Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin14.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin9.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt6.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$5.1B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$100M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$1.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income53.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.1B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit33.2%
Operating Margin14.1%
Net Margin9.0%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
33.2%▲
32.9%▼
33.0%▼
34.7%•
N/A
Operating Margin %
14.1%▲
13.6%▼
13.6%▼
14.4%•
N/A
Net Income %
9.0%▲
8.8%▼
9.2%▼
9.6%•
N/A
Diluted EPS
8.75▲
7.69▲
7.49▼
7.97•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$16.2B
$16.2B
$14.0B
$12.8B
N/A
Total Debt
$6.6B▼
$7.1B▲
$5.5B▲
$4.7B•
N/A
Working Capital
$100M▼
$223M▼
$557M▲
$347M•
N/A
Years to Pay Debt
6.64
8.14
6.44
4.98
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.4B▲
$909M▲
$864M▼
$1.3B•
N/A
Owner Earnings
$2.1B
$1.8B
$1.7B
$1.8B
N/A
CapEx % of Net Income
53.1%
48.8%
47.8%
42.7%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
2,165,000
1,894,000
1,732,000
1,820,000
Net Income From Continuing Operation Net Minority Interest
992,000
871,000
854,000
946,000
Reconciled Depreciation
570,000
493,000
439,000
437,000
Reconciled Cost Of Revenue
6,954,000
6,262,000
5,868,000
6,133,000
EBITDA
2,165,000
1,894,000
1,732,000
1,820,000
EBIT
1,595,000
1,401,000
1,293,000
1,383,000
Net Interest Income
-264,000
-201,000
-152,000
-138,000
Interest Expense
277,000
226,000
163,000
148,000
Interest Income
13,000
25,000
11,000
10,000
Normalized Income
992,000
871,000
854,000
946,000
Net Income From Continuing And Discontinued Operation
992,000
871,000
854,000
946,000
Total Expenses
9,479,000
8,526,000
7,990,000
8,455,000
Total Operating Income As Reported
1,556,000
1,346,000
1,262,000
1,428,000
Diluted Average Shares
113,000
113,000
113,000
118,000
Basic Average Shares
111,000
111,000
112,000
116,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
988,000
866,000
850,000
942,000
Net Income Common Stockholders
988,000
866,000
850,000
942,000
Otherunder Preferred Stock Dividend
4,000
5,000
4,000
4,000
Net Income
992,000
871,000
854,000
946,000
Minority Interests
-54,000
-50,000
-54,000
-69,000
Net Income Including Noncontrolling Interests
1,046,000
921,000
908,000
1,015,000
Net Income Continuous Operations
1,046,000
921,000
908,000
1,015,000
Earnings From Equity Interest Net Of Tax
42,000
19,000
26,000
44,000
Tax Provision
314,000
273,000
248,000
264,000
Pretax Income
1,318,000
1,175,000
1,130,000
1,235,000
Other Income Expense
26,000
30,000
20,000
-55,000
Other Non Operating Income Expenses
26,000
30,000
20,000
-55,000
Net Non Operating Interest Income Expense
-264,000
-201,000
-152,000
-138,000
Interest Expense Non Operating
277,000
226,000
163,000
148,000
Interest Income Non Operating
13,000
25,000
11,000
10,000
Operating Income
1,556,000
1,346,000
1,262,000
1,428,000
Operating Expense
2,109,000
1,898,000
1,791,000
2,005,000
Other Operating Expenses
-12,000
1,000
41,000
11,000
Depreciation Amortization Depletion Income Statement
154,000
127,000
108,000
120,000
Depreciation And Amortization In Income Statement
154,000
127,000
108,000
120,000
Amortization
154,000
127,000
108,000
120,000
Amortization Of Intangibles Income Statement
154,000
127,000
108,000
120,000
Selling General And Administration
1,967,000
1,770,000
1,642,000
1,874,000
Gross Profit
3,665,000
3,244,000
3,053,000
3,433,000
Cost Of Revenue
7,370,000
6,628,000
6,199,000
6,450,000
Total Revenue
11,035,000
9,872,000
9,252,000
9,883,000
Operating Revenue
11,035,000
9,872,000
9,252,000
9,883,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
52,000
51,000
51,000
51,000
Ordinary Shares Number
110,242
110,615
111,435
111,000
Share Issued
162,242
161,615
162,435
162,000
Net Debt
5,454,000
5,830,000
4,156,000
3,757,000
Total Debt
6,585,000
7,087,000
5,498,000
4,714,000
Tangible Book Value
-3,411,000
-3,841,000
-2,592,000
-2,419,000
Invested Capital
