Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)

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$104.53 $1.44 (1.4%) DGX stock closing price Feb 16, 2018 (Closing)
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Quest Diagnostics
Updated on : Feb 16, 2018
previous close
DGX 104.5 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.6%
Operating Profit
Operating Margin:
15.1%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.78B
Debt/Equity Ratio:
 0.76
Compared to the industry
Cash Flow
Operating cash flow:
$323M
Net Income:
$254M
Dividend Yield
DGX dividend yield:
1.72%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DGX PS :
1.8
Industry PS :
6.1
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10%
Return on Equity:
16.2%
Free Cash Flow Margin:
12.4%
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Quest Diagnostics Stock Analysis

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Investors can watch the Amigobulls Quest Diagnostics stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for DGX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Quest Diagnostics Inc Stock Rating 3.8/5

Amigobulls DGX stock analysis uses latest quarter 2017 Q4 financial data like Quest Diagnostics revenue growth, profit margins and cash flows. We compare Quest Diagnostics valuation with its sector peers to gauge relative attractiveness of DGX stock. Quest Diagnostics stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy DGX stock?

  • Quest Diagnostics had a healthy average operating margin of 15.1% over the last 4 quarters.
  • LTM Net margins were good at 10% for Quest Diagnostics.
  • DGX stock is trading at an earnings multiple of 18.5 which is better than the industry average of 23.2.
  • The lower PS ratio 1.8 for DGX stock versus Medical-Outpatient-Home care industry average of 6.1 is a positive for the company.
  • Quest Diagnostics has an attractive ROIC (Return on Invested Capital) of 10%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Quest Diagnostics at 16.2%.
  • Quest Diagnostics has a healthy FCF (Free Cash Flow) margin of 12.4%.

Should you sell DGX stock?

  • Revenue growth of 0.6% has been weak over the last 5 years.
  • Quest Diagnostics has a debt/equity ratio of  0.76, which is worse than the average in the Medical sector.

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Comments on this video and Quest Diagnostics stock

Amigobulls Quest Diagnostics stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of DGX stock and helps investors in making good buy and sell decision.

Quest Diagnostics revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.