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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.06
DGX's Cash to Debt is ranked lower than
58% of the 182 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 10.63 vs. DGX: 0.06 )
DGX' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.44
Current: 0.06

0.02
0.44
Equity to Asset 0.44
DGX's Equity to Asset is ranked higher than
54% of the 169 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.68 vs. DGX: 0.44 )
DGX' s 10-Year Equity to Asset Range
Min: 0.3   Max: 0.56
Current: 0.44

0.3
0.56
Interest Coverage 9.10
DGX's Interest Coverage is ranked higher than
52% of the 103 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 138.50 vs. DGX: 9.10 )
DGX' s 10-Year Interest Coverage Range
Min: 1.82   Max: 17.57
Current: 9.1

1.82
17.57
F-Score: 5
Z-Score: 3.14
M-Score: -2.38
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 20.64
DGX's Operating margin (%) is ranked higher than
93% of the 168 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.31 vs. DGX: 20.64 )
DGX' s 10-Year Operating margin (%) Range
Min: -37.2   Max: 20.64
Current: 20.64

-37.2
20.64
Net-margin (%) 11.88
DGX's Net-margin (%) is ranked higher than
89% of the 168 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.95 vs. DGX: 11.88 )
DGX' s 10-Year Net-margin (%) Range
Min: -38.73   Max: 11.88
Current: 11.88

-38.73
11.88
ROE (%) 21.50
DGX's ROE (%) is ranked higher than
95% of the 161 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.30 vs. DGX: 21.50 )
DGX' s 10-Year ROE (%) Range
Min: -116.19   Max: 21.81
Current: 21.5

-116.19
21.81
ROA (%) 9.49
DGX's ROA (%) is ranked higher than
90% of the 173 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.69 vs. DGX: 9.49 )
DGX' s 10-Year ROA (%) Range
Min: -44.87   Max: 11.87
Current: 9.49

-44.87
11.87
ROC (Joel Greenblatt) (%) 136.45
DGX's ROC (Joel Greenblatt) (%) is ranked higher than
97% of the 172 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 5.52 vs. DGX: 136.45 )
DGX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -113.86   Max: 136.45
Current: 136.45

-113.86
136.45
Revenue Growth (%) 4.00
DGX's Revenue Growth (%) is ranked higher than
68% of the 134 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 6.40 vs. DGX: 4.00 )
DGX' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 15.4
Current: 4

0
15.4
EBITDA Growth (%) 9.40
DGX's EBITDA Growth (%) is ranked higher than
77% of the 115 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 6.00 vs. DGX: 9.40 )
DGX' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 44.5
Current: 9.4

0
44.5
EPS Growth (%) 9.40
DGX's EPS Growth (%) is ranked higher than
78% of the 111 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.10 vs. DGX: 9.40 )
DGX' s 10-Year EPS Growth (%) Range
Min: 0   Max: 62.3
Current: 9.4

0
62.3
» DGX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

DGX Guru Trades in Q2 2013

Ray Dalio 4,598 sh (New)
Chuck Royce 121,000 sh (+38.44%)
Alan Fournier 517,400 sh (+17.59%)
Robert Olstein 83,000 sh (+7.79%)
Richard Pzena 665,375 sh (+1.37%)
HOTCHKIS & WILEY 1,294,300 sh (+0.99%)
Bernard Horn 42,933 sh (unchged)
John Rogers 7,445 sh (unchged)
Brian Rogers 2,200,000 sh (unchged)
Jeff Auxier 10,550 sh (unchged)
Murray Stahl 6,600 sh (unchged)
Louis Moore Bacon Sold Out
Steven Cohen 10,620 sh (-1.79%)
Diamond Hill Capital 1,895,222 sh (-2.98%)
David Dreman 40,678 sh (-11.79%)
Jeremy Grantham 1,848,142 sh (-23.77%)
Jim Simons 418,500 sh (-50.61%)
Joel Greenblatt 31,194 sh (-64.8%)
» More
Q3 2013

