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Quest Diagnostics

NYSE:DGX
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DGX
NYSE
$14B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The last earnings update was 56 days ago. More info.


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DGX Share Price and Events
7 Day Returns
2.4%
NYSE:DGX
0.8%
US Healthcare
1.2%
US Market
1 Year Returns
-7.9%
NYSE:DGX
-2.8%
US Healthcare
2.3%
US Market
DGX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Quest Diagnostics (DGX) 2.4% 5% 13.7% -7.9% 28.1% 74.1%
US Healthcare 0.8% 3.5% -0.9% -2.8% 23.6% 63.1%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • DGX underperformed the Healthcare industry which returned -2.8% over the past year.
  • DGX underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
DGX
Industry
5yr Volatility vs Market

Value

 Is Quest Diagnostics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Quest Diagnostics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Quest Diagnostics.

NYSE:DGX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DGX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.639 (1 + (1- 21%) (35.44%))
0.878
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.878 * 5.96%)
7.96%

Discounted Cash Flow Calculation for NYSE:DGX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Quest Diagnostics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:DGX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.96%)
2019 954.75 Analyst x6 884.33
2020 946.79 Analyst x6 812.27
2021 1,051.67 Analyst x3 835.70
2022 1,077.23 Est @ 2.43% 792.88
2023 1,104.38 Est @ 2.52% 752.91
2024 1,132.91 Est @ 2.58% 715.39
2025 1,162.68 Est @ 2.63% 680.03
2026 1,193.58 Est @ 2.66% 646.62
2027 1,225.57 Est @ 2.68% 614.98
2028 1,258.59 Est @ 2.69% 584.97
Present value of next 10 years cash flows $7,320.08
NYSE:DGX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,258.59 × (1 + 2.73%) ÷ (7.96% – 2.73%)
$24,707.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $24,707.15 ÷ (1 + 7.96%)10
$11,483.36
NYSE:DGX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,320.08 + $11,483.36
$18,803.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,803.44 / 134.38
$139.93
NYSE:DGX Discount to Share Price
Calculation Result
Value per share (USD) From above. $139.93
Current discount Discount to share price of $101.92
= -1 x ($101.92 - $139.93) / $139.93
27.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Quest Diagnostics is available for.
Intrinsic value
27%
Share price is $101.92 vs Future cash flow value of $139.93
Current Discount Checks
For Quest Diagnostics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Quest Diagnostics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Quest Diagnostics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Quest Diagnostics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Quest Diagnostics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DGX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.31
NYSE:DGX Share Price ** NYSE (2019-06-19) in USD $101.92
United States of America Healthcare Industry PE Ratio Median Figure of 57 Publicly-Listed Healthcare Companies 20.87x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Quest Diagnostics.

NYSE:DGX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DGX Share Price ÷ EPS (both in USD)

= 101.92 ÷ 5.31

19.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Quest Diagnostics is good value based on earnings compared to the US Healthcare industry average.
  • Quest Diagnostics is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Quest Diagnostics's expected growth come at a high price?
Raw Data
NYSE:DGX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
6.5%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 43 Publicly-Listed Healthcare Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:DGX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.18x ÷ 6.5%

2.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Quest Diagnostics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Quest Diagnostics's assets?
Raw Data
NYSE:DGX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $39.48
NYSE:DGX Share Price * NYSE (2019-06-19) in USD $101.92
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:DGX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DGX Share Price ÷ Book Value per Share (both in USD)

= 101.92 ÷ 39.48

2.58x

* Primary Listing of Quest Diagnostics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Quest Diagnostics is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Quest Diagnostics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Quest Diagnostics has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Quest Diagnostics expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Quest Diagnostics expected to grow at an attractive rate?
  • Quest Diagnostics's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Quest Diagnostics's earnings growth is positive but not above the United States of America market average.
  • Quest Diagnostics's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DGX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DGX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 6.5%
NYSE:DGX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 2.7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DGX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DGX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 8,508 1,382 1
2021-12-31 8,099 1,302 844 9
2020-12-31 7,880 1,296 812 20
2019-12-31 7,689 1,247 750 19
NYSE:DGX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,538 1,295 720
2018-12-31 7,531 1,200 733
2018-09-30 7,557 1,228 860
2018-06-30 7,524 1,188 808
2018-03-31 7,469 1,159 782
2017-12-31 7,402 1,175 769
2017-09-30 7,398 1,156 671
2017-06-30 7,427 1,095 701
2017-03-31 7,469 1,112 702
2016-12-31 7,214 1,116 642
2016-09-30 7,503 1,037 675
2016-06-30 7,498 948 825

