# Quest Diagnostics Inc. (DGX) — Stock CV

Quest Diagnostics Inc. 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.

> Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the US.

## Identity

- **Ticker**: DGX
- **Sector**: Healthcare
- **Industry**: Services-Medical Laboratories
- **Headquarters**: SECAUCUS, NJ
- **Employees**: 57 000
- **Website**: https://www.questdiagnostics.com
- **Market cap**: $25.5B
- **Last price**: $230.97
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $11.6B
- **Net income**: $1.06B
- **Free cash flow**: $1.35B
- **Net debt**: $4.75B
- **P/E**: 24.0
- **Revenue growth (YoY)**: 9.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 52 |
| Growth | 26 |
| Profitability | 49 |
| Health | 48 |
| Quality | 97 |
| Moat | 62 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +9.9% YoY
- [x] Profitable — $1.06B TTM
- [x] Profit growing — +3.1% YoY
- [x] Generates cash — $1.35B TTM
- [x] Debt under control — ~3.5y of cash flow to repay
- [x] Established company — $25.5B market cap
- [x] Not printing shares — -17.1% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 36/100
- [x] Pays a dividend — yield 1.42%
- [x] Valuation not extreme — P/E 24.0

## Experience (career milestones)

- **2025** — Quest acquired select assets of Fresenius Medical Care's Spectra laboratories
- **FY2021** — Revenue crossed $10B: $10.8B for the year
- **FY2021** — Best year on record: $2.00B net income
- **2020** — The company launched a COVID-19 testing service
- **2018** — Quest launched QuestDirect, a consumer-initiated testing service that allows patients to order…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $7.51B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2007** — Quest acquired diagnostic testing equipment company AmeriPath
- **Dec 31, 1996** — Quest Diagnostics became an independent company as a spin-off from Corning
- **1988** — The purchase of SmithKline Beecham also included the lab's medical sample transport airline originally founded in 1988
- **1982** — MetPath was acquired by what was then known as Corning Glass Works and was subsequently renamed Corning…

## Strengths

- Interest covered 6.4× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $10.8B | $2.00B | $1.83B |
| FY2022 | $9.88B | $946M | $1.31B |
| FY2023 | $9.25B | $854M | $864M |
| FY2024 | $9.87B | $871M | $909M |
| FY2025 | $11.0B | $992M | $1.36B |

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Source: https://stockcv.com/DGX — derived from company filings; may be delayed or incomplete. Information, not investment advice.