DGX Guru Trades in Q3 2013

Paul Tudor Jones 3,600 sh (New)
John Rogers 48,939 sh (+557.34%)
Jeff Auxier 61,050 sh (+478.67%)
HOTCHKIS & WILEY 2,095,900 sh (+61.93%)
Joel Greenblatt 44,062 sh (+41.25%)
Chuck Royce 155,850 sh (+28.8%)
Diamond Hill Capital 1,954,720 sh (+3.14%)
Richard Pzena 670,650 sh (+0.79%)
Murray Stahl 6,650 sh (+0.76%)
David Dreman 40,690 sh (+0.03%)
Robert Olstein 83,000 sh (unchged)
Brian Rogers 2,200,000 sh (unchged)
Bernard Horn 42,933 sh (unchged)
Ray Dalio Sold Out
Alan Fournier 425,700 sh (-17.72%)
Jeremy Grantham 1,466,042 sh (-20.67%)
Steven Cohen 4,302 sh (-59.49%)
Jim Simons 127,700 sh (-69.49%)
» More
Q4 2013

DGX Guru Trades in Q4 2013

Steven Cohen 63,695 sh (+1380.59%)
Paul Tudor Jones 26,689 sh (+641.36%)
Joel Greenblatt 279,188 sh (+533.63%)
John Rogers 268,053 sh (+447.73%)
Richard Pzena 1,215,050 sh (+81.17%)
Jeff Auxier 80,350 sh (+31.61%)
Brian Rogers 2,750,000 sh (+25%)
Robert Olstein 93,000 sh (+12.05%)
Murray Stahl 7,400 sh (+11.28%)
Chuck Royce 171,100 sh (+9.79%)
Diamond Hill Capital 2,049,646 sh (+4.86%)
Bernard Horn 42,933 sh (unchged)
Jim Simons Sold Out
HOTCHKIS & WILEY 2,017,600 sh (-3.74%)
David Dreman 29,218 sh (-28.19%)
Alan Fournier 237,778 sh (-44.14%)
Jeremy Grantham 377,008 sh (-74.28%)
» More
Q1 2014

DGX Guru Trades in Q1 2014

Brian Rogers 3,000,000 sh (+9.09%)
» More
» Details

Insider Trades

Latest Guru Trades with DGX

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 533.63%0.3%$52.79 - $63.7 $ 59.480%279188
David Dreman 2013-12-31 Reduce -28.19%0.06%$52.79 - $63.7 $ 59.480%29218
Joel Greenblatt 2013-09-30 Add 41.25%0.03%$57.96 - $62.48 $ 59.48-1%44062
Ray Dalio 2013-09-30 Sold Out $57.96 - $62.48 $ 59.48-1%0
Joel Greenblatt 2013-06-30 Reduce -64.8%0.16%$55.48 - $63.2 $ 59.480%31194
Ray Dalio 2013-06-30 New Buy$55.48 - $63.2 $ 59.480%4598
Vanguard Health Care Fund 2013-03-31 Sold Out 1%$55.42 - $61.83 $ 59.484%0
David Dreman 2013-03-31 New Buy0.07%$55.42 - $61.83 $ 59.484%46116
Joel Greenblatt 2013-03-31 Add 32.8%0.06%$55.42 - $61.83 $ 59.484%88614
Joel Greenblatt 2012-12-31 Add 131.43%0.12%$56.31 - $64.68 $ 59.480%66725
Joel Greenblatt 2012-09-30 Reduce -38.41%0.08%$57.25 - $63.51 $ 59.48-2%28832
Joel Greenblatt 2012-06-30 Add 62.64%0.08%$53.74 - $61.77 $ 59.483%46812
Ray Dalio 2012-06-30 Sold Out 0.03%$53.74 - $61.77 $ 59.483%0
Joel Greenblatt 2012-03-31 Add 611.37%0.13%$56.5 - $61.21 $ 59.488%28782
Ray Dalio 2012-03-31 New Buy0.03%$56.5 - $61.21 $ 59.488%34998
Joel Greenblatt 2011-12-31 Reduce -66.54%0.06%$46.29 - $59.18 $ 59.489%4046
Ray Dalio 2011-12-31 Sold Out 0.04%$46.29 - $59.18 $ 59.489%0
Daniel Loeb 2011-09-30 Sold Out 0.8762%$46.21 - $60.59 $ 59.4815%0
Joel Greenblatt 2011-09-30 Reduce -54.59%0.12%$46.21 - $60.59 $ 59.4815%12092
Daniel Loeb 2011-06-30 New Buy0.88%$55.56 - $60.83 $ 59.482%400000
James Barrow 2011-03-31 Sold Out $53.13 - $58.97 $ 59.486%0
John Hussman 2011-03-31 Sold Out $53.13 - $58.97 $ 59.486%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Quest Diagnostics Inc

Diamond Hill Capital Comments on Quest Diagnostics - Mar 05, 2014

Medical diagnostic testing provider Quest Diagnostics, Inc. (DGX) underperformed due to weakness in both volumes and pricing.



