Is the business good?
How good a business is DGX?
Quest Diagnostics earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.1 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Diagnostics & Research median 7.1% · 12 months to Q1 2026
- Cash conversion
- 1.29×
Cash conversion · 1.18× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.88%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 22% |
| FY2022 | 14% |
| FY2023 | 14% |
| FY2024 | 14% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q1 2026
- 33%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 9.1%
- Free cash flow margin
- 12%
- Revenue, trailing twelve months
- $11.3B
- Free cash flow, trailing twelve months
- $1.33B
- Net income, trailing twelve months
- $1.02B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Diagnostics & Research
Ranks #24 of 29 by Smart Score