DAVITA INC (DVA) Stock Fundamental Analysis
NYSE:DVA - New York Stock Exchange, Inc. - US23918K1088 - Common Stock - Currency: USD
Overall DVA gets a fundamental rating of 5 out of 10. We evaluated DVA against 106 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
In the past year DVA was profitable.
In the past year DVA had a positive cash flow from operations.
DVA had positive earnings in each of the past 5 years.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVA's Return On Assets of 5.42% is amongst the best of the industry. DVA outperforms 82.08% of its industry peers.
DVA has a Return On Equity of 773.06%. This is amongst the best in the industry. DVA outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.13%, DVA belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
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 8.79%.
The 3 year average ROIC (9.26%) for DVA is below the current ROIC(11.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 773.06% | ||
| ROIC | 11.13% |
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 (7.31%) than 85.85% of its industry peers.
In the last couple of years the Profit Margin of DVA has remained more or less at the same level.
DVA's Operating Margin of 15.25% is amongst the best of the industry. DVA outperforms 90.57% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 32.91%, DVA is in line with its industry, outperforming 59.43% of the companies in the same industry.
In the last couple of years the Gross Margin of DVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 7.31% | ||
| GM | 32.91% |
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.
Compared to 1 year ago, DVA has less shares outstanding
Compared to 5 years ago, DVA has less shares outstanding
DVA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that DVA is in the distress zone and has some risk of bankruptcy.
DVA has a Altman-Z score (1.68) which is comparable to the rest of the industry.
The Debt to FCF ratio of DVA is 6.44, which is on the high side as it means it would take DVA, 6.44 years of fcf income to pay off all of its debts.
DVA's Debt to FCF ratio of 6.44 is fine compared to the rest of the industry. DVA outperforms 63.21% of its industry peers.
DVA has a Debt/Equity ratio of 75.76. This is a high value indicating a heavy dependency on external financing.
DVA's Debt to Equity ratio of 75.76 is on the low side compared to the rest of the industry. DVA is outperformed by 87.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 75.76 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.43
WACC7.78%
2.3 Liquidity
DVA has a Current Ratio of 1.26. 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 of 1.26. This is in the lower half of the industry: DVA underperforms 61.32% of its industry peers.
DVA has a Quick Ratio of 1.21. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
DVA's Quick ratio of 1.21 is in line compared to the rest of the industry. DVA outperforms 45.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.38% 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 11.47% on average per year.
The Revenue has been growing slightly by 5.56% in the past year.
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)28.38%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%38.27%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.73%
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 12.83% yearly.
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y16.12%
EPS Next 2Y16.71%
EPS Next 3Y15.08%
EPS Next 5Y12.83%
Revenue Next Year5.04%
Revenue Next 2Y4.35%
Revenue Next 3Y4.29%
Revenue Next 5Y5.25%
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.
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
The Price/Earnings ratio is 14.74, which indicates a correct valuation of DVA.
DVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DVA is cheaper than 76.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. DVA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.69 indicates a correct valuation of DVA.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 84.91% of the companies in the same industry.
DVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 80.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 89.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.64 | ||
| EV/EBITDA | 7.37 |
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 15.08% in the coming years.
PEG (NY)0.91
PEG (5Y)1.29
EPS Next 2Y16.71%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
140.03
-1.47 (-1.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.51%
Inst Owner Change0.02%
Ins Owners4.33%
Ins Owner Change2.12%
Market Cap11.20B
Analysts52.94
Price Target168.47 (20.31%)
Short Float %11.08%
Short Ratio4.97
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)1
Avg EPS beat(2)-2.39%
Min EPS beat(2)-9.07%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)2%
Min EPS beat(4)-9.07%
Max EPS beat(4)15.35%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)7
Avg EPS beat(12)-1.75%
EPS beat(16)11
Avg EPS beat(16)1.75%
Revenue beat(2)0
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.01%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.41%
Revenue beat(8)6
Avg Revenue beat(8)0.84%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)-0.18%
PT rev (1m)0%
PT rev (3m)3.38%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-17.36%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.69 | ||
| P/S | 0.87 | ||
| P/FCF | 7.64 | ||
| P/OCF | 5.54 | ||
| P/B | 92.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.37 |
EPS(TTM)9.5
EY6.78%
EPS(NY)11.03
Fwd EY7.88%
FCF(TTM)18.33
FCFY13.09%
OCF(TTM)25.28
OCFY18.05%
SpS160.19
BVpS1.51
TBVpS-93.14
PEG (NY)0.91
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 773.06% | ||
| ROCE | 13.66% | ||
| ROIC | 11.13% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.04% | ||
| OM | 15.25% | ||
| PM (TTM) | 7.31% | ||
| GM | 32.91% | ||
| FCFM | 11.44% |
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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 75.76 | ||
| Debt/FCF | 6.44 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 76.73% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 75.49% | ||
| Profit Quality | 156.63% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.68 |
F-Score8
WACC7.78%
ROIC/WACC1.43
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)28.38%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%38.27%
EPS Next Y16.12%
EPS Next 2Y16.71%
EPS Next 3Y15.08%
EPS Next 5Y12.83%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.73%
Revenue Next Year5.04%
Revenue Next 2Y4.35%
Revenue Next 3Y4.29%
Revenue Next 5Y5.25%
EBIT growth 1Y22.1%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.47%
EBIT Next 3Y16.3%
EBIT Next 5Y11.9%
FCF growth 1Y-1.64%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-1.8%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%