QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
180.16 USD
-0.46 (-0.25%)
180.2 USD
+0.04 (+0.02%)
Overall DGX gets a fundamental rating of 5 out of 10. We evaluated DGX against 101 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. Finally DGX also has an excellent dividend rating.
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.
Each year in the past 5 years DGX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.92%, DGX belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
DGX has a Return On Equity of 13.09%. This is amongst the best in the industry. DGX outperforms 80.20% of its industry peers.
DGX has a Return On Invested Capital of 8.59%. This is in the better half of the industry: DGX outperforms 75.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DGX is in line with the industry average of 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 13.09% | ||
| ROIC | 8.59% |
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's Profit Margin of 8.99% is amongst the best of the industry. DGX outperforms 91.09% of its industry peers.
In the last couple of years the Profit Margin of DGX has declined.
DGX has a better Operating Margin (14.70%) than 87.13% of its industry peers.
In the last couple of years the Operating Margin of DGX has declined.
DGX's Gross Margin of 33.23% is fine compared to the rest of the industry. DGX outperforms 62.38% 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 | 14.7% | ||
| PM (TTM) | 8.99% | ||
| GM | 33.23% |
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.
The number of shares outstanding for DGX has been reduced compared to 5 years ago.
The debt/assets ratio for DGX is higher compared to a year ago.
2.2 Solvency
DGX has an Altman-Z score of 3.22. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
DGX has a better Altman-Z score (3.22) than 66.34% of its industry peers.
The Debt to FCF ratio of DGX is 4.63, which is a neutral value as it means it would take DGX, 4.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DGX (4.63) is better than 69.31% 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.
DGX's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. DGX outperforms 48.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.03
WACC8.3%
2.3 Liquidity
DGX has a Current Ratio of 1.09. 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 1.09, DGX is doing worse than 68.32% of the companies in the same industry.
DGX has a Quick Ratio of 1.09. This is a bad value and indicates that DGX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, DGX is not doing good in the industry: 70.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.99% 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.
Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 12.58% in the last year.
The Revenue has been growing slightly by 5.02% on average over the past years.
EPS 1Y (TTM)7.99%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%11.49%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%15.19%
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 7.25% on average per year.
Based on estimates for the next years, DGX will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y9.14%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
EPS Next 5Y7.25%
Revenue Next Year10.49%
Revenue Next 2Y6.89%
Revenue Next 3Y5.83%
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.
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
A Price/Earnings ratio of 19.04 indicates a rather expensive valuation of DGX.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than 72.28% 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 27.20.
A Price/Forward Earnings ratio of 17.20 indicates a rather expensive valuation of DGX.
DGX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGX is cheaper than 66.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, DGX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGX is valued a bit cheaper than 64.36% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 72.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 12.2 |
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)2.08
PEG (5Y)2.9
EPS Next 2Y7.75%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 2.43, DGX pays a better dividend. On top of this DGX pays more dividend than 88.12% of the companies listed in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of DGX grows each year by 6.92%, 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)6.92%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
DGX pays out 36.15% 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.
DP36.15%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
180.16
-0.46 (-0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change-3.32%
Ins Owners0.31%
Ins Owner Change-3.68%
Market Cap20.15B
Analysts75
Price Target191.4 (6.24%)
Short Float %3.82%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend2.98
Dividend Growth(5Y)6.92%
DP36.15%
Div Incr Years13
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.32%
Min EPS beat(2)0.93%
Max EPS beat(2)1.7%
EPS beat(4)4
Avg EPS beat(4)2.25%
Min EPS beat(4)0.8%
Max EPS beat(4)5.56%
EPS beat(8)7
Avg EPS beat(8)2.31%
EPS beat(12)11
Avg EPS beat(12)2.55%
EPS beat(16)15
Avg EPS beat(16)4.97%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)0.33%
Revenue beat(4)3
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)1.68%
Revenue beat(8)6
Avg Revenue beat(8)0.61%
Revenue beat(12)10
Avg Revenue beat(12)1.64%
Revenue beat(16)13
Avg Revenue beat(16)2.22%
PT rev (1m)0.36%
PT rev (3m)1.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 17.2 | ||
| P/S | 1.91 | ||
| P/FCF | 16.46 | ||
| P/OCF | 12.01 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)9.46
EY5.25%
EPS(NY)10.47
Fwd EY5.81%
FCF(TTM)10.95
FCFY6.08%
OCF(TTM)15.01
OCFY8.33%
SpS94.1
BVpS64.64
TBVpS-30.06
PEG (NY)2.08
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 13.09% | ||
| ROCE | 11.09% | ||
| ROIC | 8.59% | ||
| ROICexc | 8.79% | ||
| ROICexgc | 39.43% | ||
| OM | 14.7% | ||
| PM (TTM) | 8.99% | ||
| GM | 33.23% | ||
| FCFM | 11.63% |
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%
ROICexcg growth 3Y-18.68%
ROICexcg 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-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 83.61% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 5.12 | ||
| Cash Conversion | 80.29% | ||
| Profit Quality | 129.39% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.22 |
F-Score6
WACC8.3%
ROIC/WACC1.03
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)7.99%
EPS 3Y-14.1%
EPS 5Y6.58%
EPS Q2Q%11.49%
EPS Next Y9.14%
EPS Next 2Y7.75%
EPS Next 3Y7.93%
EPS Next 5Y7.25%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%15.19%
Revenue Next Year10.49%
Revenue Next 2Y6.89%
Revenue Next 3Y5.83%
Revenue Next 5Y4.74%
EBIT growth 1Y17.29%
EBIT growth 3Y-17.38%
EBIT growth 5Y1.28%
EBIT Next Year44.58%
EBIT Next 3Y16.91%
EBIT Next 5YN/A
FCF growth 1Y39.41%
FCF growth 3Y-20.8%
FCF growth 5Y1.52%
OCF growth 1Y22.13%
OCF growth 3Y-15.78%
OCF growth 5Y1.42%