DAVITA INC (DVA) Stock Fundamental Analysis
NYSE:DVA - New York Stock Exchange, Inc. - US23918K1088 - Common Stock
DVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 industry peers in the Health Care Providers & Services industry. While DVA has a great profitability rating, there are some minor 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
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.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DVA (4.73%) is better than 77.57% of its industry peers.
DVA has a Return On Equity of 214.03%. This is amongst the best in the industry. DVA outperforms 99.07% of its industry peers.
With an excellent Return On Invested Capital value of 10.41%, DVA belongs to the best of the industry, outperforming 87.85% 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 8.27%.
The last Return On Invested Capital (10.41%) for DVA is above the 3 year average (8.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 214.03% | ||
| ROIC | 10.41% |
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
DVA has a better Profit Margin (6.53%) than 85.98% of its industry peers.
In the last couple of years the Profit Margin of DVA has grown nicely.
DVA has a Operating Margin of 14.88%. This is amongst the best in the industry. DVA outperforms 89.72% 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 32.80%. This is comparable to the rest of the industry: DVA outperforms 58.88% of its industry peers.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.88% | ||
| PM (TTM) | 6.53% | ||
| GM | 32.8% |
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
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
The debt/assets ratio for DVA has been reduced compared to a year ago.
2.2 Solvency
DVA has an Altman-Z score of 1.73. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.73, DVA perfoms like the industry average, outperforming 44.86% of the companies in the same industry.
DVA has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as DVA would need 6.75 years to pay back of all of its debts.
DVA has a better Debt to FCF ratio (6.75) than 70.09% of its industry peers.
DVA has a Debt/Equity ratio of 23.95. This is a high value indicating a heavy dependency on external financing.
DVA's Debt to Equity ratio of 23.95 is on the low side compared to the rest of the industry. DVA is outperformed by 87.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 23.95 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.43
WACC7.26%
2.3 Liquidity
DVA has a Current Ratio of 1.37. 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 (1.37) which is in line with its industry peers.
A Quick Ratio of 1.33 indicates that DVA should not have too much problems paying its short term obligations.
The Quick ratio of DVA (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.40% 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 15.76% yearly.
DVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
Measured over the past years, DVA shows a small growth in Revenue. The Revenue has been growing by 1.26% on average per year.
EPS 1Y (TTM)39.4%
EPS 3Y0.68%
EPS 5Y15.76%
EPS Q2Q%-4.58%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y1.67%
Revenue growth 5Y1.26%
Sales Q2Q%4.56%
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 17.66% on average per year.
The Revenue is expected to grow by 4.19% on average over the next years.
EPS Next Y32.94%
EPS Next 2Y24.01%
EPS Next 3Y22.52%
EPS Next 5Y17.66%
Revenue Next Year6.32%
Revenue Next 2Y4.94%
Revenue Next 3Y4.47%
Revenue Next 5Y4.19%
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 19.14 indicates a rather expensive valuation of DVA.
DVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DVA is cheaper than 71.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVA to the average of the S&P500 Index (28.29), we can say DVA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.94, the valuation of DVA can be described as correct.
Based on the Price/Forward Earnings ratio, DVA is valued a bit cheaper than the industry average as 76.64% of the companies are valued more expensively.
DVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaply inside the industry as 82.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaper than 91.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | 8.39 |
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.
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 22.52% in the coming years.
PEG (NY)0.58
PEG (5Y)1.21
EPS Next 2Y24.01%
EPS Next 3Y22.52%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAVITA INC
NYSE:DVA (1/21/2025, 8:04:00 PM)
After market: 169.97 0 (0%)169.97
+3.73 (+2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.63%
Inst Owner Change-0.04%
Ins Owners4.09%
Ins Owner Change2.22%
Market Cap13.94B
Analysts52.5
Price Target162.96 (-4.12%)
Short Float %10.46%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.83%
Min EPS beat(2)-9.07%
Max EPS beat(2)-2.59%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-9.07%
Max EPS beat(4)14.62%
EPS beat(8)5
Avg EPS beat(8)2.03%
EPS beat(12)7
Avg EPS beat(12)-1.24%
EPS beat(16)10
Avg EPS beat(16)0.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.12%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.55%
Revenue beat(8)6
Avg Revenue beat(8)0.66%
Revenue beat(12)7
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)-0.29%
PT rev (1m)0%
PT rev (3m)2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 14.94 | ||
| P/S | 1.1 | ||
| P/FCF | 9.84 | ||
| P/OCF | 7.11 | ||
| P/B | 36.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.39 |
EPS(TTM)8.88
EY5.22%
EPS(NY)11.38
Fwd EY6.7%
FCF(TTM)17.27
FCFY10.16%
OCF(TTM)23.9
OCFY14.06%
SpS154.47
BVpS4.72
TBVpS-85.84
PEG (NY)0.58
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 214.03% | ||
| ROCE | 12.94% | ||
| ROIC | 10.41% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 25.08% | ||
| OM | 14.88% | ||
| PM (TTM) | 6.53% | ||
| GM | 32.8% | ||
| FCFM | 11.18% |
ROA(3y)4.37%
ROA(5y)4.47%
ROE(3y)91.17%
ROE(5y)73.49%
ROIC(3y)8.69%
ROIC(5y)8.97%
ROICexc(3y)8.94%
ROICexc(5y)9.32%
ROICexgc(3y)18.55%
ROICexgc(5y)19.04%
ROCE(3y)10.81%
ROCE(5y)11.16%
ROICexcg growth 3Y0.95%
ROICexcg growth 5Y2.62%
ROICexc growth 3Y-0.95%
ROICexc growth 5Y1.5%
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%
F-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 23.95 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 72.98% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.52% | ||
| Profit Quality | 171.06% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.73 |
F-Score8
WACC7.26%
ROIC/WACC1.43
Cap/Depr(3y)84.27%
Cap/Depr(5y)96.88%
Cap/Sales(3y)5.13%
Cap/Sales(5y)5.59%
Profit Quality(3y)173.03%
Profit Quality(5y)180.18%
High Growth Momentum
Growth
EPS 1Y (TTM)39.4%
EPS 3Y0.68%
EPS 5Y15.76%
EPS Q2Q%-4.58%
EPS Next Y32.94%
EPS Next 2Y24.01%
EPS Next 3Y22.52%
EPS Next 5Y17.66%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y1.67%
Revenue growth 5Y1.26%
Sales Q2Q%4.56%
Revenue Next Year6.32%
Revenue Next 2Y4.94%
Revenue Next 3Y4.47%
Revenue Next 5Y4.19%
EBIT growth 1Y30.45%
EBIT growth 3Y-1.67%
EBIT growth 5Y1.45%
EBIT Next Year59.71%
EBIT Next 3Y20.16%
EBIT Next 5Y12%
FCF growth 1Y22.85%
FCF growth 3Y4.56%
FCF growth 5Y22.36%
OCF growth 1Y11.93%
OCF growth 3Y1.33%
OCF growth 5Y6.11%