(DGX) Quest Diagnostics - Ratings and Ratios
Laboratory Testing, Diagnostic Services, Risk Assessment, Health IT
DGX EPS (Earnings per Share)
DGX Revenue
Description: DGX Quest Diagnostics
Quest Diagnostics Incorporated is a leading provider of diagnostic testing and services, operating in the United States and internationally. The company offers a range of diagnostic information services, including clinical testing, anatomic pathology testing, and risk assessment services for the life insurance industry. Its services are delivered through a network of laboratories, patient service centers, and mobile phlebotomists, catering to a diverse customer base including physicians, hospitals, patients, health plans, and pharmaceutical companies.
From a business perspective, Quest Diagnostics has a strong presence in the healthcare industry, with a diverse portfolio of brands including Quest Diagnostics, AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum. The companys information technology solutions for healthcare organizations and clinicians also contribute to its revenue stream. With a history dating back to 1967, Quest Diagnostics has established itself as a trusted player in the diagnostic testing market.
To evaluate the companys performance, key performance indicators (KPIs) such as revenue growth, EBITDA margin, and return on equity (ROE) are essential. With a ROE of 13.22%, Quest Diagnostics demonstrates a reasonable return on shareholder equity. Additionally, the companys market capitalization of $19.7 billion indicates its significant presence in the market. Other relevant KPIs include the companys debt-to-equity ratio, interest coverage ratio, and the percentage of revenue derived from its core diagnostic testing services versus its information technology solutions.
From a valuation perspective, the companys price-to-earnings (P/E) ratio of 22.33 and forward P/E ratio of 18.45 suggest that Quest Diagnostics is relatively fairly valued compared to its earnings. To further assess its valuation, metrics such as the enterprise value-to-EBITDA (EV/EBITDA) ratio and the price-to-book (P/B) ratio can provide additional insights.
DGX Stock Overview
| Market Cap in USD | 20,312m |
| Sub-Industry | Health Care Services |
| IPO / Inception | 1996-12-17 |
DGX Stock Ratings
| Growth Rating | 69.0% |
| Fundamental | 63.0% |
| Dividend Rating | 61.2% |
| Return 12m vs S&P 500 | 1.33% |
| Analyst Rating | 3.89 of 5 |
DGX Dividends
| Dividend Yield 12m | 1.79% |
| Yield on Cost 5y | 3.09% |
| Annual Growth 5y | 6.02% |
| Payout Consistency | 98.4% |
| Payout Ratio | 33.1% |
DGX Growth Ratios
| Growth Correlation 3m | 24.7% |
| Growth Correlation 12m | 85.9% |
| Growth Correlation 5y | 72.5% |
| CAGR 5y | 12.66% |
| CAGR/Max DD 5y | 0.45 |
| Sharpe Ratio 12m | 0.56 |
| Alpha | 12.40 |
| Beta | 0.231 |
| Volatility | 20.27% |
| Current Volume | 731.5k |
| Average Volume 20d | 788.4k |
| Stop Loss | 176.1 (-3%) |
| Signal | 2.07 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (949.0m TTM) > 0 and > 6% of Revenue (6% = 631.3m TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 1.36pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 1.65% (prev 0.05%; Δ 1.60pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 1.68b > Net Income 949.0m (YES >=105%, WARN >=100%) |
| Net Debt (6.07b) to EBITDA (1.47b) ratio: 4.11 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.09 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (113.0m) change vs 12m ago 0.89% (target <= -2.0% for YES) |
| Gross Margin 33.04% (prev 32.84%; Δ 0.20pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 70.50% (prev 67.33%; Δ 3.17pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.99 (EBITDA TTM 1.47b / Interest Expense TTM 269.0m) >= 6 (WARN >= 3) |
Altman Z'' 3.71
| (A) 0.01 = (Total Current Assets 2.20b - Total Current Liabilities 2.02b) / Total Assets 15.97b |
| (B) 0.61 = Retained Earnings (Balance) 9.68b / Total Assets 15.97b |
| (C) 0.07 = EBIT TTM 1.07b / Avg Total Assets 14.93b |
| (D) 1.12 = Book Value of Equity 9.67b / Total Liabilities 8.62b |
| Total Rating: 3.71 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.98
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 4.74% = 2.37 |
| 3. FCF Margin 11.63% = 2.91 |
| 4. Debt/Equity 0.81 = 2.18 |
| 5. Debt/Ebitda 3.96 = -2.50 |
| 6. ROIC - WACC 0.85% = 1.06 |
| 7. RoE 13.68% = 1.14 |
| 8. Rev. Trend 72.54% = 3.63 |
| 9. Rev. CAGR 3.89% = 0.49 |
| 10. EPS Trend 46.37% = 1.16 |
| 11. EPS CAGR 5.39% = 0.54 |
What is the price of DGX shares?
