NYSE:DGX

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Executive Summary

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


Snowflake Analysis

Solid track record 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DGX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

DGX

3.7%

US Healthcare

1.5%

US Market


1 Year Return

15.3%

DGX

17.3%

US Healthcare

22.3%

US Market

Return vs Industry: DGX underperformed the US Healthcare industry which returned 16.4% over the past year.

Return vs Market: DGX underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

DGXIndustryMarket
7 Day-1.2%3.7%1.5%
30 Day-2.0%3.3%8.8%
90 Day13.2%15.1%10.8%
1 Year17.9%15.3%18.9%17.3%25.1%22.3%
3 Year35.3%27.0%41.4%35.5%49.5%39.6%
5 Year102.5%82.7%84.9%71.6%105.8%83.3%

Long-Term 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 compared to its fair value and its price relative to the market?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DGX ($123.29) is trading below our estimate of fair value ($132.47)

Significantly Below Fair Value: DGX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DGX is good value based on its PE Ratio (14.9x) compared to the US Healthcare industry average (23.4x).

PE vs Market: DGX is good value based on its PE Ratio (14.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: DGX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DGX is good value based on its PB Ratio (2.6x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is Quest Diagnostics forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGX's earnings are forecast to decline over the next 3 years (-12.2% per year).

Earnings vs Market: DGX's earnings are forecast to decline over the next 3 years (-12.2% per year).

High Growth Earnings: DGX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DGX's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: DGX's revenue is forecast to decline over the next 3 years (-2.6% 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 (14%).


Next Steps

Past Performance

How has Quest Diagnostics performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGX has high quality earnings.

Growing Profit Margin: DGX's current net profit margins (13.2%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: DGX's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: DGX's earnings growth over the past year (55%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: DGX earnings growth over the past year (55%) exceeded the Healthcare industry 22.6%.


Return on Equity

High ROE: DGX's Return on Equity (17.7%) is considered low.


Next Steps

Financial Health

How is Quest Diagnostics's financial position?


Financial Position Analysis

Short Term Liabilities: DGX's short term assets ($3.3B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: DGX's short term assets ($3.3B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: DGX's debt to equity ratio (69.6%) is considered high.

Reducing Debt: DGX's debt to equity ratio has reduced from 79% to 69.6% over the past 5 years.

Debt Coverage: DGX's debt is well covered by operating cash flow (39.9%).

Interest Coverage: DGX's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DGX's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: DGX's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 (26.7%), 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 (31.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Steve Rusckowski (63 yo)

8.58yrs

Tenure

US$10,118,539

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 December 2016. Mr. Ru...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD10.12M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Rusckowski
Chairman8.58yrsUS$10.12m0.18%
$ 29.3m
Mark Guinan
Executive VP & CFO7.42yrsUS$3.32m0.055%
$ 9.1m
James Davis
Executive Vice President of General Diagnostics7.67yrsUS$3.12m0.028%
$ 4.7m
Carrie Manner
Senior Vice President of Advanced Diagnostics3.83yrsUS$2.68m0.017%
$ 2.8m
Manuel Méndez
Senior VP & Chief Commercial Officer1.17yrsUS$4.58m0.018%
$ 3.0m
Michael Deppe
VP, Corporate Controller & Chief Accounting Officer1.67yrsno data0.019%
$ 3.2m
Gabrielle Wolfson
Senior VP and Chief Information & Digital Officer1.83yrsno datano data
Shawn Bevec
Vice President of Investor Relationno datano datano data
Michael Prevoznik
Senior VP & General Counsel21.33yrsUS$2.09m0.034%
$ 5.6m
Timothy Sharpe
Vice President of Compliance21yrsno datano data
Gary Samuels
Vice President of Corporate Communications24.08yrsno datano data
Cecilia McKenney
Senior VP & Chief Human Resources Officer2.83yrsno datano data

7.4yrs

Average Tenure

57yo

Average Age

Experienced Management: DGX's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Rusckowski
Chairman8.58yrsUS$10.12m0.18%
$ 29.3m
Timothy Main
Independent Director6.92yrsUS$298.11k0.015%
$ 2.4m
Timothy Ring
Independent Director9yrsUS$291.48k0.015%
$ 2.5m
Gary Pfeiffer
Independent Director16yrsUS$323.04k0.016%
$ 2.7m
Gail Wilensky
Independent Director23.92yrsUS$299.79k0.022%
$ 3.7m
Daniel Stanzione
Lead Independent Director3.92yrsUS$340.54k0.021%
$ 3.5m
Denise Morrison
Independent Director1.83yrsUS$308.65kno data
Vicky Gregg
Independent Director6.42yrsUS$280.98k0.010%
$ 1.7m
Wright Lassiter
Independent Director0.75yrno datano data
Helen Torley
Independent Director2.58yrsUS$275.04k0.0036%
$ 603.1k

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: DGX's board of directors are considered experienced (5.2 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$16.615b
  • Shares outstanding: 134.77m
  • 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
DGX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1996
Q1UE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM SHS USD0.01BRBRLJan 2020

Biography

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as ro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 23:47
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.