y7.54%
Revenue Next 3Y6.29%
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.
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
Based on the Price/Earnings ratio of 18.40, the valuation of DGX can be described as rather expensive.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than 74.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DGX to the average of the S&P500 Index (26.06), we can say DGX is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.15 indicates a rather expensive valuation of DGX.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of DGX to the average of the S&P500 Index (32.73), we can say DGX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 17.15 |
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.
DGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DGX is cheaper than 77.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DGX may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)2.8
EPS Next 2Y7.76%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.81%.
DGX's Dividend Yield is rather good when compared to the industry average which is at 2.55. DGX pays more dividend than 88.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, DGX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 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.
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 2Y7.76%
EPS Next 3Y8.13%
NYSE:DGX (11/10/2025, 11:00:10 AM)
179.595
+0.09 (+0.05%)
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-0.55%
Ins Owners0.3%
Ins Owner Change-0.65%
Market Cap20.08B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.6 (11.7%)
Short Float %3.55%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)5.18%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 17.15 | ||
| P/S | 1.85 | ||
| P/FCF | 14.42 | ||
| P/OCF | 10.65 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.74 |
EPS(TTM)9.76
EY5.43%
EPS(NY)10.47
Fwd EY5.83%
FCF(TTM)12.46
FCFY6.94%
OCF(TTM)16.86
OCFY9.39%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)1.88
PEG (5Y)2.8
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 | 3.21 |
F-Score8
WACC8.72%
ROIC/WACC1.01
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 2Y7.76%
EPS Next 3Y8.13%
EPS Next 5Y7.5%
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 3Y6.29%
Revenue Next 5Y4.83%
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 9.8% 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%.