Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)

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$106.84 $1.84 (1.75%) DGX stock closing price Aug 22, 2017 (Closing)
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Quest Diagnostics
Updated on : Aug 22, 2017
previous close
DGX 106.8 (0%)
S&P 500 2452.5 (0%)
Closing Price On: Aug 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.1%
Operating Profit
Operating Margin:
15.8%
Sector Average:
-2.2%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.74B
Debt/Equity Ratio:
 0.79
Compared to the industry
Cash Flow
Operating cash flow:
$294M
Net Income:
$193M
Dividend Yield
DGX dividend yield:
1.59%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DGX PS :
1.9
Industry PS :
5
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.2%
Return on Equity:
15.1%
Free Cash Flow Margin:
11.8%
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Quest Diagnostics Analysis Video

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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%.

Should you sell DGX stock?

  • 2017 Q2 revenue growth of 1.9% YoY was meagre.
  • Revenue declined at a CAGR of -0.1% over the last 5 years.
  • With a debt/equity ratio of  0.79, Quest Diagnostics is highly leveraged in comparison to Medical peers.

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