DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
111.45 USD
-1.14 (-1.01%)
111.45 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. While DVA belongs to the best of the industry regarding profitability, 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.
DVA had a positive operating cash flow in the past year.
In the past 5 years DVA has always been profitable.
Each year in the past 5 years DVA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DVA (4.40%) is better than 72.28% of its industry peers.
The Return On Invested Capital of DVA (10.88%) is better than 82.18% 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 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 81.19% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
DVA's Operating Margin of 14.57% is amongst the best of the industry. DVA outperforms 87.13% 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 (31.98%) is better than 61.39% 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%
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
The debt/assets ratio for DVA is higher compared to a year ago.
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.
DVA has a worse Altman-Z score (1.62) than 62.38% 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 | 1.62 |
ROIC/WACC1.3
WACC8.34%
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 of 1.36. This is comparable to the rest of the industry: DVA outperforms 51.49% of its industry peers.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
DVA's Quick ratio of 1.32 is in line compared to the rest of the industry. DVA outperforms 52.48% of its industry peers.
| 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.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
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
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.
Based on estimates for the next years, DVA will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.07 indicates a correct valuation of DVA.
Compared to the rest of the industry, the Price/Earnings ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 86.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, DVA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.72 indicates a reasonable valuation of DVA.
96.04% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 8.72 |
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 86.14% 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 95.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 6.59 |
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.
A more expensive valuation may be justified as DVA's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)0.95
PEG (5Y)1.05
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
111.45
-1.14 (-1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.6%
Inst Owner Change0%
Ins Owners4.68%
Ins Owner Change-0.22%
Market Cap7.87B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target141.36 (26.84%)
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)0%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.59 | ||
| P/FCF | 6.09 | ||
| P/OCF | 4.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.59 |
EPS(TTM)9.23
EY8.28%
EPS(NY)12.77
Fwd EY11.46%
FCF(TTM)18.3
FCFY16.42%
OCF(TTM)26.82
OCFY24.06%
SpS188.64
BVpS-8.1
TBVpS-118.07
PEG (NY)0.95
PEG (5Y)1.05
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 | 1.62 |
F-Score5
WACC8.34%
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.