QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - NYSE:DGX - US74834L1008 - Common Stock
180.26 USD
-1.92 (-1.05%)
180.26 USD
0 (0%)
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. While DGX has a great profitability rating, there are some minor concerns on its financial health. DGX has a correct valuation and a medium growth rate. DGX also has an excellent dividend rating. This makes DGX very considerable 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.
Each year in the past 5 years DGX has been profitable.
DGX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DGX has a Return On Assets of 5.95%. This is amongst the best in the industry. DGX outperforms 83.17% of its industry peers.
DGX has a Return On Equity of 13.27%. This is amongst the best in the industry. DGX outperforms 80.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.79%, DGX is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
DGX had an Average Return On Invested Capital over the past 3 years of 8.77%. This is in line with the industry average of 9.28%.
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 90.10% of its industry peers.
In the last couple of years the Profit Margin of DGX has declined.
DGX's Operating Margin of 14.71% is amongst the best of the industry. DGX outperforms 86.14% of its industry peers.
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 62.38% 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
DGX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
DGX has an Altman-Z score of 3.23. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DGX (3.23) is better than 64.36% 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.
DGX has a better Debt to FCF ratio (4.07) than 73.27% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that DGX is somewhat dependend on debt financing.
The Debt to Equity ratio of DGX (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.99
WACC8.84%
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 66.34% 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's Quick ratio of 1.04 is on the low side compared to the rest of the industry. DGX is outperformed by 68.32% 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.
DGX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
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 7.25% on average over the next years.
DGX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y9.17%
EPS Next 2Y7.61%
EPS Next 3Y7.72%
EPS Next 5Y7.25%
Revenue Next Year10.53%
Revenue Next 2Y6.95%
Revenue Next 3Y5.93%
Revenue Next 5Y4.74%
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.
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
Based on the Price/Earnings ratio of 18.47, the valuation of DGX can be described as rather expensive.
Based on the Price/Earnings ratio, DGX is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
DGX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.89.
Based on the Price/Forward Earnings ratio of 17.26, the valuation of DGX can be described as rather expensive.
71.29% 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 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 65.35% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than 79.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 11.88 |
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)2.01
PEG (5Y)2.81
EPS Next 2Y7.61%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, DGX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, DGX pays a better dividend. On top of this DGX pays more dividend than 89.11% of the companies listed in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of DGX is nicely growing with an annual growth rate of 6.92%!
DGX has been paying a dividend for at least 10 years, so it has a reliable track record.
DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
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 2Y7.61%
EPS Next 3Y7.72%
180.26
-1.92 (-1.05%)
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-0.11%
Ins Owners0.3%
Ins Owner Change-0.08%
Market Cap20.16B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target191.4 (6.18%)
Short Float %3.55%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)0%
PT rev (3m)1.65%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.26 | ||
| P/S | 1.86 | ||
| P/FCF | 14.47 | ||
| P/OCF | 10.69 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.88 |
EPS(TTM)9.76
EY5.41%
EPS(NY)10.44
Fwd EY5.79%
FCF(TTM)12.46
FCFY6.91%
OCF(TTM)16.86
OCFY9.35%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)2.01
PEG (5Y)2.81
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 | 3.23 |
F-Score8
WACC8.84%
ROIC/WACC0.99
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 Y9.17%
EPS Next 2Y7.61%
EPS Next 3Y7.72%
EPS Next 5Y7.25%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y-2.91%
Revenue growth 5Y5.02%
Sales Q2Q%13.18%
Revenue Next Year10.53%
Revenue Next 2Y6.95%
Revenue Next 3Y5.93%
Revenue Next 5Y4.74%
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 9.17% 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%.