From Diamond Hill Capital (Trades, Portfolio)'s Fourth Quarter 2013 Commentary.

Check out Diamond Hill Capital latest stock trades

Top Ranked Articles about Quest Diagnostics Inc

Medical Diagnostic Labs Facing Medicare Headwinds
Currently medical diagnostic lab stocks are trading at near historical lows for price-to-sales (P/S). At first sight these companies might look like bargains, but lower p/s ratios might be the new normal for these companies. I have taken a closer look at Lab Corp of America (LH), Quest Diagnostics (DGX), and Bio-Reference Labs (BRLI). Read more...
Diamond Hill Capital Comments on Quest Diagnostics
Medical diagnostic testing provider Quest Diagnostics, Inc. (DGX) underperformed due to weakness in both volumes and pricing. Read more...
Numerous Gurus Hold IDCC, DGX, PTR at 10-Year Low P/B
According to the GuruFocus Value Screen that shows value strategies of stocks traded at historical low P/B ratios, InterDigital Inc. (IDCC), Quest Diagnostics Inc. (DGX) and PetroChina Co. Ltd. (PTR) are held by numerous gurus and are traded at or near their 10-year low. Furthermore, insiders are selling IDCC and DGX. Read more...
DGX, STO, LSE:DOM - Gurus Hold Stocks Traded at 10-Year Low P/B
According to the GuruFocus Value Screen that shows value strategies of stocks traded at historical low P/B ratios, Quest Diagnostics Inc. (DGX), Statoil ASA (STO) and Domino’s Pizza Group PLC (LSE:DOM) are stocks owned by gurus and traded at or near their 10-year historical low P/B ratios. Check out these company updates and trade highlights as of the third quarter of 2013. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 10.70
DGX's P/E(ttm) is ranked higher than
90% of the 93 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 24.90 vs. DGX: 10.70 )
DGX' s 10-Year P/E(ttm) Range
Min: 9.13   Max: 31.21
Current: 10.7

9.13
31.21
P/B 2.19
DGX's P/B is ranked higher than
79% of the 155 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.69 vs. DGX: 2.19 )
DGX' s 10-Year P/B Range
Min: 1.87   Max: 4.43
Current: 2.19

1.87
4.43
P/S 1.27
DGX's P/S is ranked higher than
87% of the 170 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 3.47 vs. DGX: 1.27 )
DGX' s 10-Year P/S Range
Min: 1.03   Max: 2.24
Current: 1.27

1.03
2.24
PFCF 21.32
DGX's PFCF is ranked higher than
67% of the 81 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 20.94 vs. DGX: 21.32 )
DGX' s 10-Year PFCF Range
Min: 8.22   Max: 21.5
Current: 21.32

8.22
21.5
EV-to-EBIT 7.95
DGX's EV-to-EBIT is ranked higher than
93% of the 109 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 19.60 vs. DGX: 7.95 )
DGX' s 10-Year EV-to-EBIT Range
Min: 7.2   Max: 14.2
Current: 7.95

7.2
14.2
PEG 1.63
DGX's PEG is ranked higher than
83% of the 53 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.92 vs. DGX: 1.63 )
DGX' s 10-Year PEG Range
Min: 0.45   Max: 4.43
Current: 1.63

0.45
4.43
Shiller P/E 14.91
DGX's Shiller P/E is ranked higher than
96% of the 53 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 34.47 vs. DGX: 14.91 )
DGX' s 10-Year Shiller P/E Range
Min: 12.73   Max: 50.77
Current: 14.91

12.73
50.77

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.10
DGX's Dividend Yield is ranked higher than
81% of the 54 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.28 vs. DGX: 2.10 )
DGX' s 10-Year Dividend Yield Range
Min: 0.35   Max: 2.36
Current: 2.1

0.35
2.36
Dividend Payout 0.30
DGX's Dividend Payout is ranked higher than
54% of the 46 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.27 vs. DGX: 0.30 )
DGX' s 10-Year Dividend Payout Range
Min: 0.07   Max: 0.29
Current: 0.3

