DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
113.61 USD
-0.21 (-0.18%)
113.61 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DVA. DVA was compared to 101 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
DVA has a Return On Assets of 4.40%. This is in the better half of the industry: DVA outperforms 71.29% of its industry peers.
DVA's Return On Invested Capital of 10.88% is amongst the best of the industry. DVA outperforms 82.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.58%.
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 Profit Margin of 5.80%. This is amongst the best in the industry. DVA outperforms 80.20% of its industry peers.
In the last couple of years the Profit Margin of DVA has remained more or less at the same level.
With an excellent Operating Margin value of 14.57%, DVA belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
DVA's Operating Margin has been stable in the last couple of years.
The Gross Margin of DVA (31.98%) is better than 61.39% of its industry peers.
DVA's Gross Margin has improved in the last couple of years.
| 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
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 1.63, we must say that DVA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, DVA is doing worse than 62.38% 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 has a Debt to FCF ratio (7.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.3
WACC8.36%
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.
DVA has a Current ratio (1.36) which is in line with its industry peers.
DVA has a Quick Ratio of 1.32. 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 1.32 is in line compared to the rest of the industry. DVA outperforms 51.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
DVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.94%.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
DVA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.14%.
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
The Earnings Per Share is expected to grow by 14.39% on average over the next years. This is quite good.
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
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.
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
DVA is valuated correctly with a Price/Earnings ratio of 12.31.
84.16% 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 26.51.
The Price/Forward Earnings ratio is 8.89, which indicates a very decent valuation of DVA.
93.07% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 86.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaply inside the industry as 94.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 6.62 |
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 16.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)1.07
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
113.61
-0.21 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.39%
Inst Owner Change-4.16%
Ins Owners4.68%
Ins Owner Change-0.22%
Market Cap8.02B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target141.36 (24.43%)
Short Float %20.5%
Short Ratio7.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-16.57%
Min EPS beat(2)-37.31%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)-6.79%
Min EPS beat(4)-37.31%
Max EPS beat(4)4.29%
EPS beat(8)5
Avg EPS beat(8)-2.85%
EPS beat(12)8
Avg EPS beat(12)-0.85%
EPS beat(16)10
Avg EPS beat(16)-2.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.01%
Revenue beat(8)3
Avg Revenue beat(8)0.18%
Revenue beat(12)6
Avg Revenue beat(12)0.26%
Revenue beat(16)7
Avg Revenue beat(16)-0.21%
PT rev (1m)0%
PT rev (3m)-9.37%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.6 | ||
| P/FCF | 6.21 | ||
| P/OCF | 4.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.62 |
EPS(TTM)9.23
EY8.12%
EPS(NY)12.77
Fwd EY11.24%
FCF(TTM)18.3
FCFY16.11%
OCF(TTM)26.82
OCFY23.61%
SpS188.64
BVpS-8.1
TBVpS-118.07
PEG (NY)0.97
PEG (5Y)1.07
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | N/A | ||
| ROCE | 13.34% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.46% | ||
| ROICexgc | 26.19% | ||
| OM | 14.57% | ||
| PM (TTM) | 5.8% | ||
| GM | 31.98% | ||
| FCFM | 9.7% |
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%
ROICexgc growth 3Y9.54%
ROICexgc 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-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 85.53% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.64% | ||
| Profit Quality | 167.42% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.63 |
F-Score5
WACC8.36%
ROIC/WACC1.3
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)3.94%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-18.4%
EPS Next Y12.69%
EPS Next 2Y15.96%
EPS Next 3Y16.78%
EPS Next 5Y14.39%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
Revenue Next Year5.89%
Revenue Next 2Y4.42%
Revenue Next 3Y4.2%
Revenue Next 5Y4.81%
EBIT growth 1Y2.94%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year42.6%
EBIT Next 3Y15.11%
EBIT Next 5Y11.57%
FCF growth 1Y-1.7%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-1.26%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%
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.