DVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. DVA has an excellent profitability rating, but there are concerns on its financial health. DVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

DVA had positive earnings in the past year.
In the past year DVA had a positive cash flow from operations.
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 has a Return On Assets of 4.40%. This is in the better half of the industry: DVA outperforms 72.55% of its industry peers.
The Return On Invested Capital of DVA (10.88%) is better than 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DVA is in line with the industry average of 9.21%.
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

Looking at the Profit Margin, with a value of 5.80%, DVA belongs to the top of the industry, outperforming 81.37% of the companies in the same industry.
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 14.57% is amongst the best of the industry. DVA outperforms 87.25% 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 better Gross Margin (31.98%) than 61.76% of its industry peers.
In the last couple of years the Gross Margin of DVA has grown nicely.

		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

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
DVA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DVA has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.62, we must say that DVA is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.62, DVA perfoms like the industry average, outperforming 40.20% of the companies in the same industry.
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's Debt to FCF ratio of 7.93 is in line compared to the rest of the industry. DVA outperforms 55.88% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	7.93
Altman-Z	1.62

ROIC/WACC1.32

WACC8.24%

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.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, DVA is in line with its industry, outperforming 52.94% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.36
Quick Ratio	1.32

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WACC

Debt/Equity

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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%.
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.
Looking at the last year, DVA shows a small growth in Revenue. The Revenue has grown by 5.14% in the last year.
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

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.
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

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 11.71, the valuation of DVA can be described as reasonable.
Based on the Price/Earnings ratio, DVA is valued cheaply inside the industry as 87.25% of the companies are valued more expensively.
DVA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.46 indicates a reasonable valuation of DVA.
Based on the Price/Forward Earnings ratio, DVA is valued cheaply inside the industry as 95.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.32. DVA is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.71
Fwd PE	8.46

4.2 Price Multiples

DVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVA is cheaper than 87.25% of the companies in the same industry.
DVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVA is cheaper than 96.08% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.91
EV/EBITDA	6.5

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 decent profitability rating of DVA 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.