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Quest Diagnostics Inc
DGX : NYSE : Health Care
$68.76 | %
Today's Range: 68.40 - 69.24
Avg. Daily Volume: 1,136,200
11/27/15 - 1:01 PM ET

Financial Analysis

QUEST DIAGNOSTICS INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. QUEST DIAGNOSTICS INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.73% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)1880.01904.0
EBITDA ($mil)402.0382.0
EBIT ($mil)325.0303.0
Net Income ($mil)342.0129.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)123.0170.0
Total Assets ($mil)10074.09801.0
Total Debt ($mil)3731.03864.0
Equity ($mil)4589.04182.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin42.2941.75
EBITDA Margin21.3820.06
Operating Margin17.2915.91
Sales Turnover0.750.75
Return on Assets7.055.18
Return on Equity15.3812.17
Debt Q3 FY15 Q3 FY14
Current Ratio1.451.31
Interest Expense35.042.0
Interest Coverage9.297.21

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)144.0145.0
Div / share0.380.33
Book value / share31.8728.84
Institutional Own % n/a n/a
Avg Daily Volume1128462.01098052.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.27 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 22.01. To use another comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 4.03. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, QUEST DIAGNOSTICS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DGX 14.16 Peers 22.27   DGX 11.66 Peers 12.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DGX is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DGX is trading at a discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DGX 13.44 Peers 18.16   DGX 0.54 Peers 1.79

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DGX is trading at a discount to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DGX trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DGX 2.15 Peers 4.03   DGX 39.08 Peers 38.92

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DGX is trading at a significant discount to its peers.


Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DGX is expected to keep pace with its peers on the basis of earnings growth.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DGX 1.31 Peers 0.82   DGX 2.99 Peers 15.74

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DGX is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DGX significantly trails its peers on the basis of sales growth



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