DAVITA INC (DVA) Stock Fundamental Analysis
NYSE:DVA - New York Stock Exchange, Inc. - US23918K1088 - Common Stock - Currency: USD
Overall DVA gets a fundamental rating of 5 out of 10. We evaluated DVA against 103 industry peers in the Health Care Providers & Services industry. DVA scores excellent on profitability, 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
In the past year DVA was profitable.
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
DVA's Return On Assets of 5.02% is fine compared to the rest of the industry. DVA outperforms 79.61% of its industry peers.
The Return On Invested Capital of DVA (11.16%) is better than 85.44% 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 9.71%.
The last Return On Invested Capital (11.16%) for DVA is above the 3 year average (9.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | N/A | ||
| ROIC | 11.16% |
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 6.63%. This is amongst the best in the industry. DVA outperforms 84.47% of its industry peers.
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 15.01% is amongst the best of the industry. DVA outperforms 88.35% 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 (32.46%) is comparable to the rest of the industry.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.46% |
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.
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 1.69, we must say that DVA is in the distress zone and has some risk of bankruptcy.
DVA's Altman-Z score of 1.69 is on the low side compared to the rest of the industry. DVA is outperformed by 62.14% of its industry peers.
DVA has a debt to FCF ratio of 5.54. This is a neutral value as DVA would need 5.54 years to pay back of all of its debts.
DVA's Debt to FCF ratio of 5.54 is fine compared to the rest of the industry. DVA outperforms 64.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.42
WACC7.88%
2.3 Liquidity
DVA has a Current Ratio of 1.25. 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 worse Current ratio (1.25) than 61.16% of its industry peers.
DVA has a Quick Ratio of 1.20. 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 Quick ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
DVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.87%, which is quite good.
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 5.11% 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)9.87%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-11.5%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.98%
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 13.43% yearly.
DVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y14.45%
EPS Next 2Y16.31%
EPS Next 3Y16.39%
EPS Next 5Y13.43%
Revenue Next Year5.85%
Revenue Next 2Y4.54%
Revenue Next 3Y4.3%
Revenue Next 5Y4.87%
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 stable.
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 15.43, which indicates a correct valuation of DVA.
DVA's Price/Earnings ratio is a bit cheaper when compared to the industry. DVA is cheaper than 79.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVA to the average of the S&P500 Index (27.45), we can say DVA is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.09, which indicates a very decent valuation of DVA.
86.41% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DVA to the average of the S&P500 Index (21.90), we can say DVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaply inside the industry as 81.55% of the companies are valued more expensively.
91.26% 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 | 6.12 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
DVA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.39% in the coming years.
PEG (NY)1.07
PEG (5Y)1.35
EPS Next 2Y16.31%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
142.56
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.38%
Inst Owner Change-3.54%
Ins Owners4.39%
Ins Owner Change1.23%
Market Cap10.76B
Analysts52.94
Price Target163.75 (14.86%)
Short Float %16.37%
Short Ratio7.49
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)2
Avg EPS beat(2)2.98%
Min EPS beat(2)1.67%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)-1.42%
Min EPS beat(4)-9.07%
Max EPS beat(4)4.29%
EPS beat(8)6
Avg EPS beat(8)6.33%
EPS beat(12)8
Avg EPS beat(12)-0.4%
EPS beat(16)11
Avg EPS beat(16)0.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.12%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)8
Avg Revenue beat(16)-0.11%
PT rev (1m)-3.66%
PT rev (3m)-2.8%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-5.08%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 11.09 | ||
| P/S | 0.83 | ||
| P/FCF | 6.12 | ||
| P/OCF | 4.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.49 |
EPS(TTM)9.24
EY6.48%
EPS(NY)12.85
Fwd EY9.01%
FCF(TTM)23.3
FCFY16.34%
OCF(TTM)30.95
OCFY21.71%
SpS171.77
BVpS-3.54
TBVpS-104.48
PEG (NY)1.07
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | N/A | ||
| ROCE | 13.69% | ||
| ROIC | 11.16% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 26.09% | ||
| OM | 15.01% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.46% | ||
| FCFM | 13.57% |
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%
ROICexcg growth 3Y9.54%
ROICexcg 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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 81% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.87% | ||
| Profit Quality | 204.65% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.69 |
F-Score7
WACC7.88%
ROIC/WACC1.42
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)9.87%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%-11.5%
EPS Next Y14.45%
EPS Next 2Y16.31%
EPS Next 3Y16.39%
EPS Next 5Y13.43%
Revenue 1Y (TTM)5.11%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.98%
Revenue Next Year5.85%
Revenue Next 2Y4.54%
Revenue Next 3Y4.3%
Revenue Next 5Y4.87%
EBIT growth 1Y11.97%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year42.76%
EBIT Next 3Y15.54%
EBIT Next 5Y11.9%
FCF growth 1Y63.34%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y37.06%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%