DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
113.98 USD
-0.43 (-0.38%)
113.98 USD
0 (0%)
Overall DVA gets a fundamental rating of 5 out of 10. We evaluated DVA against 102 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, but there are concerns on its financial health. DVA may be a bit undervalued, certainly considering the very reasonable score on growth
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.
DVA had positive earnings in each of the past 5 years.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVA's Return On Assets of 4.40% is fine compared to the rest of the industry. DVA outperforms 71.57% 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 82.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.61%.
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 80.39% 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 86.27% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
DVA has a Gross Margin of 31.98%. This is in the better half of the industry: DVA outperforms 60.78% 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
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.
The debt/assets ratio for DVA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that DVA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DVA (1.63) is worse than 61.76% of its industry peers.
DVA has a debt to FCF ratio of 7.93. This is a slightly negative value and a sign of low solvency as DVA would need 7.93 years to pay back of 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 | 1.63 |
ROIC/WACC1.31
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.36 indicates that DVA should not have too much problems paying its short term obligations.
DVA has a Current ratio of 1.36. This is comparable to the rest of the industry: DVA outperforms 50.00% of its industry peers.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, DVA perfoms like the industry average, outperforming 50.98% of the companies in the same 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.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
DVA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.14%.
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
The Earnings Per Share is expected to grow by 14.39% on average over the next years. This is quite good.
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.
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
With a Price/Earnings ratio of 12.35, DVA is valued correctly.
Based on the Price/Earnings ratio, DVA is valued cheaper than 84.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, DVA is valued rather cheaply.
DVA is valuated reasonably with a Price/Forward Earnings ratio of 8.92.
DVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 94.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DVA to the average of the S&P500 Index (24.04), we can say DVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 6.64 |
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.
PEG (NY)0.97
PEG (5Y)1.08
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% |
113.98
-0.43 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.39%
Inst Owner Change-4.16%
Ins Owners4.68%
Ins Owner Change-0.22%
Market Cap8.05B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price TargetN/A
Short Float %20.64%
Short Ratio8.03
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)-7.93%
PT rev (3m)-9.37%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 8.92 | ||
| P/S | 0.6 | ||
| P/FCF | 6.23 | ||
| P/OCF | 4.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)9.23
EY8.1%
EPS(NY)12.77
Fwd EY11.21%
FCF(TTM)18.3
FCFY16.06%
OCF(TTM)26.82
OCFY23.53%
SpS188.64
BVpS-8.1
TBVpS-118.07
PEG (NY)0.97
PEG (5Y)1.08
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 | 1.63 |
F-Score5
WACC8.28%
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 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.
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 12.35 and the Price/Book (PB) ratio is -14.07.