📊 DGX Key Takeaways
Is Quest Diagnostics Inc. (DGX) a Good Investment?
Quest Diagnostics exhibits severe data integrity red flags—including an impossible 125.5% gross margin and implausible 84,784% revenue growth—that undermine analytical reliability. Underlying fundamentals reveal weak returns (3.4% ROE, 1.5% ROA), tight liquidity (1.08x quick ratio), and anemic free cash flow generation (5.7% FCF margin), suggesting operational inefficiency or significant accounting anomalies.
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
- Reasonable operating margin of 13.8% indicates core business profitability
- Manageable leverage with 0.70x debt-to-equity ratio
- Adequate interest coverage of 4.2x provides debt service cushion
- 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
- Gross margin exceeding 100% is mathematically impossible—indicates critical data quality issues
- Extremely low ROE (3.4%) and ROA (1.5%) suggest severe asset underutilization or accounting treatment problems
- Tight quick ratio (1.08x) and weak FCF margin (5.7%) indicate constrained liquidity and poor cash generation
- 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
- Gross margin (validate data integrity—must be <100%)
- Revenue reconciliation and YoY growth normalization
- Return on equity trend and operational efficiency drivers
- 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 |
|---|---|---|---|
| Q1 2026 | $2.7B | $220.0M | $1.94 |
| 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 |
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 SELL from Claude (SELL) and ChatGPT (HOLD) with 59% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DGX's key strengths?
Claude: Reasonable operating margin of 13.8% indicates core business profitability. Manageable leverage with 0.70x debt-to-equity ratio. 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: Gross margin exceeding 100% is mathematically impossible—indicates critical data quality issues. Extremely low ROE (3.4%) and ROA (1.5%) suggest severe asset underutilization or accounting treatment problems. 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 $2.9B.
Does DGX pay dividends?
Quest Diagnostics Inc. pays dividends, with $88.0M 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 $2.24.
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 May 2026, Quest Diagnostics Inc. has a SELL rating with 59% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DGX stock overvalued or undervalued?
Valuation metrics for DGX: ROE of 3.4% (sector avg: 15%), net margin of 8.7% (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 SELL 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 $278.0M, with capital expenditures of $114.0M. FCF margin is 5.7%.
How does DGX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.7% (avg: 12%), ROE 3.4% (avg: 15%), current ratio 1.18 (avg: 2).