Quest Diagnostics Incorporated (DGX) 10-Year Financial Performance & Capital Metrics

DGX • • Industrial / General

HealthcareDiagnostics & ResearchClinical Laboratory ServicesGeneral Clinical Laboratories

AboutQuest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, independent delivery networks, health plans, employers, direct contract entities, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians robust information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.Show more

Revenue $9.87B +6.7%
EBITDA $1.84B +8.1%
Net Income $871M +2.0%
EPS (Diluted) 7.69 +2.3%
Gross Margin 32.86% -0.9%
EBITDA Margin 18.63% +1.3%
Operating Margin 13.63%
Net Margin 8.82% -4.4%
ROE 13.08% -4.8%
ROIC 8.19% -6.4%
Debt/Equity 1.03 +20.0%
Interest Coverage 5.96 -23.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓14 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Healthy 5Y average net margin of 12.3%
✓Trading near 52-week high

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.88%

5Y5.02%

3Y-2.91%

TTM13.74%

Profit (Net Income) CAGR

10Y4.59%

5Y0.3%

3Y-24.14%

TTM15.22%

EPS CAGR

10Y7.28%

5Y4.1%

3Y-20.89%

TTM14.36%

ROCE

10Y Avg13.72%

5Y Avg14.04%

3Y Avg11.12%

Latest10.28%

Peer Comparison

General Clinical Laboratories

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
DGXQuest Diagnostics Incorporated	21.16B	190.26	24.74	6.7%	8.93%	13.14%	4.29%	1.03
OPKOPKO Health, Inc.	982.66M	1.28	-16.69	-17.41%	-21.93%	-10.79%		0.37
FLGTFulgent Genetics, Inc.	885.64M	28.65	-20.32	-1.99%	-13.62%	-3.84%		0.01

