DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
119.68 USD
-0.42 (-0.35%)
119.68 USD
0 (0%)
DVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are concerns on its financial health. DVA is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.40%, DVA is doing good in the industry, outperforming 73.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.88%, DVA belongs to the top of the industry, outperforming 83.17% 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 9.26%.
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 Profit Margin of 5.80%. This is amongst the best in the industry. DVA outperforms 80.20% 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 86.14% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
DVA's Gross Margin of 31.98% is in line compared to the rest of the industry. DVA outperforms 59.41% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DVA is still creating some value.
The number of shares outstanding for DVA has been reduced compared to 1 year ago.
DVA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DVA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that DVA is in the distress zone and has some risk of bankruptcy.
DVA's Altman-Z score of 1.65 is on the low side compared to the rest of the industry. DVA is outperformed by 60.40% 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's Debt to FCF ratio of 7.93 is in line compared to the rest of the industry. DVA outperforms 55.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.31
WACC8.29%
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.
The Quick ratio of DVA (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 |
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.
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
Based on estimates for the next years, DVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.39% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y16.39%
EPS Next 2Y16.3%
EPS Next 3Y15.31%
EPS Next 5Y14.39%
Revenue Next Year5.62%
Revenue Next 2Y4.47%
Revenue Next 3Y4.13%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.97, which indicates a correct valuation of DVA.
DVA's Price/Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 84.16% of the companies in the same industry.
DVA is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.31, the valuation of DVA can be described as reasonable.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 93.07% of the companies in the same industry.
DVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
85.15% of the companies in the same industry are more expensive than DVA, based on the Enterprise Value to EBITDA ratio.
92.08% of the companies in the same industry are more expensive than DVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 6.84 |
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.
DVA has a very decent profitability rating, which may justify a higher PE ratio.
DVA's earnings are expected to grow with 15.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)1.13
EPS Next 2Y16.3%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
119.68
-0.42 (-0.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.88%
Inst Owner Change-4.17%
Ins Owners4.64%
Ins Owner Change-0.22%
Market Cap8.45B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target141.36 (18.11%)
Short Float %18.44%
Short Ratio7.87
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)-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)-9.37%
PT rev (3m)-9.74%
EPS NQ rev (1m)14.3%
EPS NQ rev (3m)14.85%
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 9.31 | ||
| P/S | 0.64 | ||
| P/FCF | 6.62 | ||
| P/OCF | 4.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)9.23
EY7.71%
EPS(NY)12.85
Fwd EY10.74%
FCF(TTM)18.07
FCFY15.1%
OCF(TTM)26.48
OCFY22.13%
SpS186.27
BVpS-8
TBVpS-116.58
PEG (NY)0.79
PEG (5Y)1.13
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 | 1.65 |
F-Score5
WACC8.29%
ROIC/WACC1.31
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 Y16.39%
EPS Next 2Y16.3%
EPS Next 3Y15.31%
EPS Next 5Y14.39%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
Revenue Next Year5.62%
Revenue Next 2Y4.47%
Revenue Next 3Y4.13%
Revenue Next 5Y4.81%
EBIT growth 1Y2.94%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.01%
EBIT Next 3Y15.72%
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.
Can you provide the valuation status for DAVITA INC?
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.
What are the PE and PB ratios of DAVITA INC (DVA) stock?
The Price/Earnings (PE) ratio for DAVITA INC (DVA) is 12.97 and the Price/Book (PB) ratio is -14.96.