NYSE · Healthcare

Quest Diagnostics Incorporated

DGX · Diagnostics & Research

$192.11

▼ -0.56 (-0.29%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Quest Diagnostics Incorporated at $192.11.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 33.2%

Operating Margin 14.1%

Net Income Margin 9.0%

Fin. Health D

Years to Pay Off Debt 6.6 yrs

Working Capital vs Long-Term Debt -$5.1B

Working Capital $100M

Valuation F

Margin of Safety 0.0%

Price-to-Book 2.97x

Cash Flow C

Free Cash Flow $1.4B

CapEx % of Net Income 53.1%

Owner Earnings $2.1B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $21.3B

Enterprise Value $27.7B

P/E (TTM) 21.20

Dividend Yield 1.69%

Exchange NYSE

Key Margins

Gross Profit 33.2%

Operating Margin 14.1%

Net Margin 9.0%

Company Info

Sector Healthcare

Industry Diagnostics & Research

Employees 57000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Quest Diagnostics Incorporated at $192.11.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $192.11, the stock trades at a 70% premium to its Graham Number of $112.92. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Quest Diagnostics Incorporated

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides services under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; healthcare IT healthcare providers and payers; testing and medical director services at hospital laboratories; test offerings in cardiometabolic and endocrine; cancer; clinical drug monitoring and toxicology; infectious disease, including autoimmune; neurology diagnostics, including Alzheimer's disease; and women's health, such as prenatal genetic; workplace drug testing, testing urine, hair, and oral fluid specimens services; and employer population health services, including biometric screenings, flu shots, and related preventative services. Further, it provides population health solutions; extended care services; develops in vitro diagnostic tests; laboratory diagnostic information and digital health connectivity systems; underwriting support services, including data gathering, paramedical examinations, and clinical laboratory testing and analytics; and national specimen collection and health data solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

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
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

These metrics estimate what Quest Diagnostics Incorporated is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$112.92

Margin of Safety

Market Cap ÷ Company Value

1.69

P/B Ratio

2.97

Warren's Owner Earnings

$2.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$11.0B

vs > $1.5B revenue

❌ Strong Financial Condition

1.04x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.69%

vs Uninterrupted dividends

❌ Earnings Growth

+9.8% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

21.2x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

2.97x P/B (P/E×P/B: 62.9)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-59.27

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$156.18

Per share, no-growth floor. Compare to current price.

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 Diagnostics & Research. 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

Capital Allocation & Alignment

Insider Ownership

0.42%

Low — management has little skin in the game

Return on Equity (ROE)

13.8%

Adequate — returns are moderate

Return on Assets (ROA)

6.1%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$450M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-7.1% YoY

Debt is declining — management is deleveraging

Leadership Team

James Davis

Chairman, CEO & President

Age 62

Pay: $3,735,745

0.377% of net income

Sam Samad

Executive VP & CFO

Age 55

Pay: $1,486,432

0.150% of net income

Catherine Doherty

Executive Vice President of Regional Businesses

Age 62

Pay: $1,308,396

0.132% of net income

Karthik Kuppusamy Ph.

Senior Vice President of Clinical Solutions

Age 55

Pay: $1,109,447

0.112% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	13.00%	14,392,082
Blackrock Inc.	8.55%	9,459,218
Price (T.Rowe) Associates Inc	5.69%	6,297,157
State Street Corporation	4.86%	5,382,547
JPMORGAN CHASE & CO	3.75%	4,145,896
Boston Partners	3.54%	3,913,326
Geode Capital Management, LLC	2.74%	3,028,207
Morgan Stanley	2.43%	2,693,568

Risk Analysis

Beta (Market Risk)

0.59

Low volatility — more stable than the market

Short Interest

3.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.83x

Conservative balance sheet — low financial risk

Current Ratio

1.18x

Adequate liquidity

52-Week Price Range

Low: $164.65 Current: $192.11 High: $213.50

Currently at 56% of 52-week range

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