13,044,000
13,157,000
11,149,000
9,965,000
Working Capital
100,000
223,000
557,000
347,000
Net Tangible Assets
-3,411,000
-3,841,000
-2,592,000
-2,419,000
Capital Lease Obligations
711,000
708,000
656,000
642,000
Common Stock Equity
7,170,000
6,778,000
6,307,000
5,893,000
Total Capitalization
12,337,000
12,393,000
10,717,000
9,871,000
Total Equity Gross Minority Interest
7,286,000
6,896,000
6,418,000
6,007,000
Minority Interest
116,000
118,000
111,000
114,000
Stockholders Equity
7,170,000
6,778,000
6,307,000
5,893,000
Gains Losses Not Affecting Retained Earnings
-27,000
-88,000
-14,000
-21,000
Other Equity Adjustments
-27,000
-88,000
-14,000
-21,000
Treasury Stock
5,180,000
4,857,000
4,826,000
4,673,000
Retained Earnings
9,994,000
9,360,000
8,825,000
8,290,000
Additional Paid In Capital
2,381,000
2,361,000
2,320,000
2,295,000
Capital Stock
2,000
2,000
2,000
2,000
Common Stock
2,000
2,000
2,000
2,000
Total Liabilities Net Minority Interest
8,939,000
9,257,000
7,604,000
6,830,000
Total Non Current Liabilities Net Minority Interest
6,661,000
7,088,000
5,789,000
5,279,000
Other Non Current Liabilities
957,000
938,000
876,000
812,000
Preferred Securities Outside Stock Equity
79,000
Long Term Debt And Capital Lease Obligation
5,704,000
6,150,000
4,913,000
4,467,000
Long Term Capital Lease Obligation
537,000
535,000
503,000
489,000
Long Term Debt
5,167,000
5,615,000
4,410,000
3,978,000
Current Liabilities
2,278,000
2,169,000
1,815,000
1,551,000
Current Debt And Capital Lease Obligation
881,000
937,000
585,000
247,000
Current Capital Lease Obligation
174,000
173,000
153,000
153,000
Current Debt
707,000
764,000
432,000
94,000
Other Current Borrowings
504,000
602,000
303,000
2,000
Line Of Credit
203,000
162,000
129,000
92,000
Payables And Accrued Expenses
1,397,000
1,232,000
1,230,000
1,304,000
Current Accrued Expenses
932,000
856,000
768,000
881,000
Interest Payable
25,000
31,000
64,000
26,000
Payables
465,000
376,000
462,000
423,000
Other Payable
51,000
5,000
5,000
23,000
Dividends Payable
89,000
84,000
79,000
74,000
Total Tax Payable
18,000
0
0
2,000
Income Tax Payable
18,000
0
0
2,000
Accounts Payable
307,000
287,000
378,000
324,000
Total Assets
16,225,000
16,153,000
14,022,000
12,837,000
Other Non Current Assets
270,000
255,000
198,000
144,000
Investments And Advances
136,000
123,000
135,000
132,000
Long Term Equity Investment
136,000
123,000
135,000
132,000
Goodwill And Other Intangible Assets
10,581,000
10,619,000
8,899,000
8,312,000
Other Intangible Assets
1,636,000
1,763,000
1,166,000
1,092,000
Goodwill
8,945,000
8,856,000
7,733,000
7,220,000
Net PPE
2,860,000
2,764,000
2,418,000
2,351,000
Accumulated Depreciation
-3,973,000
-3,658,000
-3,416,000
-3,337,000
Gross PPE
6,833,000
6,422,000
5,834,000
5,688,000
Leases
894,000
881,000
827,000
760,000
Construction In Progress
252,000
235,000
248,000
277,000
Other Properties
657,000
651,000
602,000
585,000
Machinery Furniture Equipment
4,317,000
3,964,000
3,604,000
3,503,000
Buildings And Improvements
629,000
610,000
513,000
520,000
Land And Improvements
84,000
81,000
40,000
43,000
Current Assets
2,378,000
2,392,000
2,372,000
1,898,000
Other Current Assets
361,000
351,000
286,000
196,000
Prepaid Assets
223,000
Inventory
189,000
188,000
190,000
192,000
Receivables
1,408,000
1,304,000
1,210,000
1,195,000
Accounts Receivable
1,408,000
1,304,000
1,210,000
1,195,000
Allowance For Doubtful Accounts Receivable
-25,000
-29,000
-27,000
-30,000
Gross Accounts Receivable
1,433,000
1,333,000
1,237,000
1,225,000
Cash Cash Equivalents And Short Term Investments
420,000
549,000
686,000
315,000
Cash And Cash Equivalents
420,000
549,000
686,000
315,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,359,000
909,000
864,000
1,314,000
Repurchase Of Capital Stock
-450,000
-151,000
-275,000
-1,408,000
Repayment Of Debt
-1,012,000
-303,000
-1,844,000
-2,000
Issuance Of Debt
410,000
1,846,000
2,592,000
0
Capital Expenditure
-527,000
-425,000
-408,000
-404,000
Interest Paid Supplemental Data
280,000
262,000
134,000
156,000
Income Tax Paid Supplemental Data
169,000
256,000
317,000
283,000
End Cash Position
420,000
