Quest Diagnostics Inc.

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DGX : NYSE : Health Services
$102.32 -2.2 | -2.1%
Today's Range: 102.125 - 104.355
Avg. Daily Volume: 1138000.0
02/20/18 - 3:36 PM ET

Financial Analysis


QUEST DIAGNOSTICS INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. QUEST DIAGNOSTICS INC has average liquidity. Currently, the Quick Ratio is 1.00 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.33% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1936.01861.0
EBITDA ($mil)390.0368.0
EBIT ($mil)317.0268.0
Net Income ($mil)254.0155.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)137.0359.0
Total Assets ($mil)10503.010100.0
Total Debt ($mil)3784.03734.0
Equity ($mil)4921.04628.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin41.8940.89
EBITDA Margin20.1419.77
Operating Margin16.3714.4
Sales Turnover0.730.74
Return on Assets7.356.38
Return on Equity15.6813.93
Debt Q4 FY17 Q4 FY16
Current Ratio1.241.56
Debt/Capital0.430.45
Interest Expense0.036.0
Interest Coverage0.07.44


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)135.0137.0
Div / share0.450.0
EPS1.821.09
Book value / share36.4533.78
Institutional Own % n/a n/a
Avg Daily Volume1169001.01257832.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.01 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 2.83 indicates a discount versus the S&P 500 average of 3.26 and a discount versus the industry average of 3.72. The price-to-sales ratio is below the S&P 500 average, but well 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DGX 18.74 Peers 20.01   DGX 11.84 Peers 12.15

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

DGX is trading at a valuation on par with its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DGX 14.94 Peers 16.04   DGX 0.93 Peers 1.10

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DGX is trading at a valuation on par with 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DGX 2.83 Peers 3.72   DGX 22.22 Peers 46.07

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 discount to its peers.

 

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

However, DGX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DGX 1.81 Peers 0.94   DGX 2.58 Peers 6.72

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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