📊 DGX Key Takeaways
Is Quest Diagnostics Inc. (DGX) a Good Investment?
Quest Diagnostics demonstrates solid operational fundamentals with strong profitability margins (9.0% net margin, 14.1% operating margin) and robust free cash flow generation ($1.4B FCF). The company maintains a conservative balance sheet with manageable leverage (0.79x debt/equity) and excellent interest coverage (16.2x), though the extreme revenue growth figure (84784.6% YoY) suggests data anomaly that warrants verification.
Quest Diagnostics shows solid core fundamentals with healthy margins, strong free cash flow generation, and manageable leverage supported by strong interest coverage. However, growth quality looks mixed because net income declined, liquidity is only adequate, and the reported revenue surge appears inconsistent with the rest of the financial profile, raising caution around trend interpretation.
Why Buy Quest Diagnostics Inc. Stock? DGX Key Strengths
- Strong free cash flow generation ($1.4B) covering 265% of capital expenditures, providing flexibility for shareholder returns and debt reduction
- Solid profitability with 32.9% gross margin and 14.1% operating margin indicating pricing power and operational efficiency in laboratory services
- Conservative financial leverage (0.79x debt/equity, 16.2x interest coverage) with 3.2x net debt/FCF ratio suggesting sustainable debt levels
- Consistent ROE of 13.8% and ROA of 6.1% demonstrate effective capital deployment
- Consistent profitability with 32.9% gross margin, 14.1% operating margin, and 9.0% net margin
- Strong cash generation with $1.89B operating cash flow and $1.36B free cash flow, supporting reinvestment and financial flexibility
- Balanced leverage profile with 0.79x debt-to-equity and 16.2x interest coverage, indicating debt is currently serviceable
DGX Stock Risks: Quest Diagnostics Inc. Investment Risks
- Liquidity metrics show tightness with current ratio of 1.04x and quick ratio of 0.96x, limiting near-term financial flexibility
- High absolute debt burden of $5.7B against $7.2B equity; elevated leverage in healthcare sector facing regulatory and reimbursement pressures
- Net income declined 5.2% YoY despite revenue growth anomaly, suggesting operational headwinds or one-time items affecting profitability
- Significant insider filing activity (30 Form 4s in 90 days) warrants investigation for potential negative sentiment or restricted stock vesting
- Net income declined 5.2% year over year, suggesting earnings growth is under pressure despite higher EPS
- Liquidity is only modest with a 1.04x current ratio and 0.96x quick ratio, leaving limited short-term cushion
- Reported revenue growth of +84784.6% appears anomalous, making revenue trend and growth quality harder to trust without further validation
Key Metrics to Watch
- Organic revenue growth excluding potential data anomalies and reimbursement rate trends
- Operating margin sustainability amid labor cost inflation and diagnostic pricing pressures
- Free cash flow conversion and debt paydown trajectory targeting improved leverage ratios
- Current ratio improvement and working capital management to strengthen liquidity position
- Organic revenue growth and whether sales normalize after the apparent reporting anomaly
- Free cash flow conversion and net income trend relative to debt levels and capital spending
Quest Diagnostics Inc. (DGX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Quest Diagnostics Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DGX Profit Margin, ROE & Profitability Analysis
DGX vs Healthcare Sector: How Quest Diagnostics Inc. Compares
How Quest Diagnostics Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quest Diagnostics Inc. Stock Overvalued? DGX Valuation Analysis 2026
Based on fundamental analysis, Quest Diagnostics Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quest Diagnostics Inc. Balance Sheet: DGX Debt, Cash & Liquidity
DGX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quest Diagnostics Inc.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $7.49 reflects profitable operations.
DGX Revenue Growth, EPS Growth & YoY Performance
DGX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | $226.0M | $1.99 |
| Q2 2025 | $2.4B | $229.0M | $2.03 |
| Q1 2025 | $2.4B | $194.0M | $1.72 |
| Q3 2024 | $2.3B | $225.0M | $1.96 |
| Q2 2024 | $2.3B | $229.0M | $2.03 |
| Q1 2024 | $2.3B | $194.0M | $1.72 |
| Q3 2023 | $2.3B | $225.0M | $1.96 |
| Q2 2023 | $2.3B | $234.0M | $1.96 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quest Diagnostics Inc. Dividends, Buybacks & Capital Allocation
DGX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quest Diagnostics Inc. (CIK: 0001022079)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DGX
What is the AI rating for DGX?
Quest Diagnostics Inc. (DGX) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DGX's key strengths?
Claude: Strong free cash flow generation ($1.4B) covering 265% of capital expenditures, providing flexibility for shareholder returns and debt reduction. Solid profitability with 32.9% gross margin and 14.1% operating margin indicating pricing power and operational efficiency in laboratory services. ChatGPT: Consistent profitability with 32.9% gross margin, 14.1% operating margin, and 9.0% net margin. Strong cash generation with $1.89B operating cash flow and $1.36B free cash flow, supporting reinvestment and financial flexibility.
What are the risks of investing in DGX?
Claude: Liquidity metrics show tightness with current ratio of 1.04x and quick ratio of 0.96x, limiting near-term financial flexibility. High absolute debt burden of $5.7B against $7.2B equity; elevated leverage in healthcare sector facing regulatory and reimbursement pressures. ChatGPT: Net income declined 5.2% year over year, suggesting earnings growth is under pressure despite higher EPS. Liquidity is only modest with a 1.04x current ratio and 0.96x quick ratio, leaving limited short-term cushion.
What is DGX's revenue and growth?
Quest Diagnostics Inc. reported revenue of $11.0B.
Does DGX pay dividends?
Quest Diagnostics Inc. pays dividends, with $353.0M distributed to shareholders in the trailing twelve months.
Where can I find DGX SEC filings?
Official SEC filings for Quest Diagnostics Inc. (CIK: 0001022079) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DGX's EPS?
Quest Diagnostics Inc. has a diluted EPS of $8.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DGX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Quest Diagnostics Inc. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DGX stock overvalued or undervalued?
Valuation metrics for DGX: ROE of 13.8% (sector avg: 15%), net margin of 9.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DGX stock in 2026?
Our dual AI analysis gives Quest Diagnostics Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DGX's free cash flow?
Quest Diagnostics Inc.'s operating cash flow is $1.9B, with capital expenditures of $527.0M. FCF margin is 12.3%.
How does DGX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 9.0% (avg: 12%), ROE 13.8% (avg: 15%), current ratio 1.04 (avg: 2).