Fundamental analysis: Quest Diagnostics Incorporated (DGX)

Awarener score: 8.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Average) and growth (Modest), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business growth has been almost stagnant. It's been weak when measured against peer companies.
Quest Diagnostics Incorporated business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 8.0

DGX profit margins -on goods and services sold- are usually good. They stand slightly worse than rival companies.
Business profit on sales tends to be excellent. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain great when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 6.4

Quest Diagnostics Incorporated profit -on goods and services sold- has been growing at a good pace. It's been rather normal in relation to competitors.
In recent years, earnings -on operations- have been growing at a normal step, which has been slightly worse than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares similar to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be rather normal in relation to similar stocks.
In past years, profits -before income taxes- grew at a good speed. It was slightly better than rivals.
In the previous years, growth on total net profit has been average, and almost average when measured against peer companies.
Earnings per share have grown at a good rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 5.0

DGX had to pay some income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

Quest Diagnostics Incorporated usually gets huge returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 7.0

DGX usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands top tier when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came somewhat better than competitors.
Dividend payments have been more or less stable in recent years. The company has behaved rather normal in relation to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks mediocre against comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 6.0

Quest Diagnostics Incorporated intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be lacking compared to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains mediocre against rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks substantially worse when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's close to average when compared to peer firms.
For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on a month and a half credit. It still ranks more than average in relation to peers.
Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as excellent in relation to competitors.
On average, it takes less than three months from the purchase to charging customers. It happens to be better than most peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks more than average in relation to industry peers.
The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands slightly worse than rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.7

Quest Diagnostics Incorporated looks reasonable in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company generated some good free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
The company is somewhat indebted, loan repayment needs to be taken into account. It looks mediocre against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still impressive in relation to peer companies.

Total score: 6.8

Company at a glance: Quest Diagnostics Incorporated (DGX)

Sector, industry: Healthcare, Diagnostics & Research

Market Cap: 15.42 billions

Revenues TTM: 10.29 billions

Quest 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.