QUEST DIAGNOSTICS INC (DGX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DGX - US74834L1008 - Common Stock
192.52 USD
+1.94 (+1.02%)
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. While DGX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DGX is not valued too expensively and it also shows a decent growth rate. Finally DGX also has an excellent dividend rating. These ratings would make DGX suitable 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.
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
The Return On Assets of DGX (5.95%) is better than 82.18% of its industry peers.
The Return On Equity of DGX (13.27%) is better than 78.22% 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.
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
With an excellent Profit Margin value of 8.88%, DGX belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
DGX's Profit Margin has declined in the last couple of years.
DGX has a better Operating Margin (14.71%) than 88.12% of its industry peers.
In the last couple of years the Operating Margin of DGX has declined.
DGX has a Gross Margin of 33.47%. This is in the better half of the industry: DGX outperforms 63.37% 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 | 14.71% | ||
| 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 just above the Cost of Capital (WACC), which means it 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.
DGX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.30 indicates that DGX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, DGX is in the better half of the industry, outperforming 70.30% 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 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.
DGX has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.03
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.13 indicates that DGX should not have too much problems paying its short term obligations.
The Current ratio of DGX (1.13) is worse than 63.37% of its industry peers.
DGX has a Quick Ratio of 1.04. This is a normal value and indicates that DGX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DGX (1.04) is worse than 67.33% 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.
Looking at the last year, DGX shows a quite strong growth in Revenue. The Revenue has grown by 13.74% in the last year.
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.
DGX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.83% yearly.
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.
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
The Price/Earnings ratio is 19.73, which indicates a rather expensive current valuation of DGX.
Compared to the rest of the industry, the Price/Earnings ratio of DGX indicates a somewhat cheap valuation: DGX is cheaper than 73.27% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DGX to the average of the S&P500 Index (25.65), we can say DGX is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.38 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 64.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. DGX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DGX is valued a bit cheaper than the industry average as 65.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DGX is valued a bit cheaper than 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 12.32 |
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)3
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 2.60. DGX pays more dividend than 88.12% of the companies in the same industry.
DGX's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| 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 been paying a dividend for at least 10 years, so it has 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%
NYSE:DGX (11/25/2025, 12:30:24 PM)
192.52
+1.94 (+1.02%)
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 Cap21.53B
Revenue(TTM)10.85B
Net Income(TTM)963.00M
Analysts75
Price Target200.59 (4.19%)
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 | 19.73 | ||
| Fwd PE | 18.38 | ||
| P/S | 1.98 | ||
| P/FCF | 15.45 | ||
| P/OCF | 11.42 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.32 |
EPS(TTM)9.76
EY5.07%
EPS(NY)10.47
Fwd EY5.44%
FCF(TTM)12.46
FCFY6.47%
OCF(TTM)16.86
OCFY8.76%
SpS97.03
BVpS64.91
TBVpS-29.56
PEG (NY)2.01
PEG (5Y)3
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 | 3.3 |
F-Score8
WACC8.51%
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)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%.