NYSE:DGX

Stock Analysis Report

Executive Summary

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

2.7%

NYSE:DGX

-1.5%

US Healthcare

2.1%

US Market


1 Year Return

-7.4%

NYSE:DGX

-7.3%

US Healthcare

-0.04%

US Market

DGX underperformed the Healthcare industry which returned -5.6% over the past year.

DGX underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

DGXIndustryMarket
7 Day2.7%-1.5%2.1%
30 Day-0.7%-3.7%-3.2%
90 Day4.7%0.7%2.8%
1 Year-5.3%-7.4%-5.9%-7.3%2.2%-0.04%
3 Year30.9%23.4%28.5%23.2%41.5%32.3%
5 Year83.4%65.6%64.8%55.1%55.0%37.8%

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

Valuation

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

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Quest Diagnostics is poor value based on expected growth next year.


Price Based on Value of Assets

Quest Diagnostics is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Quest Diagnostics's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Quest Diagnostics's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Quest Diagnostics's revenue growth is positive but not above the United States of America market average.

Quest Diagnostics's earnings growth is positive but not above the United States of America market average.

Quest Diagnostics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Quest Diagnostics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Quest Diagnostics performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Quest Diagnostics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Quest Diagnostics used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Quest Diagnostics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Quest Diagnostics's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Quest Diagnostics's level of debt (71.2%) 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 (95.6% vs 71.2% today).

Debt is well covered by operating cash flow (32.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

2.12%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Quest Diagnostics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Quest Diagnostics's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Steve Rusckowski (62yo)

7.3yrs

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

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.2yrs

Average Tenure

56yo

Average Age

The average tenure for the Quest Diagnostics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.1yrs

Average Tenure

64yo

Average Age

The tenure for the Quest Diagnostics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Rusckowski (62yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$9.95m
  • Michael Prevoznik (57yo)

    Senior VP & General Counsel

    • Tenure: 20.0yrs
    • Compensation: US$2.09m
  • Catherine Doherty (56yo)

    Senior VP and Group Executive of Clinical Franchise Solutions & Marketing

    • Tenure: 0.0yrs
    • Compensation: US$2.32m
  • Shawn Bevec

    Vice President of Investor Relation

    • Tenure: 0.0yrs
  • Gabrielle Wolfson

    Senior VP and Chief Information & Digital Officer

    • Tenure: 0.5yrs
  • Tim Sharpe

    Vice President of Compliance

    • Tenure: 19.7yrs
  • Mark Guinan (57yo)

    Executive VP & CFO

    • Tenure: 6.1yrs
    • Compensation: US$3.23m
  • Carrie Manner (44yo)

    Senior Vice President of Advanced Diagnostics

    • Tenure: 2.5yrs
    • Compensation: US$2.89m
  • Jim Davis (56yo)

    Executive Vice President of General Diagnostics

    • Tenure: 6.3yrs
    • Compensation: US$3.07m
  • Michael Deppe (53yo)

    VP, Corporate Controller

    • Tenure: 0.3yrs

Board Members

  • Tim Main (62yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$284.98k
  • Steve Rusckowski (62yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: US$9.95m
  • Tim Ring (61yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$291.48k
  • Gary Pfeiffer (69yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$316.48k
  • Gail Wilensky (76yo)

    Director

    • Tenure: 22.6yrs
    • Compensation: US$298.48k
  • Dan Stanzione (73yo)

    Lead Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$333.98k
  • Denise Morrison (65yo)

    Director

    • Tenure: 0.5yrs
  • Vicky Gregg (64yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$280.98k
  • Helen Torley (56yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$232.67k

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$13.820b
  • Shares outstanding: 134.67m
  • Website: https://www.questdiagnostics.com

Number of Employees


Location

  • Quest Diagnostics Incorporated
  • 500 Plaza Drive
  • Secaucus
  • New Jersey
  • 7094
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1996
QDIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1996
0KSXLSE (London Stock Exchange)YesCommon StockGBUSDDec 1996

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:42
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.