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Quest Diagnostics Inc DGX

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Stock XNYS Rating as of
$247.64 +9.87 (4.15%)
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As of Cboe BZX Real-Time Price Open

Company Report

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Quest Diagnostics Has Carved Out a Narrow Moat on Its Attractive Cost Structure

Debbie S. Wang

Quest Diagnostics is a leading provider of independent diagnostic testing in the US thanks to its network of roughly 2,400 patient service centers across the country. Quest's scale-driven cost advantage allows the firm to benefit from several secular trends, including the proliferation of diagnostic tests and greater clinical reliance on personalized therapies. Additionally, Quest is enjoying a reprieve from Medicare-related pricing pressure as regulators tinker with the method for setting lab test reimbursement rates.

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Price vs Fair Value

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DGX is trading at a LOCK|z<<$^? premium.
Price
$237.89
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Advances in technology and personalized medicine are increasing the number of complex esoteric and gene-based tests available to patients. These tests generally carry higher profit margins for Quest.

Bears

If declines in the insured population are substantial, the resulting hit to test volume could drag down profitability for Quest.

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News

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Trading Information

Previous Close Price
$237.89
Day Range
$238.32–248.62
52-Week Range
$171.17–248.62
Bid/Ask
$247.31 / $248.32
Shares Outstanding
110.37M
Market Cap
$27.26B
Volume/Avg
808,719 / 959,112

Key Statistics

Price/Earnings (Normalized)
22.36
Price/Sales
2.32
Dividend Yield (Trailing)
1.40%
Dividend Yield (Forward)
1.45%
Dividend Payment Schedule
Jan, Apr, Jul, Oct
Total Yield
3.11%

Company Profile

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the US. The company generates over 97% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,400 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk-assessment services, and information technology solutions.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Mid Core
Total Number of Employees
57,000
Website
https://www.questdiagnostics.com

Competitors

Valuation

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Metric
DGX
LH
SHL
Price/Earnings (Normalized)
 22.3618.0313.60
Price/Book Value
 3.482.961.15
Price/Sales
 2.321.820.88
Price/Cash Flow
 13.8011.266.81
Price/Earnings
DGX
LH
SHL

Financial Strength

Metric
DGX
LH
SHL
Quick Ratio
 1.281.250.84
Current Ratio
 1.591.801.01
Interest Coverage
 6.176.434.83
Quick Ratio
DGX
LH
SHL

Profitability

Metric
DGX
LH
SHL
Return on Assets (Normalized)
 7.32%6.57%—
Return on Equity (Normalized)
 16.42%14.08%—
Return on Invested Capital (Normalized)
 10.01%9.11%—
Return on Assets
DGX
LH
SHL

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LOCK|%^<g?jLOCK|<>$40B
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LOCK|$T<z@>%LOCK|lN#G^$31B
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LOCK|fNxp>@bLOCK|#mM%$26B
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LOCK|%g&xnh#LOCK|r$t#<$26B

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