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%)
Taking everything into account, DVA scores 5 out of 10 in our fundamental rating. DVA was compared to 101 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.
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.
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 71.57% of its industry peers.
The Return On Invested Capital of DVA (10.88%) is better than 82.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DVA is in line with the industry average of 9.58%.
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
With an excellent Profit Margin value of 5.80%, DVA belongs to the best of the industry, outperforming 80.39% 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.
Looking at the Operating Margin, with a value of 14.57%, DVA belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
DVA's Operating Margin has been stable in the last couple of years.
The Gross Margin of DVA (31.98%) is better than 60.78% 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
DVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DVA has less shares outstanding
Compared to 1 year ago, DVA has a worse debt to assets ratio.
2.2 Solvency
DVA has an Altman-Z score of 1.63. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.63, DVA is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
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 | 1.63 |
ROIC/WACC1.32
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.36 indicates that DVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, DVA perfoms like the industry average, outperforming 50.00% of the companies in the same 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 (1.32) which 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
DVA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.94%.
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.
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
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
DVA is valuated correctly with a Price/Earnings ratio of 12.35.
Based on the Price/Earnings ratio, DVA is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
DVA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 8.92, 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 92.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, DVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
87.25% of the companies in the same industry are more expensive than DVA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 94.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 6.63 |
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.
PEG (NY)0.97
PEG (5Y)1.08
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
No dividends for DVA!.
| 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 Target141.36 (24.02%)
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)0%
PT rev (3m)-9.37%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
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 | 6.63 |
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
WACC8.27%
ROIC/WACC1.32
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.