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	7.49B	7.51B	7.71B	7.53B	7.73B	9.44B	10.79B	9.88B	9.25B	9.87B
Revenue Growth %	0.01%	0%	0.03%	-0.02%	0.03%	0.22%	0.14%	-0.08%	-0.06%	0.07%
Cost of Goods Sold+	4.66B	4.62B	4.72B	4.93B	5.04B	5.8B	6.58B	6.45B	6.2B	6.63B
COGS % of Revenue	0.62%	0.61%	0.61%	0.65%	0.65%	0.62%	0.61%	0.65%	0.67%	0.67%
Gross Profit+	2.84B	2.9B	2.99B	2.6B	2.69B	3.63B	4.21B	3.43B	3.07B	3.24B
Gross Margin %	0.38%	0.39%	0.39%	0.35%	0.35%	0.38%	0.39%	0.35%	0.33%	0.33%
Gross Profit Growth %	0.01%	0.02%	0.03%	-0.13%	0.03%	0.35%	0.16%	-0.18%	-0.11%	0.06%
Operating Expenses+	1.77B	1.74B	1.82B	1.5B	1.46B	1.66B	1.83B	2B	1.81B	1.9B
OpEx % of Revenue	0.24%	0.23%	0.24%	0.2%	0.19%	0.18%	0.17%	0.2%	0.2%	0.19%
Selling, General & Admin	1.68B	1.68B	1.75B	1.42B	1.46B	1.55B	1.73B	1.87B	1.61B	1.77B
SG&A % of Revenue	0.22%	0.22%	0.23%	0.19%	0.19%	0.16%	0.16%	0.19%	0.17%	0.18%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-143M	-48M	16M	-8M	1M	112M	101M	131M	192M	128M
Operating Income+	1.4B	1.28B	1.17B	1.1B	1.23B	1.97B	2.38B	1.43B	1.26B	1.35B
Operating Margin %	0.19%	0.17%	0.15%	0.15%	0.16%	0.21%	0.22%	0.14%	0.14%	0.14%
Operating Income Growth %	0.42%	-0.09%	-0.09%	-0.05%	0.12%	0.6%	0.21%	-0.4%	-0.12%	0.07%
EBITDA+	1.7B	1.53B	1.44B	1.41B	1.56B	2.33B	2.79B	1.86B	1.7B	1.84B
EBITDA Margin %	0.23%	0.2%	0.19%	0.19%	0.2%	0.25%	0.26%	0.19%	0.18%	0.19%
EBITDA Growth %	0.31%	-0.1%	-0.06%	-0.02%	0.11%	0.49%	0.2%	-0.33%	-0.09%	0.08%
D&A (Non-Cash Add-back)	304M	249M	270M	309M	329M	361M	408M	437M	439M	493M
EBIT	1.26B	1.23B	1.18B	1.09B	1.26B	2.05B	2.75B	1.38B	1.29B	1.4B
Net Interest Income+	-153M	-143M	-151M	-167M	-175M	-163M	-151M	-138M	-152M	-201M
Interest Income	0	0	2M	2M	5M	3M	1M	10M	11M	25M
Interest Expense	153M	143M	153M	169M	180M	166M	152M	148M	163M	226M
Other Income/Expense	-101M	-142M	-135M	-175M	-98M	-12M	296M	-149M	-106M	-152M
Pretax Income+	1.1B	1.09B	1.03B	926M	1.13B	1.96B	2.68B	1.28B	1.16B	1.19B
Pretax Margin %	0.15%	0.14%	0.13%	0.12%	0.15%	0.21%	0.25%	0.13%	0.12%	0.12%
Income Tax+	373M	429M	241M	182M	247M	460M	597M	264M	248M	273M
Effective Tax Rate %	0.64%	0.59%	0.75%	0.79%	0.76%	0.73%	0.75%	0.74%	0.74%	0.73%
Net Income+	709M	645M	772M	736M	858M	1.43B	2B	946M	854M	871M
Net Margin %	0.09%	0.09%	0.1%	0.1%	0.11%	0.15%	0.18%	0.1%	0.09%	0.09%
Net Income Growth %	0.28%	-0.09%	0.2%	-0.05%	0.17%	0.67%	0.39%	-0.53%	-0.1%	0.02%
Net Income (Continuing)	753M	696M	824M	788M	886M	1.5B	2.08B	1.01B	908M	921M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	99M	109M	114M	128M	122M	132M	118M	114M	111M	118M
EPS (Diluted)+	4.87	4.51	5.50	5.29	6.29	10.52	15.53	7.98	7.52	7.69
EPS Growth %	0.28%	-0.07%	0.22%	-0.04%	0.19%	0.67%	0.48%	-0.49%	-0.06%	0.02%
EPS (Basic)	4.92	4.58	5.63	5.41	6.38	10.68	15.90	8.12	7.59	7.80
Diluted Shares Outstanding	145M	142M	140M	139M	136M	136M	128M	118M	113M	113M