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Quest Diagnostics's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
  • Quest Diagnostics's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DGX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Quest Diagnostics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DGX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 6.43 7.43 5.65 3.00
2020-12-31 6.01 6.91 5.42 10.00
2019-12-31 5.49 6.27 5.13 10.00
NYSE:DGX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.31
2018-12-31 5.39
2018-09-30 6.31
2018-06-30 5.92
2018-03-31 5.72
2017-12-31 5.61
2017-09-30 4.90
2017-06-30 5.08
2017-03-31 5.07
2016-12-31 4.59
2016-09-30 4.76
2016-06-30 5.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Quest Diagnostics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Quest Diagnostics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Quest Diagnostics has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Quest Diagnostics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Quest Diagnostics's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Quest Diagnostics's year on year earnings growth rate has been positive over the past 5 years.
  • Quest Diagnostics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Quest Diagnostics's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Quest Diagnostics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Quest Diagnostics Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DGX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,538.00 720.00 1,387.00
2018-12-31 7,531.00 733.00 1,359.00
2018-09-30 7,557.00 860.00 1,378.00
2018-06-30 7,524.00 808.00 1,369.00
2018-03-31 7,469.00 782.00 1,372.00
2017-12-31 7,402.00 769.00 1,374.00
2017-09-30 7,398.00 671.00 1,413.00
2017-06-30 7,427.00 701.00 1,482.00
2017-03-31 7,469.00 702.00 1,558.00
2016-12-31 7,214.00 642.00 1,337.00
2016-09-30 7,503.00 675.00 1,624.00
2016-06-30 7,498.00 825.00 1,637.00
2016-03-31 7,517.00 748.00 1,637.00
2015-12-31 7,493.00 706.00 1,616.00
2015-09-30 7,527.00 703.00 1,654.00
2015-06-30 7,551.00 491.00 1,657.00
2015-03-31 7,528.00 507.00 1,651.00
2014-12-31 7,435.00 549.00 1,635.00
2014-09-30 7,308.00 506.00 1,638.00
2014-06-30 7,192.00 780.00 1,620.00
2014-03-31 7,105.00 799.00 1,620.00
2013-12-31 7,146.00 811.00 1,632.00
2013-09-30 7,164.20 809.06 1,649.81
2013-06-30 7,197.95 564.96 1,622.76
2013-03-31 7,261.30 587.47 1,623.75
2012-12-31 7,383.00 628.00 1,681.00
2012-09-30 7,369.55 663.71 1,644.94
2012-06-30 7,454.20 676.95 1,704.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Quest Diagnostics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Quest Diagnostics used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Quest Diagnostics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Quest Diagnostics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Quest Diagnostics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Quest Diagnostics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Quest Diagnostics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Quest Diagnostics's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Quest Diagnostics's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Quest Diagnostics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Quest Diagnostics Company Filings, last reported 2 months ago.

NYSE:DGX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,418.00 4,854.00 464.00
2018-12-31 5,344.00 4,084.00 135.00
2018-09-30 5,442.00 3,829.00 263.00
2018-06-30 5,339.00 3,834.00 132.00
2018-03-31 5,143.00 3,973.00 124.00
2017-12-31 5,035.00 3,944.00 137.00
2017-09-30 4,906.00 3,840.00 350.00
2017-06-30 4,813.00 3,814.00 314.00
2017-03-31 4,741.00 3,819.00 367.00
2016-12-31 4,737.00 3,852.00 359.00
2016-09-30 4,770.00 3,827.00 406.00
2016-06-30 4,643.00 3,842.00 283.00
2016-03-31 4,738.00 3,898.00 128.00
2015-12-31 4,783.00 3,657.00 133.00
2015-09-30 4,690.00 3,731.00 123.00
2015-06-30 4,344.00 3,748.00 150.00
2015-03-31 4,271.00 4,736.00 974.00
2014-12-31 4,330.00 3,770.00 192.00
2014-09-30 4,210.00 3,893.00 170.00
2014-06-30 4,119.00 3,984.00 144.00
2014-03-31 4,020.00 3,978.00 144.00
2013-12-31 3,973.00 3,366.00 187.00
2013-09-30 3,871.60 3,393.89 158.28
2013-06-30 3,938.57 3,527.06 148.34
2013-03-31 4,227.35 3,408.82 133.60
2012-12-31 4,186.00 3,367.00 296.00
2012-09-30 4,197.58 3,531.52 191.77
2012-06-30 4,021.14 3,822.69 173.74
  • Quest Diagnostics's level of debt (79.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.9% vs 79.7% today).
  • Debt is well covered by operating cash flow (30%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7x coverage).
X
Financial health checks
We assess Quest Diagnostics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Quest Diagnostics has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Quest Diagnostics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.08%
Current annual income from Quest Diagnostics dividends. Estimated to be 2.12% next year.
If you bought $2,000 of Quest Diagnostics shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Quest Diagnostics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Quest Diagnostics's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

