Quest Diagnostics Incorporated

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DGX : NYSE :
$91.07 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 0
01/23/17 - 4:02 PM ET

Financial Analysis


QUEST DIAGNOSTICS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. QUEST DIAGNOSTICS INC has average liquidity. Currently, the Quick Ratio is 1.33 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.61% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1885.01880.0
EBITDA ($mil)382.0402.0
EBIT ($mil)319.0325.0
Net Income ($mil)192.0342.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)406.0123.0
Total Assets ($mil)10173.010074.0
Total Debt ($mil)3822.03731.0
Equity ($mil)4663.04589.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.4342.29
EBITDA Margin20.2621.38
Operating Margin16.9217.29
Sales Turnover0.740.75
Return on Assets6.667.05
Return on Equity14.5315.38
Debt Q3 FY16 Q3 FY15
Current Ratio1.571.45
Debt/Capital0.450.45
Interest Expense37.035.0
Interest Coverage8.629.29


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)139.0144.0
Div / share0.80.38
EPS1.342.35
Book value / share33.5531.87
Institutional Own % n/a n/a
Avg Daily Volume1119071.01037591.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.26 for the Health Care Providers & Services industry and a discount compared to the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 2.73 indicates valuation on par with the S&P 500 average of 2.83 and a discount versus the industry average of 3.13. 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 19.47 Peers 24.26   DGX 12.33 Peers 10.84

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.

 

Premium. 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 premium 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 16.79 Peers 16.09   DGX 4.13 Peers 1.03

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DGX 2.73 Peers 3.13   DGX -2.90 Peers 31.13

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 1.70 Peers 0.83   DGX -0.32 Peers 12.20

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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