0.07
0.29
Dividend growth (3y) 55.40
DGX's Dividend growth (3y) is ranked higher than
89% of the 18 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 40.20 vs. DGX: 55.40 )
DGX' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 55.4
Current: 55.4

0
55.4
Yield on cost (5-Year) 8.90
DGX's Yield on cost (5-Year) is ranked higher than
95% of the 57 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.36 vs. DGX: 8.90 )
DGX' s 10-Year Yield on cost (5-Year) Range
Min: 1.48   Max: 10.01
Current: 8.9

1.48
10.01
Share Buyback Rate 4.80
DGX's Share Buyback Rate is ranked higher than
96% of the 138 Companies
in the Global Diagnostics & Research industry.

( Industry Median: -3.60 vs. DGX: 4.80 )
DGX' s 10-Year Share Buyback Rate Range
Min: 0   Max: -17.7
Current: 4.8

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.76
DGX's Price/DCF (Projected) is ranked higher than
95% of the 76 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.80 vs. DGX: 0.76 )
DGX' s 10-Year Price/DCF (Projected) Range
Min: 0.68   Max: 2.61
Current: 0.76

0.68
2.61
Price/Median PS Value 0.90
DGX's Price/Median PS Value is ranked higher than
79% of the 147 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 1.15 vs. DGX: 0.90 )
DGX' s 10-Year Price/Median PS Value Range
Min: 0.23   Max: 1.43
Current: 0.9

0.23
1.43
Price/Peter Lynch Fair Value 1.96
DGX's Price/Peter Lynch Fair Value is ranked higher than
73% of the 30 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 2.21 vs. DGX: 1.96 )
DGX' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.7   Max: 3.65
Current: 1.96

0.7
3.65
Earnings Yield (Greenblatt) 12.60
DGX's Earnings Yield (Greenblatt) is ranked higher than
87% of the 122 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 4.70 vs. DGX: 12.60 )
DGX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 7   Max: 13.9
Current: 12.6

7
13.9
Forward Rate of Return (Yacktman) 12.50
DGX's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 138 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 0.75 vs. DGX: 12.50 )
DGX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 11.7   Max: 34.7
Current: 12.5

11.7
34.7

Business Description

Industry: Medical Diagnostics & Research » Diagnostics & Research
Compare:LH, ALR, LIFE, ENZ, IDXX » details
Traded in other countries:QDI.Germany
Quest Diagnostics Inc was incorporated in Delaware in 1990. The Company and its subsidiaries are the providers of diagnostic testing, information and services, providing insights that enable patients and physicians to make better healthcare decisions. The Company offers U.S. patients and physicians the broadest access to diagnostic testing services through its nationwide network of laboratories and Company-owned patient service centers. It provides interpretive consultation through the largest medical and scientific staff in the industry, including hundreds of M.D.s and Ph.D.s, primarily located in the United States. The Company is a provider of clinical testing, including gene-based and esoteric testing and anatomic pathology services, and provider of risk assessment services for the life insurance industry. The Company is also a provider of testing for clinical trials and testing for drugs of abuse. The Company's diagnostics products business manufactures and markets diagnostic test kits and specialized point-of-care testing. The Company empowers healthcare organizations and clinicians with state-of-the-art information technology solutions that can improve patient care and medical practice. It is the commercial clinical testing company. It offers customers the access to the extensive test menu of clinical and anatomic pathology tests in the United States. It performs routine testing through its network of major laboratories and rapid response laboratories. It is a provider of cancer diagnostics, including anatomic pathology services, in the United States. Gene-based and other esoteric tests increasingly are ordered by physicians to assist them in the diagnostic process, to establish a prognosis and to choose or monitor a therapeutic regimen. Esoteric tests include procedures in the areas of molecular diagnostics, protein chemistry, cellular immunology and advanced microbiology. The Company is an innovator in the clinical testing industry, with capabilities ranging from early discovery to validation of clinical tests. It develops tests at its laboratories, such as Quest Diagnostics Nichols Institute; it also develops innovative techniques in anatomic pathology. Its industry remains fragmented and highly competitive. The Company mainly competes with three types of clinical testing providers: hospital-affiliated laboratories, other commercial clinical laboratories and physician-office laboratories. The Company's businesses are subject to or impacted by extensive and frequently changing laws and regulations in the United States at both the federal and state levels and the other jurisdictions in which it conduct business.

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