Basic Shares Outstanding	144M	140M	137M	136M	134M	134M	125M	116M	112M	111M
Dividend Payout Ratio	0.3%	0.35%	0.32%	0.36%	0.33%	0.21%	0.15%	0.32%	0.37%	0.38%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.5B	1.53B	1.31B	1.39B	2.49B	3.06B	2.74B	1.9B	2.37B	2.39B
Cash & Short-Term Investments	133M	359M	137M	135M	1.19B	1.16B	872M	315M	686M	549M
Cash Only	133M	359M	137M	135M	1.19B	1.16B	872M	315M	686M	549M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	901M	926M	924M	1.01B	1.06B	1.52B	1.44B	1.2B	1.21B	1.3B
Days Sales Outstanding	43.89	44.98	43.75	49.05	50.22	58.79	48.65	44.13	47.74	48.21
Inventory	84M	82M	95M	99M	123M	223M	208M	192M	190M	188M
Days Inventory Outstanding	6.58	6.48	7.35	7.34	8.91	14.02	11.54	10.87	11.19	10.35
Other Current Assets	176M	9M	0	0	0	0	0	196M	286M	351M
Total Non-Current Assets+	8.46B	8.57B	9.2B	9.61B	10.35B	10.97B	10.87B	10.94B	11.65B	13.76B
Property, Plant & Equipment	925M	1.03B	1.15B	1.29B	1.97B	2.23B	2.3B	2.35B	2.42B	2.76B
Fixed Asset Turnover	8.10x	7.30x	6.73x	5.85x	3.92x	4.23x	4.68x	4.20x	3.83x	3.57x
Goodwill	5.91B	6B	6.33B	6.56B	6.62B	6.87B	7.09B	7.22B	7.73B	8.86B
Intangible Assets	984M	949M	1.12B	1.21B	1.12B	1.17B	1.17B	1.09B	1.17B	1.76B
Long-Term Investments	473M	443M	462M	436M	482M	521M	141M	132M	135M	123M
Other Non-Current Assets	174M	116M	132M	119M	160M	176M	163M	144M	198M	255M
Total Assets+	9.96B	10.1B	10.5B	11B	12.84B	14.03B	13.61B	12.84B	14.02B	16.15B
Asset Turnover	0.75x	0.74x	0.73x	0.68x	0.60x	0.67x	0.79x	0.77x	0.66x	0.61x
Asset Growth %	0.01%	0.01%	0.04%	0.05%	0.17%	0.09%	-0.03%	-0.06%	0.09%	0.15%
Total Current Liabilities+	1.17B	981M	1.06B	1.49B	1.99B	1.78B	1.75B	1.55B	1.81B	2.17B
Accounts Payable	279M	261M	224M	222M	263M	446M	357M	324M	378M	287M
Days Payables Outstanding	21.87	20.64	17.33	16.45	19.06	28.05	19.81	18.33	22.26	15.8
Short-Term Debt	159M	6M	107M	562M	1.04B	296M	269M	247M	585M	937M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	426M	395M	392M	435M	376M	489M	599M	550M	471M	466M
Current Ratio	1.28x	1.56x	1.24x	0.94x	1.25x	1.72x	1.56x	1.22x	1.31x	1.10x
Quick Ratio	1.21x	1.48x	1.15x	0.87x	1.19x	1.60x	1.44x	1.10x	1.20x	1.02x
Cash Conversion Cycle	28.61	30.82	33.77	39.93	40.07	44.77	40.39	36.66	36.67	42.76
Total Non-Current Liabilities+	4.01B	4.38B	4.41B	4.17B	5.09B	5.36B	5.3B	5.28B	5.79B	7.09B
Long-Term Debt	3.48B	3.72B	3.75B	3.4B	3.94B	3.99B	4.01B	3.98B	4.41B	5.6B
Capital Lease Obligations	13M	7M	0	32M	443M	524M	494M	489M	503M	551M
Deferred Tax Liabilities	157M	191M	170M	243M	264M	350M	290M	295M	270M	250M
Other Non-Current Liabilities	357M	463M	493M	502M	447M	497M	502M	517M	606M	688M
Total Liabilities	5.18B	5.36B	5.47B	5.66B	7.08B	7.13B	7.05B	6.83B	7.6B	9.26B
Total Debt+	3.65B	3.73B	3.85B	3.99B	5.42B	4.81B	4.77B	4.71B	5.5B	7.09B
Net Debt	3.52B	3.38B	3.72B	3.86B	4.22B	3.65B	3.9B	4.4B	4.81B	6.54B