Purchase Quest Diagnostics before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DGX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DGX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 2.23 7.00
2020-12-31 2.18 11.00
2019-12-31 2.09 11.00
NYSE:DGX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 2.120 2.158
2019-03-01 2.120 2.339
2018-11-28 2.120 2.462
2018-08-17 2.000 1.959
2018-05-14 2.000 1.838
2018-02-01 2.000 1.971
2017-11-29 1.800 1.794
2017-08-18 1.800 1.853
2017-05-16 1.800 1.663
2017-02-21 1.800 1.791
2016-11-11 1.800 1.979
2016-08-17 1.600 1.923
2016-05-18 1.600 1.977
2016-04-27 1.600 2.111
2016-04-21 1.600 2.122
2016-02-26 1.600 2.257
2016-01-28 1.600 2.493
2015-12-04 1.520 2.225
2015-08-18 1.520 2.291
2015-05-15 1.520 2.073
2015-04-30 1.520 2.142
2015-04-23 1.520 2.060
2015-02-24 1.520 2.044
2015-01-29 1.520 2.136
2014-12-04 1.320 1.959
2014-08-15 1.320 2.122
2014-05-21 1.320 2.199
2014-01-30 1.320 2.382
2013-12-06 1.200 2.213
2013-08-20 1.200 1.976
2013-05-21 1.200 1.988
2013-02-26 1.200 2.099
2013-02-01 1.200 2.099
2012-08-09 0.680 1.137
2012-05-11 0.680 1.170
2012-02-28 0.680 1.155
2011-10-25 0.680 1.189
2011-08-12 0.400 0.820
2011-05-17 0.400 0.706
2011-02-16 0.400 0.707
2010-12-02 0.400 0.732
2010-08-11 0.400 0.820
2010-05-06 0.400 0.789
2010-02-11 0.400 0.698
2009-12-09 0.400 0.677
2009-08-12 0.400 0.723

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Quest Diagnostics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Quest Diagnostics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Quest Diagnostics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Quest Diagnostics has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Quest Diagnostics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Rusckowski
COMPENSATION $9,953,287
AGE 61
TENURE AS CEO 7.1 years
CEO Bio

