DAVITA INC (DVA) Stock Fundamental Analysis
NYSE:DVA - New York Stock Exchange, Inc. - US23918K1088 - Common Stock - Currency: USD
DVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are some minor concerns on its financial health. DVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DVA was profitable.
DVA had a positive operating cash flow in the past year.
DVA had positive earnings in each of the past 5 years.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DVA (5.02%) is better than 79.41% of its industry peers.
DVA has a Return On Invested Capital of 11.16%. This is amongst the best in the industry. DVA outperforms 85.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.53%.
The 3 year average ROIC (9.26%) for DVA is below the current ROIC(11.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | N/A | ||
| ROIC | 11.16% |
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 (6.63%) is better than 83.33% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
The Operating Margin of DVA (15.01%) is better than 89.22% of its industry peers.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
DVA has a Gross Margin of 32.46%. This is comparable to the rest of the industry: DVA outperforms 59.80% of its industry peers.
In the last couple of years the Gross Margin of DVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.46% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DVA is still creating some value.
The number of shares outstanding for DVA has been reduced compared to 1 year ago.
Compared to 5 years ago, DVA has less shares outstanding
DVA has a worse debt/assets ratio than last year.
2.2 Solvency
DVA has an Altman-Z score of 1.71. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
DVA's Altman-Z score of 1.71 is in line compared to the rest of the industry. DVA outperforms 40.20% of its industry peers.
DVA has a debt to FCF ratio of 5.54. This is a neutral value as DVA would need 5.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.54, DVA is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.46
WACC7.64%
2.3 Liquidity
DVA has a Current Ratio of 1.25. 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 worse Current ratio (1.25) than 62.75% of its industry peers.
A Quick Ratio of 1.20 indicates that DVA should not have too much problems paying its short term obligations.
DVA has a Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.87% over the past year.
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 5.11% in the past 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)9.87%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-11.5%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.98%
3.2 Future
The Earnings Per Share is expected to grow by 12.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y15.8%
EPS Next 2Y16.19%
EPS Next 3Y15.67%
EPS Next 5Y12.83%
Revenue Next Year5.39%
Revenue Next 2Y4.52%
Revenue Next 3Y4.43%
Revenue Next 5Y5.25%
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 stable.
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
A Price/Earnings ratio of 15.31 indicates a correct valuation of DVA.
DVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DVA is cheaper than 77.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVA to the average of the S&P500 Index (26.60), we can say DVA is valued slightly cheaper.
DVA is valuated reasonably with a Price/Forward Earnings ratio of 11.03.
Based on the Price/Forward Earnings ratio, DVA is valued cheaper than 85.29% of the companies 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 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
84.31% of the companies in the same industry are more expensive than DVA, based on the Enterprise Value to EBITDA ratio.
DVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVA is cheaper than 92.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 7.65 |
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.
DVA has a very decent profitability rating, which may justify a higher PE ratio.
DVA's earnings are expected to grow with 15.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.33
EPS Next 2Y16.19%
EPS Next 3Y15.67%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:DVA (5/21/2025, 3:48:06 PM)
141.42
-4.35 (-2.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.51%
Inst Owner Change-3.49%
Ins Owners4.33%
Ins Owner Change1.18%
Market Cap10.87B
Analysts52.94
Price Target169.97 (20.19%)
Short Float %12.7%
Short Ratio5.52
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)2
Avg EPS beat(2)2.98%
Min EPS beat(2)1.67%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)-1.42%
Min EPS beat(4)-9.07%
Max EPS beat(4)4.29%
EPS beat(8)6
Avg EPS beat(8)6.33%
EPS beat(12)8
Avg EPS beat(12)-0.4%
EPS beat(16)11
Avg EPS beat(16)0.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.12%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)8
Avg Revenue beat(16)-0.11%
PT rev (1m)0.89%
PT rev (3m)4.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 11.03 | ||
| P/S | 0.84 | ||
| P/FCF | 6.18 | ||
| P/OCF | 4.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)9.24
EY6.53%
EPS(NY)12.83
Fwd EY9.07%
FCF(TTM)22.89
FCFY16.18%
OCF(TTM)30.4
OCFY21.5%
SpS168.73
BVpS-3.48
TBVpS-102.63
PEG (NY)0.97
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | N/A | ||
| ROCE | 13.69% | ||
| ROIC | 11.16% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 26.09% | ||
| OM | 15.01% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.46% | ||
| FCFM | 13.57% |
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%
ROICexcg growth 3Y9.54%
ROICexcg 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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 81% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.87% | ||
| Profit Quality | 204.65% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.71 |
F-Score7
WACC7.64%
ROIC/WACC1.46
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)9.87%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-11.5%
EPS Next Y15.8%
EPS Next 2Y16.19%
EPS Next 3Y15.67%
EPS Next 5Y12.83%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.98%
Revenue Next Year5.39%
Revenue Next 2Y4.52%
Revenue Next 3Y4.43%
Revenue Next 5Y5.25%
EBIT growth 1Y11.97%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.47%
EBIT Next 3Y16.3%
EBIT Next 5Y11.9%
FCF growth 1Y63.34%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y37.06%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%