Over the past week, the price has changed by +0.78%, over one month by +8.16%, over three months by +6.08% and over the past year by +18.52%.
Is Quest Diagnostics a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of DGX is around 188.00 USD . This means that DGX is currently overvalued and has a potential downside of 3.5%.
Is DGX a buy, sell or hold?
- Strong Buy: 8
- Buy: 1
- Hold: 10
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the DGX price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 188.2 | 3.6% |
| Analysts Target Price | 188.2 | 3.6% |
| ValueRay Target Price | 204 | 12.3% |
Last update: 2025-08-30 04:37
DGX Fundamental Data Overview
CCE Cash And Equivalents = 319.0m USD (last quarter)
P/E Trailing = 21.7273
P/E Forward = 18.3824
P/S = 1.9304
P/B = 2.7724
P/EG = 1.5709
Beta = 0.459
Revenue TTM = 10.52b USD
EBIT TTM = 1.07b USD
EBITDA TTM = 1.47b USD
Long Term Debt = 5.17b USD (from longTermDebt, last quarter)
Short Term Debt = 675.0m USD (from shortTermDebt, last quarter)
Debt = 5.84b USD (Calculated: Short Term 675.0m + Long Term 5.17b)
Net Debt = 6.07b USD (from netDebt column, last quarter)
Enterprise Value = 25.84b USD (20.31b + Debt 5.84b - CCE 319.0m)
Interest Coverage Ratio = 3.99 (Ebit TTM 1.07b / Interest Expense TTM 269.0m)
FCF Yield = 4.74% (FCF TTM 1.22b / Enterprise Value 25.84b)
FCF Margin = 11.63% (FCF TTM 1.22b / Revenue TTM 10.52b)
Net Margin = 9.02% (Net Income TTM 949.0m / Revenue TTM 10.52b)
Gross Margin = 33.04% ((Revenue TTM 10.52b - Cost of Revenue TTM 7.05b) / Revenue TTM)
Tobins Q-Ratio = 2.67 (Enterprise Value 25.84b / Book Value Of Equity 9.67b)
Interest Expense / Debt = 1.15% (Interest Expense 67.0m / Debt 5.84b)
Taxrate = 22.86% (from yearly Income Tax Expense: 273.0m / 1.19b)
NOPAT = 828.4m (EBIT 1.07b * (1 - 22.86%))
Current Ratio = 1.09 (Total Current Assets 2.20b / Total Current Liabilities 2.02b)
Debt / Equity = 0.81 (Debt 5.84b / last Quarter total Stockholder Equity 7.23b)
Debt / EBITDA = 3.96 (Net Debt 6.07b / EBITDA 1.47b)
Debt / FCF = 4.77 (Debt 5.84b / FCF TTM 1.22b)
Total Stockholder Equity = 6.94b (last 4 quarters mean)
RoA = 5.94% (Net Income 949.0m, Total Assets 15.97b )
RoE = 13.68% (Net Income TTM 949.0m / Total Stockholder Equity 6.94b)
RoCE = 8.87% (Ebit 1.07b / (Equity 6.94b + L.T.Debt 5.17b))
RoIC = 6.38% (NOPAT 828.4m / Invested Capital 12.98b)
WACC = 5.53% (E(20.31b)/V(26.16b) * Re(6.87%)) + (D(5.84b)/V(26.16b) * Rd(1.15%) * (1-Tc(0.23)))
Shares Correlation 5-Years: -89.40 | Cagr: -2.49%
Discount Rate = 6.87% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 76.85% ; FCFE base≈1.08b ; Y1≈988.3m ; Y5≈870.8m
Fair Price DCF = 140.3 (DCF Value 15.69b / Shares Outstanding 111.8m; 5y FCF grow -11.07% → 3.0% )
Revenue Correlation: 72.54 | Revenue CAGR: 3.89%
Rev Growth-of-Growth: 12.54
EPS Correlation: 46.37 | EPS CAGR: 5.39%
EPS Growth-of-Growth: -0.37
Additional Sources for DGX Stock
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