Debt / Equity	0.76x	0.79x	0.77x	0.75x	0.94x	0.70x	0.73x	0.78x	0.86x	1.03x
Debt / EBITDA	2.14x	2.45x	2.69x	2.83x	3.47x	2.06x	1.71x	2.53x	3.23x	3.85x
Net Debt / EBITDA	2.07x	2.21x	2.59x	2.73x	2.71x	1.57x	1.40x	2.36x	2.83x	3.56x
Interest Coverage	9.14x	8.93x	7.61x	6.51x	6.84x	11.87x	15.66x	9.65x	7.74x	5.96x
Total Equity+	4.78B	4.74B	5.04B	5.34B	5.76B	6.89B	6.56B	6.01B	6.42B	6.9B
Equity Growth %	0.1%	-0.01%	0.06%	0.06%	0.08%	0.2%	-0.05%	-0.08%	0.07%	0.07%
Book Value per Share	32.99	33.36	35.96	38.45	42.38	50.67	51.27	50.91	56.80	61.03
Total Shareholders' Equity	4.68B	4.63B	4.92B	5.22B	5.64B	6.76B	6.44B	5.89B	6.31B	6.78B
Common Stock	2M	2M	2M	2M	2M	2M	2M	2M	2M	2M
Retained Earnings	6.2B	6.61B	7.14B	7.6B	8.17B	9.3B	7.65B	8.29B	8.82B	9.36B
Treasury Stock	-3.96B	-4.46B	-4.78B	-5B	-5.22B	-5.37B	-3.45B	-4.67B	-4.83B	-4.86B
Accumulated OCI	-38M	-72M	-48M	-59M	-39M	-21M	-14M	-21M	-14M	-88M
Minority Interest	99M	109M	114M	128M	122M	132M	118M	114M	111M	118M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	810M	1.07B	1.18B	1.2B	1.24B	2B	2.23B	1.72B	1.27B	1.33B
Operating CF Margin %	0.11%	0.14%	0.15%	0.16%	0.16%	0.21%	0.21%	0.17%	0.14%	0.14%
Operating CF Growth %	-0.14%	0.32%	0.1%	0.02%	0.04%	0.61%	0.11%	-0.23%	-0.26%	0.05%
Net Income	753M	696M	824M	788M	906M	1.5B	2.08B	1.01B	908M	921M
Depreciation & Amortization	304M	249M	270M	309M	329M	361M	408M	437M	439M	493M
Stock-Based Compensation	52M	69M	79M	61M	56M	97M	79M	77M	77M	88M
Deferred Taxes	112M	37M	9M	73M	15M	85M	-57M	1M	-49M	13M
Other Non-Cash Items	-36M	184M	309M	18M	-98M	-59M	-364M	69M	42M	20M
Working Capital Changes	-375M	-166M	-316M	-49M	35M	22M	87M	119M	-145M	-201M
Change in Receivables	-262M	-343M	-298M	-65M	-63M	-455M	81M	246M	-15M	-71M
Change in Inventory	-41M	42M	16M	4M	29M	0	-20M	0	0	0
Change in Payables	-31M	56M	-8M	-19M	73M	452M	35M	-149M	-55M	-67M
Cash from Investing+	-362M	-152M	-805M	-801M	-411M	-772M	21M	-543M	-1.06B	-2.55B
Capital Expenditures	-263M	-293M	-252M	-383M	-400M	-418M	-403M	-404M	-408M	-425M
CapEx % of Revenue	0.04%	0.04%	0.03%	0.05%	0.05%	0.04%	0.04%	0.04%	0.04%	0.04%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-263M	-293M	-252M	-383M	-309M	-415M	-400M	5M	-42M	41M
Cash from Financing+	-507M	-691M	-592M	-401M	225M	-1.27B	-2.54B	-1.73B	160M	1.08B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-212M	-223M	-247M	-266M	-286M	-297M	-309M	-305M	-314M	-331M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-58M	-19M	97M	63M	32M	160M	-30M	-17M	1M	23M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	547M	776M	923M	817M	843M	1.59B	1.83B	1.31B	864M	909M
FCF Margin %	0.07%	0.1%	0.12%	0.11%	0.11%	0.17%	0.17%	0.13%	0.09%	0.09%
FCF Growth %	-0.13%	0.42%	0.19%	-0.11%	0.03%	0.88%	0.15%	-0.28%	-0.34%	0.05%
FCF per Share	3.77	5.46	6.59	5.88	6.20	11.67	14.30	11.14	7.65	8.04
FCF Conversion (FCF/Net Income)	1.14x	1.66x	1.52x	1.63x	1.45x	1.40x	1.12x	1.82x	1.49x	1.53x
