DAVITA INC (DVA) Stock Fundamental Analysis
USA - NYSE:DVA - US23918K1088 - Common Stock
125.88 USD
+0.63 (+0.5%)
125.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DVA. DVA was compared to 100 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on DVA.
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.
In the past 5 years DVA has always been profitable.
Each year in the past 5 years DVA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, DVA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DVA has a Return On Invested Capital of 11.06%. This is amongst the best in the industry. DVA outperforms 85.00% 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 9.33%.
The last Return On Invested Capital (11.06%) for DVA is above the 3 year average (9.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | N/A | ||
| ROIC | 11.06% |
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 Profit Margin of 6.35%. This is amongst the best in the industry. DVA outperforms 82.00% of its industry peers.
In the last couple of years the Profit Margin of DVA has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.01%, DVA belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
DVA's Operating Margin has been stable in the last couple of years.
DVA has a Gross Margin of 32.54%. This is comparable to the rest of the industry: DVA outperforms 58.00% of its industry peers.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 6.35% | ||
| GM | 32.54% |
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.
DVA has less shares outstanding than it did 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 1.66, we must say that DVA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DVA (1.66) is worse than 62.00% of its industry peers.
DVA has a debt to FCF ratio of 7.97. This is a slightly negative value and a sign of low solvency as DVA would need 7.97 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.97, DVA perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.36
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.39 indicates that DVA should not have too much problems paying its short term obligations.
DVA has a Current ratio of 1.39. This is comparable to the rest of the industry: DVA outperforms 44.00% of its industry peers.
A Quick Ratio of 1.34 indicates that DVA should not have too much problems paying its short term obligations.
The Quick ratio of DVA (1.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
DVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.67%.
DVA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.47% yearly.
DVA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.09%.
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)7.67%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%18%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%6.05%
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 13.60% yearly.
Based on estimates for the next years, DVA will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y15.52%
EPS Next 2Y16.46%
EPS Next 3Y15.51%
EPS Next 5Y13.6%
Revenue Next Year5.35%
Revenue Next 2Y4.44%
Revenue Next 3Y4.21%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 12.99, the valuation of DVA can be described as correct.
86.00% of the companies in the same industry are more expensive than DVA, based on the Price/Earnings ratio.
DVA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
DVA is valuated reasonably with a Price/Forward Earnings ratio of 9.77.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 89.00% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
86.00% 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 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.99 | ||
| EV/EBITDA | 6.86 |
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 15.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.13
EPS Next 2Y16.46%
EPS Next 3Y15.51%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
125.88
+0.63 (+0.5%)
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 Change0.04%
Ins Owners4.64%
Ins Owner Change-0.1%
Market Cap9.00B
Analysts52.94
Price Target155.97 (23.9%)
Short Float %21%
Short Ratio8.96
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)2.92%
Min EPS beat(2)1.67%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)0.27%
Min EPS beat(4)-9.07%
Max EPS beat(4)4.29%
EPS beat(8)6
Avg EPS beat(8)5.39%
EPS beat(12)8
Avg EPS beat(12)-0.8%
EPS beat(16)11
Avg EPS beat(16)-0.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)-0.01%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.41%
PT rev (3m)-4.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)0%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 9.77 | ||
| P/S | 0.68 | ||
| P/FCF | 6.99 | ||
| P/OCF | 4.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.86 |
EPS(TTM)9.69
EY7.7%
EPS(NY)12.88
Fwd EY10.24%
FCF(TTM)18.02
FCFY14.31%
OCF(TTM)26.05
OCFY20.69%
SpS184.07
BVpS-5.17
TBVpS-112.55
PEG (NY)0.84
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | N/A | ||
| ROCE | 13.57% | ||
| ROIC | 11.06% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 26.22% | ||
| OM | 15.01% | ||
| PM (TTM) | 6.35% | ||
| GM | 32.54% | ||
| FCFM | 9.79% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.97 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 80.59% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.28% | ||
| Profit Quality | 154.04% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 1.66 |
F-Score6
WACC8.12%
ROIC/WACC1.36
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)7.67%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%18%
EPS Next Y15.52%
EPS Next 2Y16.46%
EPS Next 3Y15.51%
EPS Next 5Y13.6%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%6.05%
Revenue Next Year5.35%
Revenue Next 2Y4.44%
Revenue Next 3Y4.21%
Revenue Next 5Y4.87%
EBIT growth 1Y7.24%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.01%
EBIT Next 3Y15.72%
EBIT Next 5Y11.9%
FCF growth 1Y-5.06%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-5.32%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%