DAVITA INC (DVA)
US23918K1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to DVA. DVA was compared to 117 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year DVA was profitable.
In the past year DVA had a positive cash flow from operations.
Each year in the past 5 years DVA has been profitable.
Each year in the past 5 years DVA had a positive operating cash flow.
1.2 Ratios
DVA has a Return On Assets of 4.09%. This is in the better half of the industry: DVA outperforms 76.72% of its industry peers.
DVA has a Return On Equity of 65.48%. This is amongst the best in the industry. DVA outperforms 98.28% of its industry peers.
With an excellent Return On Invested Capital value of 9.03%, DVA belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
DVA had an Average Return On Invested Capital over the past 3 years of 8.69%. This is in line with the industry average of 8.61%.
The last Return On Invested Capital (9.03%) for DVA is above the 3 year average (8.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 65.48% | ||
| ROIC | 9.03% |
ROA(3y)4.37%
ROA(5y)4.47%
ROE(3y)91.17%
ROE(5y)73.49%
ROIC(3y)8.69%
ROIC(5y)8.97%
1.3 Margins
Looking at the Profit Margin, with a value of 5.70%, DVA belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
In the last couple of years the Profit Margin of DVA has grown nicely.
The Operating Margin of DVA (13.19%) is better than 92.24% 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 31.47%. This is comparable to the rest of the industry: DVA outperforms 56.90% of its industry peers.
In the last couple of years the Gross Margin of DVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.19% | ||
| PM (TTM) | 5.7% | ||
| GM | 31.47% |
OM growth 3Y-3.29%
OM growth 5Y0.19%
PM growth 3Y-5.27%
PM growth 5Y32.51%
GM growth 3Y0.68%
GM growth 5Y2.26%
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.
Compared to 1 year ago, DVA has less shares outstanding
The number of shares outstanding for DVA has been reduced compared to 5 years ago.
Compared to 1 year ago, DVA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that DVA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, DVA is in line with its industry, outperforming 49.14% of the companies in the same industry.
The Debt to FCF ratio of DVA is 5.63, which is a neutral value as it means it would take DVA, 5.63 years of fcf income to pay off all of its debts.
DVA has a Debt to FCF ratio of 5.63. This is in the better half of the industry: DVA outperforms 73.28% of its industry peers.
A Debt/Equity ratio of 7.83 is on the high side and indicates that DVA has dependencies on debt financing.
The Debt to Equity ratio of DVA (7.83) is worse than 81.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.83 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.27
WACC7.09%
2.3 Liquidity
DVA has a Current Ratio of 1.19. 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 (1.19) which is comparable to the rest of the industry.
DVA has a Quick Ratio of 1.13. 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 Quick ratio of 1.13. This is comparable to the rest of the industry: DVA outperforms 43.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.44% over the past year.
Measured over the past years, DVA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.76% on average per year.
Looking at the last year, DVA shows a small growth in Revenue. The Revenue has grown by 4.57% in the last year.
The Revenue has been growing slightly by 1.26% on average over the past years.
EPS 1Y (TTM)31.44%
EPS 3Y0.68%
EPS 5Y15.76%
EPS growth Q2Q174.58%
Revenue 1Y (TTM)4.57%
Revenue growth 3Y1.67%
Revenue growth 5Y1.26%
Revenue growth Q2Q7.85%
3.2 Future
The Earnings Per Share is expected to grow by 34.57% on average over the next years. This is a very strong growth
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.26% yearly.
EPS Next Y22.02%
EPS Next 2Y17.28%
EPS Next 3Y15.8%
EPS Next 5Y34.57%
Revenue Next Year4.92%
Revenue Next 2Y4.39%
Revenue Next 3Y4.14%
Revenue Next 5Y3.26%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.22, DVA is valued on the expensive side.
DVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DVA is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.06. DVA is valued slightly cheaper when compared to this.
DVA is valuated correctly with a Price/Forward Earnings ratio of 15.75.
Based on the Price/Forward Earnings ratio, DVA is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, DVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 85.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent 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 15.80% in the coming years.
PEG (NY)0.87
PEG (5Y)1.22
EPS Next 2Y17.28%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAVITA INC
NYSE:DVA (5/2/2024, 7:04:00 PM)
After market: 149 +6.76 (+4.75%)142.24
+2.49 (+1.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 15.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 65.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.19% | ||
| PM (TTM) | 5.7% | ||
| GM | 31.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.44%
EPS 3Y0.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.57%
Revenue growth 3Y1.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y