Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)
Quest Diagnostics Analysis Video
View Quest Diagnostics stock analysis video. This is our DGX analyst opinion covering the buy and sell arguments for DGX stock.
Quest Diagnostics Inc Stock Rating (3.8/5)
Our Quest Diagnostics stock opinion is based on fundamentals of the company. This Quest Diagnostics stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy DGX stock?
- Quest Diagnostics had a healthy average operating margin of 15.8% over the last 4 quarters.
- Net margins came in at average 9.3% for Quest Diagnostics over the last twelve months.
- The company has an operating cash flow which is 1.5 times the net income. We see this as a positive signal.
- DGX stock is trading at an earnings multiple of 19.2 which is better than the industry average of 22.7.
- DGX stock is trading at a favorable price to sales multiple of 1.9 as against the Medical-Outpatient-Home care industry average multiple of 5.
- Quest Diagnostics's return on invested capital of 9.2% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Quest Diagnostics at 15.1%.
- The company has a healthy free cash flow margin of 11.8%.