DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
114.51 USD
+0.9 (+0.79%)
114.51 USD
0 (0%)
Taking everything into account, DVA scores 5 out of 10 in our fundamental rating. DVA was compared to 101 industry peers in the Health Care Providers & Services industry. While DVA has a great profitability rating, there are quite some concerns on its financial health. DVA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
DVA had positive earnings in the past year.
DVA had a positive operating cash flow in the past year.
Each year in the past 5 years DVA has been profitable.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVA has a Return On Assets of 4.40%. This is in the better half of the industry: DVA outperforms 71.29% of its industry peers.
With an excellent Return On Invested Capital value of 10.88%, DVA belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.58%.
The 3 year average ROIC (9.26%) for DVA is below the current ROIC(10.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | N/A | ||
| ROIC | 10.88% |
ROA(3y)4.27%
ROA(5y)4.62%
ROE(3y)305.73%
ROE(5y)220.5%
ROIC(3y)9.26%
ROIC(5y)9.4%
1.3 Margins
The Profit Margin of DVA (5.80%) is better than 80.20% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 14.57%, DVA belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
Looking at the Gross Margin, with a value of 31.98%, DVA is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.57% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.98% |
OM growth 3Y0.04%
OM growth 5Y-0.21%
PM growth 3Y-4.61%
PM growth 5Y0.51%
GM growth 3Y1.6%
GM growth 5Y1.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DVA is creating some value.
The number of shares outstanding for DVA has been reduced compared to 1 year ago.
DVA has less shares outstanding than it did 5 years ago.
DVA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that DVA is in the distress zone and has some risk of bankruptcy.
DVA has a Altman-Z score of 1.63. This is in the lower half of the industry: DVA underperforms 62.38% of its industry peers.
DVA has a debt to FCF ratio of 7.93. This is a slightly negative value and a sign of low solvency as DVA would need 7.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.93, DVA is in line with its industry, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.29
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.36 indicates that DVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, DVA perfoms like the industry average, outperforming 50.49% of the companies in the same industry.
DVA has a Quick Ratio of 1.32. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.32, DVA perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
DVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.94%.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.14% in the past year.
DVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)3.94%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-18.4%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
3.2 Future
DVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.39% yearly.
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y12.69%
EPS Next 2Y15.96%
EPS Next 3Y16.78%
EPS Next 5Y14.39%
Revenue Next Year5.89%
Revenue Next 2Y4.42%
Revenue Next 3Y4.2%
Revenue Next 5Y4.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.41, DVA is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 84.16% of the companies listed in the same industry.
DVA is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of DVA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 93.07% of the companies listed in the same industry.
DVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaper than 86.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaper than 94.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
DVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DVA may justify a higher PE ratio.
A more expensive valuation may be justified as DVA's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)0.98
PEG (5Y)1.08
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
114.51
+0.9 (+0.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.39%
Inst Owner Change-4.16%
Ins Owners4.68%
Ins Owner Change-0.22%
Market Cap8.08B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target141.36 (23.45%)
Short Float %20.5%
Short Ratio7.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.57%
Min EPS beat(2)-37.31%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)-6.79%
Min EPS beat(4)-37.31%
Max EPS beat(4)4.29%
EPS beat(8)5
Avg EPS beat(8)-2.85%
EPS beat(12)8
Avg EPS beat(12)-0.85%
EPS beat(16)10
Avg EPS beat(16)-2.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.01%
Revenue beat(8)3
Avg Revenue beat(8)0.18%
Revenue beat(12)6
Avg Revenue beat(12)0.26%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)0%
PT rev (3m)-9.37%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.61 | ||
| P/FCF | 6.26 | ||
| P/OCF | 4.27 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)9.23
EY8.06%
EPS(NY)12.77
Fwd EY11.16%
FCF(TTM)18.3
FCFY15.99%
OCF(TTM)26.82
OCFY23.42%
SpS188.64
BVpS-8.1
TBVpS-118.07
PEG (NY)0.98
PEG (5Y)1.08
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | N/A | ||
| ROCE | 13.34% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 26.19% | ||
| OM | 14.57% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.98% | ||
| FCFM | 9.7% |
ROA(3y)4.27%
ROA(5y)4.62%
ROE(3y)305.73%
ROE(5y)220.5%
ROIC(3y)9.26%
ROIC(5y)9.4%
ROICexc(3y)9.63%
ROICexc(5y)9.74%
ROICexgc(3y)20.96%
ROICexgc(5y)20.57%
ROCE(3y)11.35%
ROCE(5y)11.54%
ROICexgc growth 3Y9.54%
ROICexgc growth 5Y5.46%
ROICexc growth 3Y5.31%
ROICexc growth 5Y2.72%
OM growth 3Y0.04%
OM growth 5Y-0.21%
PM growth 3Y-4.61%
PM growth 5Y0.51%
GM growth 3Y1.6%
GM growth 5Y1.53%
F-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 85.53% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 167.42% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.63 |
F-Score5
WACC8.43%
ROIC/WACC1.29
Cap/Depr(3y)78.43%
Cap/Depr(5y)87.31%
Cap/Sales(3y)4.74%
Cap/Sales(5y)5.11%
Profit Quality(3y)181.3%
Profit Quality(5y)168.85%
High Growth Momentum
Growth
EPS 1Y (TTM)3.94%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-18.4%
EPS Next Y12.69%
EPS Next 2Y15.96%
EPS Next 3Y16.78%
EPS Next 5Y14.39%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
Revenue Next Year5.89%
Revenue Next 2Y4.42%
Revenue Next 3Y4.2%
Revenue Next 5Y4.81%
EBIT growth 1Y2.94%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year42.6%
EBIT Next 3Y15.11%
EBIT Next 5Y11.57%
FCF growth 1Y-1.7%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-1.26%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%
DAVITA INC / DVA FAQ
What is the ChartMill fundamental rating of DAVITA INC (DVA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DVA.
What is the valuation status of DAVITA INC (DVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to DAVITA INC (DVA). This can be considered as Undervalued.
Can you provide the profitability details for DAVITA INC?
DAVITA INC (DVA) has a profitability rating of 7 / 10.
How financially healthy is DAVITA INC?
The financial health rating of DAVITA INC (DVA) is 3 / 10.
What is the expected EPS growth for DAVITA INC (DVA) stock?
The Earnings per Share (EPS) of DAVITA INC (DVA) is expected to grow by 12.69% in the next year.