Quest Diagnostics Inc

Health Care
Medical Specialities
www.questdiagnostics.com

Earnings Score
Moat Score
Safety Score

Market Cap $17.56B
PE 21
Debt $6.85B
Cash $764.00M
EV $23.65B
FCF $1.02B

Earnings

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Sales & Net Margins

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Earnings	$841.00M
EBIT	$1.27B
ROE	12%
ROA	8%
FCF	$1.02B
Equity	$6.84B
Growth Stability	59%
PE	20.88
PEG	-2.55
PB	2.57
P/FCF	17.17
P/S	1.84
Price/Cash	0.04
Debt/Equity	1
Debt/FCF	6.7
Net Margins	9%
Gross Margins	33%
Op. Margins	13%
Earnings CAGR	6%
Sales Growth YoY	8%
Sales Growth QoQ	4%
Sales CAGR	4%
FCF CAGR	6%
Equity CAGR	5%
Earnings Stability	0.17
Earnings Growth YoY	0%
Earnings Growth QoQ	-1%
Earnings CAGR 5Y	-8%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-7%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	-6%
Sales CAGR 3Y	-6%
FCF CAGR 3Y	-25%
Equity CAGR 3Y	2%
Market Cap	$17.56B
Revenue	$9.54B
Dividend Yield	2%
Payout Ratio	39%
Assets	$16.10B
Total Debt	$6.85B
Cash	$764.00M
Shares Outstanding	111M
EV	23.65B
Earnings Score	9%
Moat Score	89%
Safety Score	67%
Final Score	55%
Working Capital	531M
Current Ratio	1.25
Gross Profit	$3.12B
Shares Growth 3y	-4%
Equity Growth QoQ	3%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

SEC Filings

Direct access to Quest Diagnostics Inc (DGX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Quest Diagnostics Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Quest Diagnostics Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 17%

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Quest Diagnostics Inc Discounted Cash Flow

Fully customizable DCF calculator online for Quest Diagnostics Inc.

Years

Calculation mode

= $15B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1B	$1.1B	$1.1B	$1.2B	$1.3B	$1.4B	$1.4B	$1.5B	$1.6B	$1.7B	$1.8B	$18B
DCF		$986M	$949M	$915M	$881M	$849M	$818M	$788M	$759M	$731M	$704M	$7B
Value	$15B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	9%	9%	10%	10%	11%	15%	18%	10%	9%	9%
ROA	-	14%	13%	11%	10%	10%	15%	20%	11%	9%	8%
ROE	-	15%	14%	16%	14%	15%	21%	31%	16%	13%	12%

Net Margins (8.95%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.97	4.82	4.14	5.33	6.61	2.53	2.19	3.03	5.81	6.7
Debt over Equity	0.99	0.81	0.8	0.77	0.83	0.98	0.59	0.62	0.67	0.79	1
Growth Stability	-	-	-	100%	100%	100%	100%	100%	66%	59%	59%

Bad Debt/FCF ratio (6.7)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (59%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	0%	3%	-2%	3%	22%	14%	-8%	-6%	3%
Earnings YoY growth	-	29%	-9%	20%	-5%	17%	67%	39%	-53%	-10%	-8%
Equity YoY growth	-	9%	-1%	6%	6%	8%	20%	-5%	-9%	7%	2%
FCF YoY growth	-	-13%	42%	19%	-11%	3%	88%	15%	-28%	-34%	-7%