QUEST DIAGNOSTICS INC (DGX) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 8.9%. FCF margin 11.8%. D/E 0.8x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	8.9%	Near cost of capital
FCF Margin	11.8%	Healthy cash flow
Debt/Equity	0.8x	Moderate leverage

ROIC 8.9% — Top 50% of sector peers. FCF margin 11.8% — Top 5%.

Explore QUEST DIAGNOSTICS INC: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for DGX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: QUEST DIAGNOSTICS INC earns 8.9% ROIC, Top 50% in Healthcare

ROIC TTM 8.9%, sector median -2.8%, Top 50%. DuPont: NOPAT margin 10.9% × asset turnover 0.7x. Gross margin 33.2%. Operating margin 14.3%. Source: 10-Q filed 2025-10-21.

Metric	DGX	Rating	Context
Return on Invested Capital (ROIC)	8.9%	Adequate	Above sector median of -2.8%
Return on Equity (ROE)	14.2%	Adequate	Moderate equity returns
Gross Margin	33.2%	Good	Competitive pricing environment
Operating Margin	14.3%	Good	Moderate operational efficiency

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Cash Flow: QUEST DIAGNOSTICS INC generates $1.3B FCF at 11.8% margin, positive NaN/8 quarters

FCF TTM $1.3B. FCF margin 11.8%, Top 5%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	DGX	Rating	Context
Free Cash Flow Margin	11.8%	Good	Healthy cash generation
Free Cash Flow (TTM)	$1.3B	Good	Positive cash generation
OCF/Net Income	1.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: QUEST DIAGNOSTICS INC at 0.8x leverage

Debt/Equity 0.8x. Total debt $5.7B, cash & investments $393.0M. Source: 10-Q filed 2025-10-21.

Metric	DGX	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-5.3B	Warning	Net debt position

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Valuation: QUEST DIAGNOSTICS INC trades at 21.4x earnings

P/E 21.4x. EV/Sales 2.4x. FCF yield 6.1%. Dividend yield 1.7%. Source: 10-Q filed 2025-10-21.

Metric	DGX	Rating	Context
P/E Ratio	21.4x	Adequate	Premium valuation
EV/Sales	2.4x	Good	Attractive revenue multiple
FCF Yield	6.1%	Good	Attractive cash return
Dividend Yield	1.7%	Adequate	Growth focus over income

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Capital Allocation: QUEST DIAGNOSTICS INC returns 1.7% shareholder yield

Total shareholder yield 1.7% (div 1.7%). Capital returned $363.0M TTM. Source: 10-Q filed 2025-10-21.

Metric	DGX	Rating	Context
Total Shareholder Yield	1.7%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$363.0M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	8.9%	Top 50%	-
Free Cash Flow Margin	11.8%	Top 5%	-
Gross Margin	33.2%	Bottom 25%	0.5x below
Operating Margin	14.3%	Top 50%	6.3x above
Return on Equity (ROE)	14.2%	Top 25%	-
P/E Ratio	21.4x	N/A	-

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Financial Scorecard

Metric	DGX	Rating	Sector Context
Return on Invested Capital (ROIC)	8.9%	Adequate	Top 50% of sector (median: -2.8%)
Free Cash Flow Margin	11.8%	Good	Top 5% of sector (median: 0.0%)
Gross Margin	33.2%	Good	Bottom 25% of sector (median: 63.7%)
Debt to Equity Ratio	76.8%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	21.4x	Adequate	Fair value
Free Cash Flow Yield	6.1%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is QUEST DIAGNOSTICS INC's Return on Invested Capital (ROIC)?

QUEST DIAGNOSTICS INC (DGX) has a trailing twelve-month Return on Invested Capital (ROIC) of 8.9%. Sector median -2.8%. Source: 10-Q filed 2025-10-21.

Q: What is QUEST DIAGNOSTICS INC's Free Cash Flow Margin?

QUEST DIAGNOSTICS INC (DGX) has a free cash flow margin of 11.8%, generating $1.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-21.

Q: What is QUEST DIAGNOSTICS INC's P/E ratio and how does it compare to peers?

QUEST DIAGNOSTICS INC (DGX) trades at a P/E ratio of 21.4x, which is above the sector median of N/A. EV/Sales 2.4x. FCF yield 6.1%. Source: 10-Q filed 2025-10-21.

Q: Does QUEST DIAGNOSTICS INC pay a dividend?

QUEST DIAGNOSTICS INC (DGX) currently pays a dividend yield of 1.7%. Total shareholder yield (dividend + buybacks) 1.7%. Source: 10-Q filed 2025-10-21.

Q: How much debt does QUEST DIAGNOSTICS INC have?

QUEST DIAGNOSTICS INC (DGX) has a debt-to-equity ratio of 0.8x with total debt of $5.7 billion. Net debt $5.3 billion. Source: 10-Q filed 2025-10-21.

Q: What is QUEST DIAGNOSTICS INC's revenue and earnings growth?

QUEST DIAGNOSTICS INC (DGX) grew revenue by 11.0% year-over-year. EPS +14.4% YoY. Source: 10-Q filed 2025-10-21.

Q: How does QUEST DIAGNOSTICS INC compare to competitors in Healthcare?

Compared to other companies in Healthcare, QUEST DIAGNOSTICS INC (DGX) shows: ROIC 8.9%, sector median -2.8% (Top 50%). FCF margin 11.8%, sector median 0.0% (Top 5%). Gross margin 33.2%, 30.5pp below sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with QUEST DIAGNOSTICS INC?

No quantitative warning flags fired for QUEST DIAGNOSTICS INC (DGX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-21.

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Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.