QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
185.32 USD
-0.87 (-0.47%)
185.32 USD
0 (0%)
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. DGX has an excellent profitability rating, but there are some minor concerns on its financial health. DGX is not valued too expensively and it also shows a decent growth rate. 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.
DGX had a positive operating cash flow in the past year.
In the past 5 years DGX has always been profitable.
DGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DGX (5.95%) is better than 82.00% of its industry peers.
With a decent Return On Equity value of 13.27%, DGX is doing good in the industry, outperforming 78.00% of the companies in the same industry.
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 9.40%.
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 91.00% 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's Gross Margin of 33.47% is fine compared to the rest of the industry. DGX outperforms 63.00% 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
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.
DGX has a worse debt/assets ratio than last year.
2.2 Solvency
DGX has an Altman-Z score of 3.26. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.26, DGX is doing good in the industry, outperforming 71.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.07, DGX is in the better half of the industry, outperforming 72.00% 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 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.01
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DGX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, DGX is doing worse than 64.00% 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's Quick ratio of 1.04 is on the low side compared to the rest of the industry. DGX is outperformed by 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.
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.
The Revenue has grown by 13.74% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 7.50% 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 4.83% 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.
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
A Price/Earnings ratio of 18.99 indicates a rather expensive valuation of DGX.
68.00% of the companies in the same industry are more expensive than DGX, based on the Price/Earnings ratio.
DGX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.69, the valuation of DGX can be described as rather expensive.
DGX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DGX is cheaper than 64.00% of the companies in the same industry.
DGX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGX is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
DGX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DGX is cheaper than 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 12.09 |
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.
DGX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)2.89
EPS Next 2Y7.76%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
DGX has a Yearly Dividend Yield of 1.71%.
DGX's Dividend Yield is rather good when compared to the industry average which is at 2.57. DGX pays more dividend than 88.00% of the companies in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| 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
36.03% of the earnings are spent on dividend by DGX. This is a low number and 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.
DP36.03%
EPS Next 2Y7.76%
EPS Next 3Y8.13%
185.32
-0.87 (-0.47%)
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 Change6.95%
Ins Owners0.3%
Ins Owner Change-1.69%
Market Cap20.72B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.6 (8.25%)
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)4.81%
PT rev (3m)5.18%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)1.24%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.69 | ||
| P/S | 1.91 | ||
| P/FCF | 14.88 | ||
| P/OCF | 10.99 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.09 |
EPS(TTM)9.76
EY5.27%
EPS(NY)10.47
Fwd EY5.65%
FCF(TTM)12.46
FCFY6.72%
OCF(TTM)16.86
OCFY9.1%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)1.94
PEG (5Y)2.89
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 | 3.26 |
F-Score8
WACC8.71%
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%.