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. While DVA has a great profitability rating, there are quite some concerns on its financial health. DVA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DVA was profitable.
DVA had a positive operating cash flow in the past year.
In the past 5 years DVA has always been profitable.
DVA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

DVA has a better Return On Assets (4.40%) than 71.84% of its industry peers.
DVA has a Return On Invested Capital of 10.88%. This is amongst the best in the industry. DVA outperforms 82.52% 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 9.21%.
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 80.58% of its industry peers.
In the last couple of years the Profit Margin of DVA has remained more or less at the same level.
The Operating Margin of DVA (14.57%) is better than 87.38% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.98%, DVA is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
The debt/assets ratio for DVA is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.61, we must say that DVA is in the distress zone and has some risk of bankruptcy.
DVA's Altman-Z score of 1.61 is on the low side compared to the rest of the industry. DVA is outperformed by 60.19% 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.
With a Debt to FCF ratio value of 7.93, DVA perfoms like the industry average, outperforming 56.31% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	7.93
Altman-Z	1.61

ROIC/WACC1.32

WACC8.23%

2.3 Liquidity

A Current Ratio of 1.36 indicates that DVA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, DVA is in line with its industry, outperforming 51.46% 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.
With a Quick ratio value of 1.32, DVA perfoms like the industry average, outperforming 52.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.36
Quick Ratio	1.32

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WACC

Debt/Equity

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Altman-Z score

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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%.
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.65, which indicates a very decent valuation of DVA.
DVA's Price/Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 87.38% of the companies in the same industry.
DVA is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.42, the valuation of DVA can be described as reasonable.
95.15% 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 (25.98), we can say DVA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.65
Fwd PE	8.42

4.2 Price Multiples

86.41% of the companies in the same industry are more expensive than DVA, based on the Enterprise Value to EBITDA ratio.
96.12% 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	5.87
EV/EBITDA	6.48

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 16.78% in the coming years. This may justify a more expensive valuation.