DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
107.925 USD
-1.25 (-1.14%)
Taking everything into account, DVA scores 5 out of 10 in our fundamental rating. DVA was compared to 102 industry peers in the Health Care Providers & Services industry. While DVA belongs to the best of the industry regarding profitability, 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.
- DVA had a positive operating cash flow in the past year.
- 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
- The Return On Assets of DVA (4.40%) is better than 72.55% of its industry peers.
- DVA's Return On Invested Capital of 10.88% is amongst the best of the industry. DVA outperforms 82.35% of its industry peers.
- DVA had an Average Return On Invested Capital over the past 3 years of 9.26%. This is in line with the industry average of 9.21%.
- The last Return On Invested Capital (10.88%) for DVA is above the 3 year average (9.26%), which is a sign of increasing profitability.
| 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 81.37% of its industry peers.
- DVA's Profit Margin has been stable in the last couple of years.
- DVA has a Operating Margin of 14.57%. This is amongst the best in the industry. DVA outperforms 87.25% of its industry peers.
- DVA's Operating Margin has been stable in the last couple of years.
- The Gross Margin of DVA (31.98%) is better than 61.76% of its industry peers.
- 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
- 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
- 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
- Based on the Altman-Z score of 1.62, we must say that DVA is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.62, DVA perfoms like the industry average, outperforming 40.20% of the companies in the same industry.
- 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.
- DVA's Debt to FCF ratio of 7.93 is in line compared to the rest of the industry. DVA outperforms 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.32
WACC8.25%
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.
- With a Current ratio value of 1.36, DVA perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
- A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
- DVA's Quick ratio of 1.32 is in line compared to the rest of the industry. DVA outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.94% over the past year.
- DVA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.47% yearly.
- 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
- Based on estimates for the next years, DVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.39% on average per year.
- 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 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
- 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
- The Price/Earnings ratio is 11.69, which indicates a very decent valuation of DVA.
- Compared to the rest of the industry, the Price/Earnings ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 87.25% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, DVA is valued rather cheaply.
- DVA is valuated reasonably with a Price/Forward Earnings ratio of 8.45.
- 95.10% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. DVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
- DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 87.25% of the companies in the same industry.
- 96.08% of the companies in the same industry are more expensive than DVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.9 | ||
| EV/EBITDA | 6.5 |
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 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)0.92
PEG (5Y)1.02
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
- No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.