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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
DGX
Primary Facts
Diagnostics & Research
Name:
-
Sector:
417.00M
Industry:
125.13
CEO:
Mr. Stephen Rusckowski
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
0.622470252
-0.16449526
Quest Diagnostics Incorporated (XNYS:DGX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
QUEST DIAGNOSTICS INCORPORATED (XNYS:DGX)
One Month Price Target:
Six Month Price Target :
$125.84
Likely Price in One Year's Time:
Ticker:
$129.38
Likely Trading Range Today Under (Normal Volatility)
$125.6
Price Upper limit ($) :
$133.64
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P134
This week:
$120.21
This month :
$114.12
Other Primary facts
Market Cap:
116.61M
Market Cap Classification:
14.62B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-10.73%
$103.11
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$137.46
12.59%
$112.80
$147.97
Medium risk (<10%) entry points
Buy Call
Sell Call
$131.80
Buy Put:
Sell Put:
$102.29
$118.46
$134.04
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Diagnostics & Research
Sharpe Ratio:
DGX, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
2.52%
-0.265347512
Sharpe ratio is -26.53% lower than the industry
Average Returns/Yield of
Diagnostics & Research
Daily returns:
1
Weekly returns:
0.04%
Monthly returns:
0.22%
Yearly returns:
10.73%
Comparison of returns:
-0.615802615
Classification:
Average annual returns/yield (last 3 years) is -61.58% below industry average
Results of T-Test of Returns:
DGX is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.83
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -18.84% lower than the market/S&P 500 average
Weekly Volatility:
1.94%
Monthly Volatility:
4.33%
Yearly Volatility:
8.66%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
37.77%
-65.37%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -65.37% below long-term volatility
Weekly VaR:
-3.93%
Monthly VaR:
-8.80%
How Much Can the price of
Diagnostics & Research
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Medium (<50%)
Worst case (decline):
$106.30
This translates to price declining to:
-15%
This translates to price declining to:
-60.95%
Severe Crash Probability
-17.60%
What is Value at Risk (VaR)?
Risk Fundamentals
6.39%
DGX is a 24.19% riskier investment compared to the market/S&P 500 & is 6.39% riskier than Nasdaq (IXIC)
DGX is a 24.19% riskier investment compared to the market/S&P 500
Beta Examination of
Diagnostics & Research
1.012
Expected beta in 1 year's time:
0.643
Expected beta in 3 year's time:
0.667
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--1.01
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -14.34% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.655
0.000
Average Industry Beta:
Beta is 0.04% higher than peers
-0.143405732
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -13.84% below industry mean WACC
-49.17%
Alpha provided | Alpha Analysis
Alpha provided:
0.943
-0.961
0.410
Analysis of Cost of Capital of
Diagnostics & Research
Equity cost of capital:
Alpha is 41% compared to market & is healthy
-0.103
Unlevered (without debt) cost of capital:
Equity cost of capital is -10.32% below industry mean WACC
Before-tax cost of debt:
6.52%
After-tax cost of debt:
3.22%
Overall debt rating:
2.54%
Weighted average cost of capital (WACC):
3.22%
-13.84%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $34.26
Revenue growth rate per share of (3Y):
Price to sales ratio is -85.62% below the industry mean
-50.83%
EPS:
One Billion Seven Hundred Sixty-One Million Six Hundred Forty-Eight Thousand Six Hundred Fifty Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is -76.51% lower than the industry
29.13%
Free cash flow (FCF) per share:
Price to book ratio is -98.21% below the industry mean
-
-16.79795593
Debt per share
Debt repayment rate in last quarter: 0.02%
EBITDA per share
Each employee generates 150% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Diagnostics & Research
P/E Ratio:
Sustainable growth rate is -49.17% below industry average
P/E Ratio of Competitors/Peers:
10.41
-0.719970415
558.0181992
-0.775760002
$13.10
Share value as per dividend discount (DDM) model: $59.84
P/S (Price to Sales ratio):
$91.58
-0.856223394
P/B (Price to book value ratio):
Price to sales ratio is -85.62% below the industry mean
-
-0.765120037
Net income growth rate (3Y):
Annual revenue growth rate is -50.83% below industry average
-187.38%
Dividend Analysis