549,000
686,000
315,000
Beginning Cash Position
549,000
686,000
315,000
872,000
Effect Of Exchange Rate Changes
4,000
-7,000
0
0
Changes In Cash
-133,000
-130,000
371,000
-557,000
Financing Cash Flow
-1,388,000
1,084,000
160,000
-1,732,000
Cash Flow From Continuing Financing Activities
-1,388,000
1,084,000
160,000
-1,732,000
Net Other Financing Charges
-62,000
-50,000
-71,000
-140,000
Proceeds From Stock Option Exercised
79,000
73,000
72,000
123,000
Cash Dividends Paid
-353,000
-331,000
-314,000
-305,000
Common Stock Dividend Paid
-353,000
-331,000
-314,000
-305,000
Net Common Stock Issuance
-450,000
-151,000
-275,000
-1,408,000
Common Stock Payments
-450,000
-151,000
-275,000
-1,408,000
Net Issuance Payments Of Debt
-602,000
1,543,000
748,000
-2,000
Net Long Term Debt Issuance
-602,000
1,543,000
748,000
-2,000
Long Term Debt Payments
-1,012,000
-303,000
-1,844,000
-2,000
Long Term Debt Issuance
410,000
1,846,000
2,592,000
0
Investing Cash Flow
-631,000
-2,548,000
-1,061,000
-543,000
Cash Flow From Continuing Investing Activities
-631,000
-2,548,000
-1,061,000
-543,000
Net Other Investing Changes
-3,000
41,000
-42,000
5,000
Net Investment Purchase And Sale
-42,000
5,000
0
Sale Of Investment
5,000
0
Purchase Of Investment
-3,000
Net Business Purchase And Sale
-101,000
-2,164,000
-611,000
-144,000
Sale Of Business
0
0
755,000
Purchase Of Business
-101,000
-2,164,000
-611,000
-144,000
Net PPE Purchase And Sale
3,000
Sale Of PPE
3,000
Capital Expenditure Reported
-527,000
-425,000
-408,000
-404,000
Operating Cash Flow
1,886,000
1,334,000
1,272,000
1,718,000
Cash Flow From Continuing Operating Activities
1,886,000
1,334,000
1,272,000
1,718,000
Change In Working Capital
50,000
-201,000
-145,000
119,000
Change In Other Working Capital
3,000
-79,000
-73,000
53,000
Change In Payables And Accrued Expense
153,000
-51,000
-57,000
-180,000
Change In Payable
153,000
-51,000
-57,000
-180,000
Change In Account Payable
129,000
-67,000
-55,000
-149,000
Change In Tax Payable
24,000
16,000
-2,000
-31,000
Change In Income Tax Payable
24,000
16,000
-2,000
-31,000
Change In Receivables
-106,000
-71,000
-15,000
246,000
Changes In Account Receivables
-106,000
-71,000
-15,000
246,000
Other Non Cash Items
24,000
15,000
41,000
66,000
Stock Based Compensation
88,000
88,000
77,000
77,000
Provisionand Write Offof Assets
3,000
5,000
1,000
3,000
Deferred Tax
105,000
13,000
-49,000
1,000
Deferred Income Tax
105,000
13,000
-49,000
1,000
Depreciation Amortization Depletion
570,000
493,000
439,000
437,000
Depreciation And Amortization
570,000
493,000
439,000
437,000
Amortization Cash Flow
154,000
127,000
108,000
120,000
Amortization Of Intangibles
154,000
127,000
108,000
120,000
Depreciation
416,000
366,000
331,000
317,000
Operating Gains Losses
-314,000
Gain Loss On Sale Of PPE
9,000
Gain Loss On Sale Of Business
0
0
-314,000
Net Income From Continuing Operations
1,046,000
921,000
908,000
1,015,000
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $7.3B
Warren's Owner Earnings
$2.1B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$11.0B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.04x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $7.97 to $8.75 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+9.8% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $11.0Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.04xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $7.97 to $8.75 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what DGX is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
8.8%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
53.1%
48.8%
47.8%
42.7%
N/A
Repurchase of Capital Stock
-$450M
-$151M
-$275M
-$1.4B
N/A
Free Cash Flow
$1.4B▲
$909M▲
$864M▼
$1.3B•
N/A•
Warren's Owner Earnings
$2.1B
$1.8B
$1.7B
$1.8B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare DGX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
DGX (DGX) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 33.2%. Operating margin: 14.1%. Net margin: 9.0%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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