DAVITA INC (DVA) Stock Fundamental Analysis
NYSE:DVA - New York Stock Exchange, Inc. - US23918K1088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to DVA. DVA was compared to 103 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are 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.
DVA had a positive operating cash flow in the past year.
In the past 5 years DVA has always been profitable.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.02%, DVA is doing good in the industry, outperforming 79.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.16%, DVA belongs to the top of the industry, outperforming 85.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.71%.
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
DVA has a Profit Margin of 6.63%. This is amongst the best in the industry. DVA outperforms 84.47% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
DVA has a better Operating Margin (15.01%) than 88.35% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
DVA's Gross Margin of 32.46% is in line compared to the rest of the industry. DVA outperforms 59.22% 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) | 6.63% | ||
| 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.
DVA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DVA has been reduced compared to 5 years ago.
Compared to 1 year ago, DVA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that DVA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DVA (1.69) is worse than 62.14% of its industry peers.
The Debt to FCF ratio of DVA is 5.54, which is a neutral value as it means it would take DVA, 5.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.54, DVA is doing good in the industry, outperforming 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.42
WACC7.84%
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 61.16% of its industry peers.
DVA has a Quick Ratio of 1.20. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DVA (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
DVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.87%, which is quite good.
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 5.11% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
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 13.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y14.45%
EPS Next 2Y16.31%
EPS Next 3Y16.39%
EPS Next 5Y13.43%
Revenue Next Year5.85%
Revenue Next 2Y4.54%
Revenue Next 3Y4.3%
Revenue Next 5Y4.87%
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
With a Price/Earnings ratio of 15.42, DVA is valued correctly.
Based on the Price/Earnings ratio, DVA is valued a bit cheaper than the industry average as 79.61% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. DVA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.09 indicates a reasonable valuation of DVA.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 86.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
81.55% 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 92.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)1.34
EPS Next 2Y16.31%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
142.45
+0.78 (+0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.38%
Inst Owner Change-3.54%
Ins Owners4.39%
Ins Owner Change1.23%
Market Cap10.75B
Analysts52.94
Price Target163.75 (14.95%)
Short Float %15.42%
Short Ratio7.01
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)-3.66%
PT rev (3m)-2.8%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-5.08%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 11.09 | ||
| P/S | 0.83 | ||
| P/FCF | 6.11 | ||
| P/OCF | 4.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.46 |
EPS(TTM)9.24
EY6.49%
EPS(NY)12.85
Fwd EY9.02%
FCF(TTM)23.3
FCFY16.36%
OCF(TTM)30.95
OCFY21.73%
SpS171.77
BVpS-3.54
TBVpS-104.48
PEG (NY)1.07
PEG (5Y)1.34
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 | 1.69 |
F-Score7
WACC7.84%
ROIC/WACC1.42
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 Y14.45%
EPS Next 2Y16.31%
EPS Next 3Y16.39%
EPS Next 5Y13.43%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.98%
Revenue Next Year5.85%
Revenue Next 2Y4.54%
Revenue Next 3Y4.3%
Revenue Next 5Y4.87%
EBIT growth 1Y11.97%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year42.76%
EBIT Next 3Y15.54%
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%