Net income growth rate is -187.38% lower than the industry average net income growth rate
Dividend payout rate: 3.93%
$0.66
Previous Dividend: $0.66
Previous adjusted dividend: $0.66
Previous Dividend: $2.52
Expected next dividend best case: $0.70
Expected next dividend worst case: $0.62
Average dividend payment (long-term): $0.59
Average dividend increase/decrease (growth rate) % per period: 2.54%
Expected next dividend payment date: 19/07/2022
Expected next dividend record date: 07/05/2022
Expected next dividend declaration date: 05/04/2022
Previous dividend payment date: 20/04/2022
Previous dividend record date: 04/06/2022
Dividend History:
Previous dividend declaration date: 02/03/2022
2022-01-18--$0.62
2021-07-06--$0.62
2022-04-05--$0.66
2021-10-04--$0.62
2021-04-06--$0.62
-1.207285792
In-depth Debt & Leverage Analysis
Debt to equity ratio:
61.96%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 24.8 years
Debt to assets ratio:
29.39%
Net debt to assets ratio:
70.68%
-31.00%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -31.00% below industry average
-1.71
Looking forward:
Debt growth rate:
1.5x
-103.03%
0.02%
Analysis of Key Statistics
Correlation of price movement with the market:
15.93109057
Statistical significance of correlation:
-0.28%
Average Correlation of the industry with the market:
0.52
6.61%
R Squared (percentage of price movement explained by movement of the market):
0.52
Correlation of price movement with Nasdaq (^IXIC):
0.27
Covariance of price movement with the market:
-0.005
Kurtosis
-0.006
7.139
Skewness of returns:
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
-0.063
Fundamental Analysis & Dupont Analysis of
Diagnostics & Research
Gross Profit Margin Ratio:
4.08B
Operating Profit Margin Ratio:
Net profit margin is -115.66% lower than the industry
-118.59%
Net Profit Margin Ratio:
4.08B
Effective Tax Rate:
0.96%
0.19053367
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -105.19% lower than the industry
40.40%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -118.59% lower than the industry
-105.19%
Financial Leverage:
Interest coverage ratio is -171.25% less than industry average
Current Ratio:
Return on equity (ROE) is 40.40% higher than the industry
-0.707048514
Cash Conversion Cycle (days):
$38.65
0.037356093
Current ratio is -70.70% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is -1679.80% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is 3.74% above industry average
-0.283207628
EBITDA generated per employee:
Each employee generates -28% less revenue than industry average revenue per employee
1.497371928
Profit generated per employee:
$25.71
194%
Free cash flow (FCF) generated per employee:
Each employee generates 194% more net income/profit than industry average revenue per employee
-5.79113446
Assets/Capital per employee
Each employee generates -579% less free cash flow than industry average revenue per employee
-5.79113446
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Diagnostics & Research
$324.40
Fresenius Medical Care AG & Co KGaA (XNYS:FMS)
Catalent, Inc. (XNYS:CTLT)
BIO-RAD LABORATORIES, INC. (XNYS:BIO)
THE COOPER COMPANIES, INC. (XNYS:COO)
WATERS CORPORATION (XNYS:WAT)
MOLINA HEALTHCARE, INC. (XNYS:MOH)
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (XNYS:CRL)
SMITH & NEPHEW PLC (XNYS:SNN)
Current Analyst Ratings
$15.01
Strong buy�4%
Buy�17%
Hold�58%
Sell�4%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
10.68B
6.60B
153%
-
-
1.75B
-
101.00M
8.45B
-
150.00M
413.00M
113%
554.00M
191.00M
91%
554.00M
Statement of Cash Flow
Date:
Period:
373.00M
Differed Income Tax :
106.00M
Stock Based Compensation :
- 43000.00K
Change in Working Capital :
18.00M
Accounts Receivables:
22.00M
Other Working Capital:
- 165000.00K
Other Non-Cash Items:
20.00M
Net Cash Provided by Operating Activities:
4.00M
Investments in PP&E:
480.00M
Net Acquisitions:
-
Purchases of Investments:
- 105000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
712.00M
-
712.00M
1.37B
197.00M
195.00M
2.48B
2.29B
7.20B
1.17B
155.00M
-
155.00M
10.97B
-
13.44B
-
156.00M
-
-
1.54B
1.70B
4.51B
742.00M
5.25B
-
6.95B
2.00M
7.93B
- 16000.0K
Value
1.85B
-
6.38B
13.33B
-
4.66B
- 1000.00K
-
- 63000.00K
- 169000.00K
- 1000.00K
-
- 373000.00K
- 74000.00K
- 23000.00K
- 471000.00K
-
- 160000.00K
712.00M
872.00M
480.00M
- 63000.00K
Our Proprietary Portfolio Rating
Our Rating:
-6.392070423
Price Forecast/Expected Price in Next 5 Years of
Diagnostics & Research
2023
2024
2025
2026
2027
249.3426221
$134.31
$266.30
$284.41
$303.75