(DGX) Quest Diagnostics - NYSE
Sector: Healthcare | Industry: Diagnostics & Research | Exchange: NYSE (USA) | Market Cap: 21.586m USD | Total Return: 17.5% in 12m
Avg Turnover: 168M
EPS Trend: 93.7%
Qual. Beats: 6
Rev. Trend: 93.3%
Qual. Beats: 4
Warnings
Choppy
Tailwinds
No distinct edge detected
Quest Diagnostics Incorporated (NYSE: DGX) is a leading U.S.-based provider of diagnostic testing and clinical laboratory services, founded in 1967 and headquartered in Secaucus, New Jersey. The company operates a hub-and-spoke delivery model that combines a nationwide network of laboratories and patient service centers with mobile phlebotomists, call centers, and in-office collection staff. It serves a broad customer base that includes physicians, hospitals, health plans, employers, government agencies, pharmaceutical firms, insurers, accountable care organizations, and individual patients and consumers.
Its testing portfolio spans routine, non-routine, and advanced clinical testing, anatomic pathology, and specialized areas such as cardiometabolic and endocrine disorders, cancer, infectious and autoimmune disease, neurology (including Alzheimers diagnostics), womens health and prenatal genetics, and clinical drug monitoring and toxicology. Beyond diagnostics, Quest offers risk assessment and underwriting support services to the life insurance industry, workplace drug testing (using urine, hair, and oral fluid specimens), employer population health programs such as biometric screenings and flu shots, healthcare IT and digital health connectivity solutions, in vitro diagnostic test development, and medical director services for hospital laboratories. The company markets its services under multiple brands, including Quest Diagnostics, AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum.
As a large-cap constituent of the GICS Health Care sector and Health Care Services sub-industry, Quest Diagnostics is part of the U.S. clinical laboratory industry, which plays a central role in medical decision-making by generating the diagnostic information that physicians, payers, and public health authorities rely on. The companys diversified service mix-spanning clinical testing, employer and insurance-related services, and digital health-reflects a business model designed to monetize laboratory infrastructure across multiple end markets.
- Medicare PAMA cuts squeeze per-test reimbursement
- Base business volume growth replaces COVID revenue tailwind
- Advanced diagnostics acquisitions expand specialty testing portfolio
| Net Income: 1.02b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 1.27 > 1.0 |
| NWC/Revenue: 3.45% < 20% (prev 6.24%; Δ -2.79% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.85b > Net Income 1.02b |
| Net Debt (7.33b) to EBITDA (2.12b): 3.46 < 3 |
| Current Ratio: 1.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.0m) vs 12m ago -0.88% < -2% |
| Gross Margin: 33.23% > 18% (prev 32.84%; Δ 0.39% > 0.5%) |
| Asset Turnover: 69.47% > 50% (prev 64.30%; Δ 5.16% > 0%) |
| Interest Coverage Ratio: 6.18 > 6 (EBIT TTM 1.66b / Interest Expense TTM 268.0m) |
| A: 0.02 (Total Current Assets 2.57b - Total Current Liabilities 2.18b) / Total Assets 16.7b |
| B: 0.61 (Retained Earnings 10.2b / Total Assets 16.7b) |
| C: 0.10 (EBIT TTM 1.66b / Avg Total Assets 16.2b) |
| D: 0.82 (Book Value of Equity 7.37b / Total Liabilities 9.01b) |
| Altman-Z'' = 3.68 = AA |
| DSRI: 1.02 (Receivables 1.59b/1.40b, Revenue 11.3b/10.2b) |
| GMI: 0.99 (GM 32.84% / 33.23%) |
| AQI: 0.97 (AQ_t 0.67 / AQ_t-1 0.69) |
| SGI: 1.11 (Revenue 11.3b / 10.2b) |
| TATA: -0.05 (NI 1.02b - CFO 1.85b) / TA 16.7b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of June 26, 2026, the stock is trading at USD 206.24 with a total of 632,250 shares traded. Over the past week, the price has changed by +4.29%, over one month by +6.93%, over three months by +5.43% and over the past year by +17.52%.