Mr. Stephen H. Rusckowski, also known as Steve, has been the Chief Executive Officer and President of Quest Diagnostics Incorporated since May 01, 2012 and has been its Chairman since January 01, 2017. Mr. Rusckowski served as a Member of the Board of Management of Koninklijke Philips Electronics NV since April 1, 2007 and served as its Executive Vice President. He served as the Chief Executive Officer and President of MModal MQ Inc. since December 8, 2003. He served as the Chief Executive Officer of Philips Healthcare at Koninklijke Philips N.V since January 1, 2008. He served as the Chief Executive Officer of Philips Healthcare at Dameca A/S from November 1, 2006 to May 2012 and served as its Executive Vice President. He served as a Member of the Board of Management at Philips Malaysia Sdn. Bhd since April 2007 and served as its Executive Vice President. He served as a Member of the Board of Management at Philips Electronics Ltd. since April 1, 2007 and served as its Executive Vice President. He served as a Member of the Board of Management at Philips New Zealand Limited since April 1, 2007. He served as the Chief Executive Officer of Philips Medical Systems North America Inc., a subsidiary of Philips Electronics Singapore Pte. Ltd. since November 1, 2006. He also served as the Chief Executive Officer and Executive Vice President of Cardiac and Monitoring Systems of Philips Electronics Corporation. He served as the Chief Executive Officer of Philips Medical Systems, N.A. at Koninklijke Philips Electronics NV. He served as the Chief Executive Officer of the Imaging Systems business group of Philips Medical Systems. Prior to joining Philips Electronics Corporation, he held various positions with Hewlett-Packard, Agilent Technologies inc. from 1984 to 2001, he served as Senior Vice President and General Manager of Hewlett-Packard, Agilent Technologies Healthcare Solutions Group from 1999 to 2001 and as General Manager of Cardiology Products Division from 1996 to 1999. He served as the Chief Executive Officer of MedQuist Inc. since December 8, 2003 and served as its President from December 8, 2003 to February 2004. He served as the Chairman of American Clinical Laboratory Association from 2013 to 2016. Mr. Rusckowski served as the Non-Executive Chairman of MedQuist Inc., from October 26, 2006 to May 2008. He served as the Non-Executive Chairman of MModal MQ Inc. from October 26, 2006 to May 2008 and as its Director from February 2002 to May 2008. He served as a Director at Xerox Corporation from February 19, 2015 to May 13, 2018. He has been a Director of Quest Diagnostics Incorporated since May 1, 2012. He serves as a Director of Project Hope and Massachusetts High Tech Council. He served as a Member of Board of Directors at Holy Family Hospital, Inc. He served as a Director of MedQuist Inc., from February 2002 to May 2008. He served as a Director of Covidien plc since December 1, 2013 until January 26, 2015. Mr. Rusckowski holds a Bachelor of Science degree in Mechanical Engineering from Worcester Polytechnic Institute and a MS in Management Science from the Massachusetts Institute of Technology.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Quest Diagnostics management team in years:

6
Average Tenure
55
Average Age
  • The average tenure for the Quest Diagnostics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Steve Rusckowski

TITLE
Chairman
COMPENSATION
$10M
AGE
61
TENURE
7.1 yrs

Mark Guinan

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
56
TENURE
5.9 yrs

Catherine Doherty

TITLE
Senior VP and Group Executive of Clinical Franchise Solutions & Marketing
COMPENSATION
$2M
AGE
55

Jim Davis

TITLE
Executive Vice President of General Diagnostics
COMPENSATION
$3M
AGE
55
TENURE
6.2 yrs

Carrie Manner

TITLE
Senior Vice President of Advanced Diagnostics
COMPENSATION
$3M
AGE
43
TENURE
2.3 yrs

Michael Deppe

TITLE
VP, Corporate Controller
AGE
52
TENURE
0.2 yrs

Gabrielle Wolfson

TITLE
Senior VP and Chief Information & Digital Officer
TENURE
0.3 yrs

Shawn Bevec

TITLE
Vice President of Investor Relation

Michael Prevoznik

TITLE
Senior VP & General Counsel
COMPENSATION
$2M
AGE
56
TENURE
19.8 yrs

Tim Sharpe

TITLE
Vice President of Compliance
TENURE
19.5 yrs
Board of Directors Tenure

Average tenure and age of the Quest Diagnostics board of directors in years:

4.9
Average Tenure
63
Average Age
  • The tenure for the Quest Diagnostics board of directors is about average.
Board of Directors

Dan Stanzione

TITLE
Lead Independent Director
COMPENSATION
$334K
AGE
72
TENURE
2.4 yrs

Steve Rusckowski

TITLE
Chairman
COMPENSATION
$10M
AGE
61
TENURE
2.4 yrs

Gail Wilensky

TITLE
Director
COMPENSATION
$298K
AGE
75
TENURE
22.4 yrs

Gary Pfeiffer

TITLE
Director
COMPENSATION
$316K
AGE
68
TENURE
14.5 yrs

Tim Ring

TITLE
Director
COMPENSATION
$291K
AGE
60
TENURE
7.5 yrs

Tim Main

TITLE
Director
COMPENSATION
$285K
AGE
61
TENURE
5.4 yrs

Vicky Gregg

TITLE
Director
COMPENSATION
$281K
AGE
63
TENURE
4.9 yrs

Helen Torley

TITLE
Director
COMPENSATION
$233K
AGE
55
TENURE
1.1 yrs

Denise Morrison

TITLE
Director
AGE
64
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Quest Diagnostics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Quest Diagnostics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Quest Diagnostics Incorporated (NYSE:DGX): Time For A Financial Health Check

