Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the US.
It is a $25.5B healthcare company. Revenue grew 9.9% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~3.5 years of free cash flow. It trades at 24.0× earnings — near the highest of its own history.
- Website
- questdiagnostics.com
- Location
- Secaucus, NJ
- Employees
- 57 000
- Sector
- Healthcare
- Founded
- 1988
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong quality; Growth, Profitability and Health lag behind.
Valuation52
- P/E vs own history95th pct · 0/25
- FCF yield5.3% · 20/25
- P/S2.2x · 20/25
- EV/EBITDA17.1x · 12/25
Growth26
- Revenue CAGR0.6% · 6/25
- Net income CAGR-16.0% · 0/25
- EPS CAGR ~5Y-3.5% · 0/25
- Fwd implied growth20.7% · 20/25
Profitability49
- ROIC8.3% · 12/25
- ROE14.5% · 12/25
- Net margin9.2% · 13/25
- Operating margin14.1% · 12/25
Health48
- Altman Zn/a · 0/25
- Current ratio1.59 · 18/25
- Interest coverage6.4x · 18/25
- Net cash / debtD/A 29% · 12/25
Quality97
- Piotroski F7/9 · 22/25
- Beneish M-2.71 · 25/25
- FCF conversion127% · 25/25
- Margin stabilityσ 3.1% · 25/25
Moat62
- ROIC >12% years3/10 yrs · 6/25
- Median gross margin34.8% · 13/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 8.6% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2025AcquisitionQuest acquired select assets of Fresenius Medical Care's Spectra laboratories
- FY2021FinancialRevenue crossed $10B$10.8B for the year
- FY2021FinancialBest year on record$2.00B net income
- 2020ProductThe company launched a COVID-19 testing service
- 2018ProductQuest launched QuestDirect, a consumer-initiated testing service that allows patients to order…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$7.51B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2007AcquisitionQuest acquired diagnostic testing equipment company AmeriPath
- Dec 31, 1996MilestoneQuest Diagnostics became an independent company as a spin-off from Corning
- 1988FoundedThe purchase of SmithKline Beecham also included the lab's medical sample transport airline originally founded in 1988
- 1982AcquisitionMetPath was acquired by what was then known as Corning Glass Works and was subsequently renamed Corning…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Interest covered 6.4× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+9.9% YoY
- Profitable — makes more than it spends$1.06B TTM
- Profit growing — earnings are higher than last year+3.1% YoY
- Generates cash — cash left after running and investing$1.35B TTM
- Debt under control — could handle its obligations~3.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$25.5B market cap
- Not printing shares — share count not ballooning — you keep your slice-17.1% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 36/100
- Pays a dividend — returns cash to shareholdersyield 1.42%
- Valuation not extreme — price not wildly above earningsP/E 24.0
Peer comparisonQuest Diagnostics Inc. vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| DGX this company | $25.5B | 24.0 | +9.9% | 9.2% | Mixed |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: DGX vs LLY · DGX vs JNJ · DGX vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/DGX
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Deeper analysis of DGX on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $230.97 · market cap $25.5B.