DAVITA INC (DVA)
US23918K1088 - Common Stock
Overall DVA gets a fundamental rating of 6 out of 10. We evaluated DVA against 109 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are some minor 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.
DVA had a positive operating cash flow in the past year.
Each year in the past 5 years DVA has been profitable.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
DVA's Return On Assets of 4.73% is fine compared to the rest of the industry. DVA outperforms 77.78% of its industry peers.
DVA's Return On Equity of 214.03% is amongst the best of the industry. DVA outperforms 99.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.41%, DVA belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DVA is in line with the industry average of 8.15%.
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 86.11% of its industry peers.
In the last couple of years the Profit Margin of DVA has grown nicely.
DVA has a better Operating Margin (14.88%) than 89.81% of its industry peers.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
The Gross Margin of DVA (32.80%) is comparable to the rest of the industry.
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
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
The number of shares outstanding for DVA has been reduced compared to 5 years ago.
Compared to 1 year ago, DVA has an improved 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.
DVA has a Altman-Z score (1.69) which is in line with its industry peers.
The Debt to FCF ratio of DVA is 6.75, which is on the high side as it means it would take DVA, 6.75 years of fcf income to pay off all of its debts.
DVA has a better Debt to FCF ratio (6.75) than 69.44% of its industry peers.
A Debt/Equity ratio of 23.95 is on the high side and indicates that DVA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 23.95, DVA is doing worse than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 23.95 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.49
WACC6.97%
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.
DVA has a Quick Ratio of 1.33. 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 (1.33) 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.
Measured over the past years, DVA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.76% on average per year.
Looking at the last year, DVA shows a small growth in Revenue. The Revenue has grown by 6.34% in the last year.
The Revenue has been growing slightly by 1.26% on average over the past years.
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.
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.19% yearly.
EPS Next Y32.94%
EPS Next 2Y24.01%
EPS Next 3Y22.52%
EPS Next 5Y17.66%
Revenue Next Year6.31%
Revenue Next 2Y4.93%
Revenue Next 3Y4.46%
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.
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
A Price/Earnings ratio of 17.10 indicates a rather expensive valuation of DVA.
Based on the Price/Earnings ratio, DVA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
DVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of DVA.
Based on the Price/Forward Earnings ratio, DVA is valued a bit cheaper than 79.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DVA to the average of the S&P500 Index (22.83), we can say DVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 82.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaply inside the industry as 90.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.79 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The 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)0.52
PEG (5Y)1.09
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 (12/20/2024, 8:06:08 PM)
After market: 151.85 0 (0%)151.85
+4.31 (+2.92%)
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-1.87%
Ins Owners4.09%
Ins Owner Change2.22%
Market Cap12.45B
Analysts67.69
Price Target162.96 (7.32%)
Short Float %8.96%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1.58%
PT rev (3m)6.16%
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%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.34 | ||
| P/S | 0.98 | ||
| P/FCF | 8.79 | ||
| P/OCF | 6.35 | ||
| P/B | 32.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)8.88
EY5.85%
EPS(NY)11.38
Fwd EY7.49%
FCF(TTM)17.27
FCFY11.37%
OCF(TTM)23.9
OCFY15.74%
SpS154.47
BVpS4.72
TBVpS-85.84
PEG (NY)0.52
PEG (5Y)1.09
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 | 1.69 |
F-Score8
WACC6.97%
ROIC/WACC1.49
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 Year6.31%
Revenue Next 2Y4.93%
Revenue Next 3Y4.46%
Revenue Next 5Y4.19%
EBIT growth 1Y30.45%
EBIT growth 3Y-1.67%
EBIT growth 5Y1.45%
EBIT Next Year59.3%
EBIT Next 3Y19.89%
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%