Financial Analysis Quest Diagnostics

Introduction

Quest Diagnostics is a United States company which is integrated on New York Stock Exchange and offers services of clinical laboratory and its operations has been spread all over the United States and operations in Mexico, Brazil, United Kingdom, Puerto and Rico and a laboratory in India. Quest Diagnostics also has international mutual contract with a variety of clinics and hospitals.

Financial Performance of the Quest Diagnostics:

However, looking at other companies in this industry, an investor may notice that most competitor of Quest Diagnostics have similar business strategies. Quest is the different from its competitors which is however, its strong point. According to Capital IQ, Quest has seen a shift of revenue year quarterly rate of -1.70%. Typically, it is difficult to approve a company with a negative rate of sales, especially when competitors DaVita laboratory and positive figures, but it is important to return to where the market introduction of the CAP is mentioned. As a $ 9.41 billion dollar publicly traded company with over 6.24 billion dollars in revenue over the last twelve months, nor DaVita (5.00 billion dollars) or laboratory (3.71 billion) can match this number. Consequently, the percentages of high revenue growth year over the year will be much more difficult for the Quest to win over its competitors. However, what does stand out Quest is high operating margins over the past year. 17.15%, according to Reuters, this number is higher than the industry average at 9.94% to 15.43% average DaVita and Fresenius to the figure of 15.86%. However, the question that may be raised regarding the sale is a flight of twelve months operating margins, which is below the five year average. In fact, twelve months gross margins back, Edict, and net profit margins are slightly below the five year average. In many cases, investors may look at this as a sign of a company to reach diseconomies of scale and on the eve of a sell-off share price wise. However, there is still evidence against this claim (Jailies, Pp. 1-5).

Quest sales projections are based on five years that are 30% from their previous sales which are close to the industry average and chants in the laboratory that is 20% and DaVita 22%. Surprisingly, projection of sales of Quest for five years nearly 12%, while it competitors is 10%. There is always some potential for Quest in the future. It is true to call Quest stock as a growth stock, but a bit illogical because of strong price statistics and current division potential future, investors should be aware that this equity is extremely undervalued instead rather than overvalue. The management team, led by CEO Surya Mohapatra has also stated that QI financial strategy is overwhelming with the rest of the industry. Quest ROI (12.97), ROA (9.96), and ROE (19.63) are above the industry averages which does not require to state the respective figures competitor and Fresenius (Jailies, Pp. 1-5)

SWOT Analysis:

Quest Diagnostics company who offers medical diagnostics to patients and physicians in order ...