📊 DGX Key Takeaways
Investment Thesis
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.
DGX 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
DGX 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
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
DGX Financial Metrics
💡 AI Analyst Insight
QUEST DIAGNOSTICS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DGX Profitability Ratios
DGX vs Healthcare Sector
How QUEST DIAGNOSTICS INC compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DGX Balance Sheet & Liquidity
DGX 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 Growth Metrics (YoY)
DGX Quarterly 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.
DGX Capital Allocation
DGX SEC Filings
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 an AI rating of BUY with 78% 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.
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.
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.