Quest Diagnostics
Market Cap
US$15.0b
Last Updated
2020/02/16 23:44 UTC
Data Sources
Company Financials +
Executive Summary
Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Quest Diagnostics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DGX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
DGX
3.8%
US Healthcare
1.8%
US Market
1 Year Return
28.5%
DGX
10.0%
US Healthcare
20.1%
US Market
Return vs Industry: DGX exceeded the US Healthcare industry which returned 10% over the past year.
Return vs Market: DGX exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| DGX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 3.8% | 1.8% |
| 30 Day | 5.4% | 0.6% | 1.4% |
| 90 Day | 8.5% | 8.8% | 8.8% |
| 1 Year | 31.2%28.5% | 11.5%10.0% | 22.7%20.1% |
| 3 Year | 25.2%18.0% | 53.3%46.4% | 50.1%40.4% |
| 5 Year | 74.1%57.2% | 63.6%52.3% | 72.9%53.9% |
Price Volatility Vs. Market
How volatile is Quest Diagnostics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Quest Diagnostics Incorporated's (NYSE:DGX) Earnings Grew 14%, Did It Beat Long-Term Trend?1 week ago | Simply Wall St
Quest Diagnostics Incorporated Just Beat EPS By 12%: Here's What Analysts Think Will Happen Next2 weeks ago | Simply Wall St
How Good Is Quest Diagnostics Incorporated (NYSE:DGX) At Creating Shareholder Value?Valuation
Is Quest Diagnostics undervalued compared to its fair value and its price relative to the market?
25.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGX ($112.85) is trading below our estimate of fair value ($151.13)
Significantly Below Fair Value: DGX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DGX is good value based on its PE Ratio (18.1x) compared to the Healthcare industry average (29.1x).
PE vs Market: DGX is good value based on its PE Ratio (18.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: DGX is poor value based on its PEG Ratio (54.4x)
Price to Book Ratio
PB vs Industry: DGX is good value based on its PB Ratio (2.7x) compared to the US Healthcare industry average (3.1x).
Next Steps
Future Growth
How is Quest Diagnostics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
0.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGX's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).
Earnings vs Market: DGX's earnings (0.3% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: DGX's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGX's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: DGX's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DGX's Return on Equity is forecast to be low in 3 years time (13.3%).
Next Steps
Past Performance
How has Quest Diagnostics performed over the past 5 years?
5.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGX has high quality earnings.
Growing Profit Margin: DGX's current net profit margins (10.8%) are higher than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: DGX's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: DGX's earnings growth over the past year (13.9%) exceeds its 5-year average (5.7% per year).
Earnings vs Industry: DGX earnings growth over the past year (13.9%) underperformed the Healthcare industry 14%.
Return on Equity
High ROE: DGX's Return on Equity (15.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Quest Diagnostics's financial position?
Financial Position Analysis
Short Term Liabilities: DGX's short term assets ($2.5B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: DGX's short term assets ($2.5B) do not cover its long term liabilities ($5.1B).
Debt to Equity History and Analysis
Debt Level: DGX's debt to equity ratio (82.8%) is considered high.
Reducing Debt: DGX's debt to equity ratio has reduced from 86.5% to 82.8% over the past 5 years.
Debt Coverage: DGX's debt is well covered by operating cash flow (26.1%).
Interest Coverage: DGX's interest payments on its debt are well covered by EBIT (6.9x coverage).
Balance Sheet
Inventory Level: DGX has a low level of unsold assets or inventory.
Debt Coverage by Assets: DGX's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Quest Diagnostics's current dividend yield, its reliability and sustainability?
1.98%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Quest Diagnostics before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: DGX's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: DGX's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: DGX's dividends per share have been stable in the past 10 years.
Growing Dividend: DGX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34%), DGX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DGX's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.7yrs
Average management tenure
CEO
Steve Rusckowski (62yo)
7.8yrs
Tenure
US$9,953,287
Compensation
Mr. Stephen H. Rusckowski, also known as Steve, has been the Chief Executive Officer and President of Quest Diagnostics Incorporated since May 01, 2012 and has been its Chairman since January 01, 2017. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD9.95M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.8yrs | US$9.95m | 0.16% $24.0m | |
| Executive VP & CFO | 6.6yrs | US$3.23m | 0.050% $7.5m | |
| Senior VP and Group Executive of Clinical Franchise Solutions & Marketing | 0yrs | US$2.32m | 0.054% $8.1m | |
| Executive Vice President of General Diagnostics | 6.8yrs | US$3.07m | 0.027% $4.1m | |
| Senior Vice President of Advanced Diagnostics | 3yrs | US$2.89m | 0.016% $2.4m | |
| VP, Corporate Controller | 0.8yrs | no data | 0.018% $2.7m | |
| Senior VP and Chief Information & Digital Officer | 1yrs | no data | no data | |
| Vice President of Investor Relation | 0yrs | no data | no data | |
| Senior VP & General Counsel | 20.5yrs | US$2.09m | 0.033% $5.0m | |
| Vice President of Compliance | 20.2yrs | no data | no data |
6.7yrs
Average Tenure
56yo
Average Age
Experienced Management: DGX's management team is seasoned and experienced (6.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.8yrs | US$9.95m | 0.16% $24.0m | |
| Independent Director | 6.1yrs | US$284.98k | 0.0097% $1.5m | |
| Independent Director | 8.2yrs | US$291.48k | no data | |
| Independent Director | 15.2yrs | US$316.48k | 0.015% $2.2m | |
| Independent Director | 23.1yrs | US$298.48k | 0.021% $3.2m | |
| Lead Independent Director | 3.1yrs | US$333.98k | 0.029% $4.3m | |
| Independent Director | 1yrs | no data | no data | |
| Independent Director | 5.6yrs | US$280.98k | 0.0091% $1.4m | |
| Independent Director | 1.8yrs | US$232.67k | no data |
5.6yrs
Average Tenure
64yo
Average Age
Experienced Board: DGX's board of directors are considered experienced (5.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Quest Diagnostics Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Quest Diagnostics Incorporated
- Ticker: DGX
- Exchange: NYSE
- Founded: 1967
- Industry: Health Care Services
- Sector: Healthcare
- Market Cap: US$15.009b
- Shares outstanding: 133.00m
- Website: https://www.questdiagnostics.com
Number of Employees
Location
- Quest Diagnostics Incorporated
- 500 Plaza Drive
- Secaucus
- New Jersey
- 7094
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DGX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1996 |
| QDI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1996 |
| 0KSX | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1996 |
| DGX * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 1996 |
| Q1UE34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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 has a strategic collaboration with hc1. The company was founded in 1967 and is headquartered in Secaucus, New Jersey.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:44 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.