Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Quest Diagnostics Inc

DGX · NYSE · Healthcare

Fundamental quality

REASONABLE

57

out of 100

Quest Diagnostics Inc earns a fundamental-quality score of 57 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt 2.27× EBITDA). Its weakest area is its growth (revenue +3.8%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Quest Diagnostics is the other half of America's clinical-lab duopoly: routine tests, advanced diagnostics and employer health programs. Its business is turning every blood tube into data, millions of times a day.

What will shape its future

  • Aging and preventive medicine, pushing test volumes up year after year.
  • Advanced testing (genetics, Alzheimer's, oncology), where the growth and margin live.
  • Payer reimbursement pressure, the sector's permanent headwind.

Breakdown by area

I.Growth
31

EPS growth: -1.9% · Revenue growth: 3.8%

II.Profitability
66

Net margin: 9.2% · ROE: 14.1% · ROIC: 10%

III.Financial health
72

Net debt/EBITDA: 2.27x · FCF: 11.7%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +1 for dividend strength: 7 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 46%
ROEbeats 49%
Growthbeats 18%
Cash generationbeats 39%
Less debtbeats 45%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Quest Diagnostics Inc strengths

  • Solid net margin (9.2%): the business is clearly profitable.
  • Positive free cash flow year after year, a self-funding business.

Quest Diagnostics Inc risks and weaknesses

  • Shrinking margins: net margin has fallen from 15% to 9% in recent years.
  • Declining earnings per share (-1.9% annualized).
  • Its net debt has grown over the period.

Quest Diagnostics Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20209,4371,4311,5872,857
202110,7881,9951,8303,140
20229,8839461,3143,665
20239,2528548644,027
20249,8728719095,668
202511,0359921,3595,251

Between 2020 and 2025, revenue went from $9,437M to $11,035M (+17%) and net income went from $1,431M to $992M (-31%). Meanwhile, its margins have narrowed (from 15% to 9%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+9.7%
  • Net income+13.9%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score5657

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.8

per share, yearly

35.6% of earnings

Payout

7 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Quest Diagnostics Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Quest Diagnostics Inc a good company to invest in?

In terms of business quality, Quest Diagnostics Inc scores 57 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Quest Diagnostics Inc a profitable company?

Quest Diagnostics Inc is profitable, with a net margin of 9.2%, though a thin one.

Does Quest Diagnostics Inc have a lot of debt?

A moderate level: its net debt is 2.27 times its EBITDA.

Is Quest Diagnostics Inc growing?

Its revenue has grown 3.8% annualized in recent years.

Does Quest Diagnostics Inc generate cash?

Yes. It converts about 11.7% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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