Check out our latest analysis for Quest Diagnostics DGX’s Debt (And Cash Flows) DGX has built up its total debt levels in the last twelve months, from US$4.0b to US$4.9b , which includes long-term debt. … Additionally, DGX has produced US$1.3b in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 27%, signalling that DGX’s current level of operating cash is high enough to cover debt. … Next Steps: DGX’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Is Quest Diagnostics Incorporated’s (NYSE:DGX) 12% Return On Capital Employed Good News?

ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Quest Diagnostics: 0.12 = US$1.2b ÷ (US$12b - US$2.3b) (Based on the trailing twelve months to March 2019.) So, Quest Diagnostics has an ROCE of 12%. … How Quest Diagnostics's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less.

Simply Wall St -

Here's How We Evaluate Quest Diagnostics Incorporated's (NYSE:DGX) Dividend

Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 39% of Quest Diagnostics's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Plus, there is room to increase the payout ratio over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Of the free cash flow it generated last year, Quest Diagnostics paid out 28% as dividends, suggesting the dividend is affordable. Is Quest Diagnostics's Balance Sheet Risky? As Quest Diagnostics has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Quest Diagnostics has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion To summarise, shareholders should always check that Quest Diagnostics's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Update: Quest Diagnostics (NYSE:DGX) Stock Gained 70% In The Last Five Years

To wit, the Quest Diagnostics share price has climbed 70% in five years, easily topping the market return of 46% (ignoring dividends). … During five years of share price growth, Quest Diagnostics actually saw its EPS drop 0.2% per year. … Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off.

Simply Wall St -

What Quest Diagnostics Incorporated's (NYSE:DGX) ROE Can Tell Us

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Will Quest Diagnostics Incorporated's (NYSE:DGX) Earnings Grow In The Years Ahead?

The latest earnings update Quest Diagnostics Incorporated (NYSE:DGX) released in December 2018a

Simply Wall St -

Are Insiders Selling Quest Diagnostics Incorporated (NYSE:DGX) Stock?

So before you buy or sell Quest Diagnostics Incorporated (NYSE:DGX), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of US$89.95.

Simply Wall St -

Only 2 Days Left Until Quest Diagnostics Incorporated (NYSE:DGX) Trades Ex-Dividend

Investors who want to cash in on Quest Diagnostics Incorporated's (NYSE:DGX) upcoming dividend of US$0.53 per share have only 2 days left to buy the shares before its ex-dividend date, 05 April 2019, in time for dividends payable on the 22 April 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Quest Diagnostics's latest financial data to analyse its dividend attributes. … 5 checks you should use to assess a dividend stock?

Simply Wall St -

What You Need To Know About Quest Diagnostics Incorporated’s (NYSE:DGX) Cash Situation

I’ve analysed below, the health and outlook of Quest Diagnostics’s cash flow, which will help you understand the stock from a cash standpoint. … Is Quest Diagnostics generating enough cash. … Quest Diagnostics’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Quest Diagnostics Incorporated (NYSE:DGX): Immense Growth Potential?

Looking at Quest Diagnostics Incorporated's (NYSE:DGX) earnings update on 31 December 2018, … it seems that analyst expectations are fairly bearish, … the higher past 5-year average growth rate of 3.5%.

Simply Wall St -

Company Info

Description

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic testing information and services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, Athena Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. The company also offers risk assessment services for the life insurance industry; and health information technology solutions for healthcare organizations and clinicians. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

Details
Name: Quest Diagnostics Incorporated
DGX
Exchange: NYSE
Founded: 1967
$13,695,508,255
134,375,081
Website: http://www.questdiagnostics.com
Address: Quest Diagnostics Incorporated
500 Plaza Drive,
Secaucus,
New Jersey, 07094,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DGX Common Stock New York Stock Exchange US USD 17. Dec 1996
DB QDI Common Stock Deutsche Boerse AG DE EUR 17. Dec 1996
LSE 0KSX Common Stock London Stock Exchange GB USD 17. Dec 1996
Number of employees
Current staff
Staff numbers
46,000
Quest Diagnostics employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:48
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.