Quest Diagnostics IncFind Ratings Reports
QUEST DIAGNOSTICS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. QUEST DIAGNOSTICS INC has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged 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||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||1899.0||1863.0|
|Net Income ($mil)||164.0||102.0|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||367.0||128.0|
|Total Assets ($mil)||10109.0||10097.0|
|Total Debt ($mil)||3731.0||3898.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||41.55||41.28|
|Return on Assets||6.99||7.42|
|Return on Equity||15.26||16.17|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||137.0||141.0|
|Div / share||0.45||0.38|
|Book value / share||33.8||32.88|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||944910.0||821778.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.61 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 3.22 indicates valuation on par with the S&P 500 average of 3.04 and a discount versus the industry average of 3.51. 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.
|DGX 21.91||Peers 24.61||DGX 13.22||Peers 13.84|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
DGX is trading at a discount to 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.
|DGX 18.58||Peers 17.20||DGX 0.95||Peers 1.39|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
DGX is trading at a premium 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.
|DGX 3.22||Peers 3.51||DGX -3.69||Peers 16.94|
Average. 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 valuation on par with 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.
|DGX 1.97||Peers 0.93||DGX 0.45||Peers 10.31|
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