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Quest DiagnosticsFRA:QDI -1.17%78 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates FRA:QDI with a GF Score™ of 78/100 and a GF Value™ of €166.27 (Fairly Valued). The stock has 8 warning signs investors should review. Among 192 Medical Diagnostics & Research companies, Quest Diagnostics ranks better than 99.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Quest Diagnostics's annualized net income for the quarter that ended in Mar. 2026 was €872 Mil. Quest Diagnostics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-2,958 Mil. Therefore, Quest Diagnostics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Quest Diagnostics's Return-on-Tangible-Equity or its related term are showing as below:
FRA:QDI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
FRA:QDI's Return-on-Tangible-Equity is ranked better than 99.48% of 192
companies
in the Medical Diagnostics & Research industry
Industry Median: -0.605
vs FRA:QDI: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Quest Diagnostics Return-on-Tangible-Equity Related Terms
Quest Diagnostics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Quest Diagnostics's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:QDI vs LH, MTD, GH: Return-on-Tangible-Equity Comparison
For the Diagnostics & Research subindustry, Quest Diagnostics's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Quest Diagnostics Return-on-Tangible-Equity vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Quest Diagnostics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Quest Diagnostics's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Quest Diagnostics (FRA:QDI) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Quest Diagnostics and its competitors. According to the industry distribution chart, Quest Diagnostics ranks #1 out of 192 companies in the Medical Diagnostics & Research industry, placing it in the top 0.5%.
Is Quest Diagnostics' Return-on-Tangible-Equity too high?
Quest Diagnostics' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Quest Diagnostics ranks #1 out of 192 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Quest Diagnostics has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Quest Diagnostics' Return-on-Tangible-Equity compare to LH and MTD?
According to the Medical Diagnostics & Research industry distribution chart, Quest Diagnostics ranks #1 out of 192 companies for Return-on-Tangible-Equity. This places Quest Diagnostics in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Medical Diagnostics & Research company?
A good Return-on-Tangible-Equity depends on the Medical Diagnostics & Research industry context. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Quest Diagnostics and its competitors. Quest Diagnostics's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quest Diagnostics stock overvalued right now?
Based on GuruFocus' analysis, Quest Diagnostics (FRA:QDI) is currently considered Fairly Valued. The stock's GF Value™ is €166.27, compared to a current price of €181.10 — trading 8.9% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Quest Diagnostics' overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Quest Diagnostics (FRA:QDI), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Quest Diagnostics (FRA:QDI) Overvalued in 2026?
Based on GuruFocus' analysis, Quest Diagnostics stock appears to be overvalued.
The current stock price of €181.10 is trading 8.9% above its estimated GF Value™ of €166.27.
GuruFocus considers Quest Diagnostics to be Fairly Valued.
No single metric tells the full story. See the FRA:QDI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
78GF Score
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