DVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. While DVA has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DVA.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DVA was profitable.
DVA had a positive operating cash flow in the past year.
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

The Return On Assets of DVA (4.40%) is better than 72.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.88%, DVA belongs to the top of the industry, outperforming 82.52% 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 9.16%.
The 3 year average ROIC (9.26%) for DVA is below the current ROIC(10.88%), indicating increased profibility in the last year.

		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 better Profit Margin (5.80%) than 80.58% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
The Operating Margin of DVA (14.57%) is better than 87.38% of its industry peers.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
With a decent Gross Margin value of 31.98%, DVA is doing good in the industry, outperforming 62.14% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
DVA has a worse debt/assets ratio than last year.

2.2 Solvency

DVA has an Altman-Z score of 1.62. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
DVA's Altman-Z score of 1.62 is in line compared to the rest of the industry. DVA outperforms 43.69% of its industry peers.
The Debt to FCF ratio of DVA is 7.93, which is on the high side as it means it would take DVA, 7.93 years of fcf income to pay off 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	1.62

ROIC/WACC1.33

WACC8.19%

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.
The Current ratio of DVA (1.36) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
DVA has a Quick ratio of 1.32. This is comparable to the rest of the industry: DVA outperforms 52.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.36
Quick Ratio	1.32

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.94% 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 11.47% yearly.
The Revenue has been growing slightly by 5.14% 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)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

DVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.39% yearly.
The Revenue is expected to grow by 4.81% on average over the next years.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.85, the valuation of DVA can be described as reasonable.
84.47% of the companies in the same industry are more expensive than DVA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.32, DVA is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.56, the valuation of DVA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DVA is valued cheaper than 93.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DVA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.85
Fwd PE	8.56

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 87.38% of the companies listed in the same industry.
DVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVA is cheaper than 96.12% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.97
EV/EBITDA	6.51

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.