Interest Paid	172M	148M	159M	0	0	0	159M	156M	134M	262M
Taxes Paid	319M	361M	243M	0	0	0	283M	283M	317M	256M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	15.56%	13.55%	15.8%	14.18%	15.45%	22.62%	29.66%	15.05%	13.75%	13.08%
Return on Invested Capital (ROIC)	12.95%	11.67%	10.36%	9.2%	9.62%	14.4%	17%	10.26%	8.75%	8.19%
Gross Margin	37.85%	38.58%	38.79%	34.59%	34.8%	38.5%	39.02%	34.74%	33.17%	32.86%
Net Margin	9.46%	8.58%	10.01%	9.77%	11.11%	15.16%	18.49%	9.57%	9.23%	8.82%
Debt / Equity	0.76x	0.79x	0.77x	0.75x	0.94x	0.70x	0.73x	0.78x	0.86x	1.03x
Interest Coverage	9.14x	8.93x	7.61x	6.51x	6.84x	11.87x	15.66x	9.65x	7.74x	5.96x
FCF Conversion	1.14x	1.66x	1.52x	1.63x	1.45x	1.40x	1.12x	1.82x	1.49x	1.53x
Revenue Growth	0.78%	0.29%	2.58%	-2.31%	2.59%	22.15%	14.32%	-8.39%	-6.38%	6.7%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Diagnostic Information Services Business	6.96B	-	-	-	-	-	-	9.61B	8.98B	9.61B
Diagnostic Information Services Business Growth	-	-	-	-	-	-	-	-	-6.59%	7.11%
Others	528M	377M	339M	327M	321M	-	-	274M	276M	-
Others Growth	-	-28.60%	-10.08%	-3.54%	-1.83%	-	-	-	0.73%	-
Routine clinical testing services	-	4.18B	4.31B	4.22B	4.21B	3.84B	4.29B	-	-	-
Routine clinical testing services Growth	-	-	3.11%	-2.14%	-0.26%	-8.80%	11.91%	-	-	-
Gene-based and esoteric testing services	-	-	-	-	-	2.1B	2.88B	-	-	-
Gene-based and esoteric testing services Growth	-	-	-	-	-	-	37.18%	-	-	-
COVID-19 Testing Services	-	-	-	-	-	2.72B	2.77B	-	-	-
COVID-19 Testing Services Growth	-	-	-	-	-	-	1.73%	-	-	-
Anatomic pathology testing services	-	624M	612M	578M	579M	482M	553M	-	-	-
Anatomic pathology testing services Growth	-	-	-1.92%	-5.56%	0.17%	-16.75%	14.73%	-	-	-
All other services	-	-	-	-	-	298M	294M	-	-	-
All other services Growth	-	-	-	-	-	-	-1.34%	-	-	-

Frequently Asked Questions

Valuation & Price

Quest Diagnostics Incorporated (DGX) has a price-to-earnings (P/E) ratio of 24.7x. This is roughly in line with market averages.

Growth & Financials

Quest Diagnostics Incorporated (DGX) reported $10.85B in revenue for fiscal year 2024. This represents a 44% increase from $7.51B in 2011.

Quest Diagnostics Incorporated (DGX) grew revenue by 6.7% over the past year. This is steady growth.

Yes, Quest Diagnostics Incorporated (DGX) is profitable, generating $969.0M in net income for fiscal year 2024 (8.8% net margin).

Dividend & Returns

Yes, Quest Diagnostics Incorporated (DGX) pays a dividend with a yield of 1.54%. This makes it attractive for income-focused investors.

Quest Diagnostics Incorporated (DGX) has a return on equity (ROE) of 13.1%. This is reasonable for most industries.

Quest Diagnostics Incorporated (DGX) generated $1.39B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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