DAVITA INC (DVA) Stock Fundamental Analysis
USA - NYSE:DVA - US23918K1088 - Common Stock
123.6 USD
+1.33 (+1.09%)
123.6 USD
0 (0%)
DVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are 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.
In the past year DVA had a positive cash flow from operations.
Each year in the past 5 years DVA has been profitable.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
DVA has a Return On Assets of 4.40%. This is in the better half of the industry: DVA outperforms 72.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.88%, DVA belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DVA is in line with the industry average of 9.45%.
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
DVA has a better Profit Margin (5.80%) than 79.00% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.57%, DVA belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
DVA's Operating Margin has been stable in the last couple of years.
The Gross Margin of DVA (31.98%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DVA has grown nicely.
| 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
DVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DVA has less shares outstanding than it did 1 year ago.
DVA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DVA is higher compared to a year ago.
2.2 Solvency
DVA has an Altman-Z score of 1.65. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.65, DVA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of DVA is 7.93, which is on the high side as it means it would take DVA, 7.93 years of fcf income to pay off 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 57.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.27
WACC8.54%
2.3 Liquidity
DVA has a Current Ratio of 1.36. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
DVA has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, DVA perfoms like the industry average, outperforming 47.00% 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%.
Measured over the past years, DVA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.47% on average per year.
Looking at the last year, DVA shows a small growth in Revenue. The Revenue has grown by 5.14% in the last year.
Measured over the past years, DVA shows a small growth in Revenue. The Revenue has been growing by 2.39% on average per year.
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.
Based on estimates for the next years, DVA will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y16.39%
EPS Next 2Y16.3%
EPS Next 3Y15.31%
EPS Next 5Y14.39%
Revenue Next Year5.62%
Revenue Next 2Y4.47%
Revenue Next 3Y4.13%
Revenue Next 5Y4.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
DVA is valuated correctly with a Price/Earnings ratio of 13.39.
Based on the Price/Earnings ratio, DVA is valued cheaply inside the industry as 83.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. DVA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.62, which indicates a very decent valuation of DVA.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 92.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. DVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 9.62 |
4.2 Price Multiples
DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 85.00% of the companies in the same industry.
DVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVA is cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 6.89 |
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 15.31% in the coming years.
PEG (NY)0.82
PEG (5Y)1.17
EPS Next 2Y16.3%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
123.6
+1.33 (+1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.88%
Inst Owner Change-2.1%
Ins Owners4.64%
Ins Owner Change-0.1%
Market Cap8.84B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target153.54 (24.22%)
Short Float %18.22%
Short Ratio9.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-1.56%
PT rev (3m)-6.24%
EPS NQ rev (1m)14.3%
EPS NQ rev (3m)12.11%
EPS NY rev (1m)0.75%
EPS NY rev (3m)2%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 9.62 | ||
| P/S | 0.66 | ||
| P/FCF | 6.84 | ||
| P/OCF | 4.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.89 |
EPS(TTM)9.23
EY7.47%
EPS(NY)12.85
Fwd EY10.4%
FCF(TTM)18.07
FCFY14.62%
OCF(TTM)26.48
OCFY21.42%
SpS186.27
BVpS-8
TBVpS-116.58
PEG (NY)0.82
PEG (5Y)1.17
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 | 1.65 |
F-Score5
WACC8.54%
ROIC/WACC1.27
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 Y16.39%
EPS Next 2Y16.3%
EPS Next 3Y15.31%
EPS Next 5Y14.39%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
Revenue Next Year5.62%
Revenue Next 2Y4.47%
Revenue Next 3Y4.13%
Revenue Next 5Y4.81%
EBIT growth 1Y2.94%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.01%
EBIT Next 3Y15.72%
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.
Can you provide the valuation status for DAVITA INC?
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.
What are the PE and PB ratios of DAVITA INC (DVA) stock?
The Price/Earnings (PE) ratio for DAVITA INC (DVA) is 13.39 and the Price/Book (PB) ratio is -15.45.