Current recommended Stop Loss: 198.90 (which is 3.6% or 1.6 ATR below the current price).
Quest Diagnostics has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy DGX.
- StrongBuy: 7
- Buy: 2
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 223.4 | 8.3% |
P/E Trailing = 21.547
P/E Forward = 18.1488
P/S = 1.914
P/B = 2.9305
P/EG = 1.5012
Revenue TTM = 11.3b USD
EBIT TTM = 1.66b USD
EBITDA TTM = 2.12b USD
Long Term Debt = 5.16b USD (from longTermDebt, last quarter)
Short Term Debt = 677.0m USD (from shortTermDebt, last quarter)
Debt = 7.73b USD (from shortLongTermDebtTotal, last quarter) + Leases 748.0m
Net Debt = 7.33b USD (calculated: Debt 7.73b - CCE 393.0m)
Enterprise Value = 28.9b USD (21.6b + Debt 7.73b - CCE 393.0m)
Interest Coverage Ratio = 6.18 (Ebit TTM 1.66b / Interest Expense TTM 268.0m)
EV/FCF = 21.81x (Enterprise Value 28.9b / FCF TTM 1.33b)
FCF Yield = 4.58% (FCF TTM 1.33b / Enterprise Value 28.9b)
FCF Margin = 11.76% (FCF TTM 1.33b / Revenue TTM 11.3b)
Net Margin = 9.08% (Net Income TTM 1.02b / Revenue TTM 11.3b)
Gross Margin = 33.23% ((Revenue TTM 11.3b - Cost of Revenue TTM 7.53b) / Revenue TTM)
Gross Margin QoQ = 32.54% (prev 32.57%)
Tobins Q-Ratio = 1.73 (Enterprise Value 28.9b / Total Assets 16.7b)
Interest Expense / Debt = 3.47% (Interest Expense 268.0m / Debt 7.73b)
Taxrate = 23.50% (329.0m / 1.40b)
NOPAT = 1.27b (EBIT 1.66b * (1 - 23.50%))
Current Ratio = 1.18 (Total Current Assets 2.57b / Total Current Liabilities 2.18b)
Debt / Equity = 1.05 (Debt 7.73b / totalStockholderEquity, last quarter 7.37b)
Debt / EBITDA = 3.46 (Net Debt 7.33b / EBITDA 2.12b)
Debt / FCF = 5.53 (Net Debt 7.33b / FCF TTM 1.33b)
Total Stockholder Equity = 7.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.31% (Net Income 1.02b / Total Assets 16.7b)
RoE = 14.11% (Net Income TTM 1.02b / Total Stockholder Equity 7.26b)
RoCE = 13.34% (EBIT 1.66b / Capital Employed (Equity 7.26b + L.T.Debt 5.16b))
RoIC = 8.57% (NOPAT 1.27b / Invested Capital 14.8b)
WACC = 5.19% (E(21.6b)/V(29.3b) * Re(6.10%) + D(7.73b)/V(29.3b) * Rd(3.47%) * (1-Tc(0.23)))
Discount Rate = 6.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -12.17 | Cagr: -0.39%
[DCF] Terminal Value 77.97% ; FCFF base≈1.22b ; Y1≈1.40b ; Y5≈2.05b
[DCF] Fair Price = 213.1 (EV 30.9b - Net Debt 7.33b = Equity 23.6b / Shares 110.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 93.68 | EPS CAGR: 6.05% | SUE: 2.61 | # QB: 6
Revenue Correlation: 93.25 | Revenue CAGR: 7.95% | SUE: 2.52 | # QB: 4
EPS current Quarter (2026-06-30): EPS=2.82 | Chg30d=+0.00% | Revisions=-50% | Analysts=14
EPS next Quarter (2026-09-30): EPS=2.80 | Chg30d=+0.00% | Revisions=-20% | Analysts=14
EPS current Year (2026-12-31): EPS=10.77 | Chg30d=+0.00% | Revisions=+80% | GrowthEPS=+9.3% | GrowthRev=+7.4%
EPS next Year (2027-12-31): EPS=11.67 | Chg30d=+0.00% | Revisions=+81% | GrowthEPS=+8.4% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +81%