QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DGX - US74834L1008 - Common Stock
189.69 USD
-2.66 (-1.38%)
189.69 USD
0 (0%)
Taking everything into account, DGX scores 5 out of 10 in our fundamental rating. DGX was compared to 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 correct valuation and a medium growth rate. Finally DGX also has an excellent dividend rating. With these ratings, DGX could be worth investigating further 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
Looking at the Return On Assets, with a value of 5.95%, DGX belongs to the top of the industry, outperforming 82.18% of the companies in the same industry.
DGX's Return On Equity of 13.27% is fine compared to the rest of the industry. DGX outperforms 79.21% of its industry peers.
The Return On Invested Capital of DGX (8.79%) is better than 77.23% 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 9.27%.
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 Profit Margin of 8.88%. This is amongst the best in the industry. DGX outperforms 91.09% of its industry peers.
In the last couple of years the Profit Margin of DGX has declined.
With an excellent Operating Margin value of 14.71%, DGX belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
In the last couple of years the Operating Margin of DGX has declined.
The Gross Margin of DGX (33.47%) is better than 63.37% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DGX is still creating some value.
Compared to 1 year ago, DGX has about the same amount of shares outstanding.
DGX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DGX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.29 indicates that DGX is not in any danger for bankruptcy at the moment.
DGX has a better Altman-Z score (3.29) than 68.32% of its industry peers.
The Debt to FCF ratio of DGX is 4.07, which is a neutral value as it means it would take DGX, 4.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.07, DGX is doing good in the industry, outperforming 71.29% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that DGX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, DGX is in line with its industry, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.04
WACC8.48%
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.
DGX has a worse Current ratio (1.13) than 62.38% of its industry peers.
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 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DGX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.41%, which is quite good.
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.
DGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.74%.
Measured over the past years, DGX shows a small growth in Revenue. The Revenue has been growing by 5.02% on average per year.
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 7.50% on average over the next years.
The Revenue is expected to grow by 4.83% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 19.44, which indicates a rather expensive current valuation of DGX.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than the industry average as 74.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, DGX is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.11, which indicates a rather expensive current 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 65.35% of the companies listed in the same industry.
DGX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
65.35% 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 75.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.23 | ||
| EV/EBITDA | 12.27 |
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)1.98
PEG (5Y)2.96
EPS Next 2Y7.76%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, DGX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.60, DGX pays a better dividend. On top of this DGX pays more dividend than 88.12% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, DGX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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%
189.69
-2.66 (-1.38%)
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 Change6.97%
Ins Owners0.3%
Ins Owner Change-1.37%
Market Cap21.21B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.59 (5.75%)
Short Float %4.14%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)4.8%
PT rev (3m)5.18%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0.58%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 18.11 | ||
| P/S | 1.95 | ||
| P/FCF | 15.23 | ||
| P/OCF | 11.25 | ||
| P/B | 2.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)9.76
EY5.15%
EPS(NY)10.47
Fwd EY5.52%
FCF(TTM)12.46
FCFY6.57%
OCF(TTM)16.86
OCFY8.89%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)1.98
PEG (5Y)2.96
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 | 3.29 |
F-Score8
WACC8.48%
ROIC/WACC1.04
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%.