Quest Diagnostics IncFind Ratings Reports
QUEST DIAGNOSTICS INC's gross profit margin for the second quarter of its fiscal year 2016 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 average liquidity. Currently, the Quick Ratio is 1.13 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 increased by 5.16% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1906.0||1925.0|
|Net Income ($mil)||196.0||118.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||283.0||150.0|
|Total Assets ($mil)||10109.0||9720.0|
|Total Debt ($mil)||3842.0||3736.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||42.24||42.03|
|Return on Assets||8.19||5.12|
|Return on Equity||18.24||11.42|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||139.0||144.0|
|Div / share||0.4||0.38|
|Book value / share||32.64||29.96|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1194953.0||1010427.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.90 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.57 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 3.34. 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 14.71||Peers 21.90||DGX 12.48||Peers 12.23|
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.
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 15.53||Peers 16.46||DGX 3.12||Peers 0.95|
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.
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.
|DGX 2.57||Peers 3.34||DGX 69.43||Peers 22.01|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
DGX is expected to have an earnings growth rate that significantly exceeds its peers.
|DGX 1.56||Peers 0.81||DGX -0.71||Peers 14.30|
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