DAVITA INC (DVA) Stock Fundamental Analysis
USA - NYSE:DVA - US23918K1088 - Common Stock
126.56 USD
-3.05 (-2.35%)
125.1 USD
-1.46 (-1.15%)
Overall DVA gets a fundamental rating of 5 out of 10. We evaluated DVA 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 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.
DVA had a positive operating cash flow in the past year.
Each year in the past 5 years DVA has been profitable.
DVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVA has a Return On Assets of 4.78%. This is in the better half of the industry: DVA outperforms 75.25% of its industry peers.
DVA's Return On Invested Capital of 11.06% is amongst the best of the industry. DVA outperforms 85.15% 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 9.34%.
The last Return On Invested Capital (11.06%) for DVA is above the 3 year average (9.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | N/A | ||
| ROIC | 11.06% |
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 better Profit Margin (6.35%) than 82.18% of its industry peers.
DVA's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.01%, DVA belongs to the top of the industry, outperforming 88.12% of the companies in the same industry.
DVA's Operating Margin has been stable in the last couple of years.
DVA has a Gross Margin of 32.54%. This is comparable to the rest of the industry: DVA outperforms 58.42% of its industry peers.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 6.35% | ||
| GM | 32.54% |
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
The number of shares outstanding for DVA has been reduced compared to 5 years ago.
Compared to 1 year ago, DVA has a worse debt to assets ratio.
2.2 Solvency
DVA has an Altman-Z score of 1.66. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, DVA is doing worse than 62.38% of the companies in the same industry.
The Debt to FCF ratio of DVA is 7.97, which is on the high side as it means it would take DVA, 7.97 years of fcf income to pay off all of its debts.
DVA has a Debt to FCF ratio (7.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.97 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.28
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.39 indicates that DVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, DVA perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that DVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, DVA is in line with its industry, outperforming 51.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.23% over the past year.
Measured over the past years, DVA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.47% on average per year.
The Revenue has been growing slightly by 5.56% in the past 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)9.23%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%0.4%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
3.2 Future
The Earnings Per Share is expected to grow by 13.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y15.48%
EPS Next 2Y16.44%
EPS Next 3Y15.75%
EPS Next 5Y13.6%
Revenue Next Year5.34%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 13.05.
85.15% of the companies in the same industry are more expensive than DVA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DVA to the average of the S&P500 Index (26.76), we can say DVA is valued rather cheaply.
A Price/Forward Earnings ratio of 9.83 indicates a reasonable valuation of DVA.
90.10% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
DVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaper than 87.13% of the companies in the same industry.
92.08% 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 | 7.02 | ||
| EV/EBITDA | 6.9 |
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 15.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.14
EPS Next 2Y16.44%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
126.56
-3.05 (-2.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.88%
Inst Owner Change-0.87%
Ins Owners4.64%
Ins Owner Change-0.1%
Market Cap9.05B
Revenue(TTM)12.82B
Net Income(TTM)836.27M
Analysts52.94
Price Target153.54 (21.32%)
Short Float %18.22%
Short Ratio9.07
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)2.92%
Min EPS beat(2)1.67%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)0.27%
Min EPS beat(4)-9.07%
Max EPS beat(4)4.29%
EPS beat(8)6
Avg EPS beat(8)5.39%
EPS beat(12)8
Avg EPS beat(12)-0.8%
EPS beat(16)11
Avg EPS beat(16)-0.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)-0.01%
Revenue beat(8)4
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)0%
PT rev (3m)-4.75%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 9.83 | ||
| P/S | 0.69 | ||
| P/FCF | 7.02 | ||
| P/OCF | 4.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.9 |
EPS(TTM)9.7
EY7.66%
EPS(NY)12.88
Fwd EY10.18%
FCF(TTM)18.02
FCFY14.24%
OCF(TTM)26.05
OCFY20.58%
SpS184.07
BVpS-5.17
TBVpS-112.55
PEG (NY)0.84
PEG (5Y)1.14
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | N/A | ||
| ROCE | 13.57% | ||
| ROIC | 11.06% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 26.22% | ||
| OM | 15.01% | ||
| PM (TTM) | 6.35% | ||
| GM | 32.54% | ||
| FCFM | 9.79% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.97 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 80.59% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.28% | ||
| Profit Quality | 154.04% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 1.66 |
F-Score6
WACC8.62%
ROIC/WACC1.28
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)9.23%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%0.4%
EPS Next Y15.48%
EPS Next 2Y16.44%
EPS Next 3Y15.75%
EPS Next 5Y13.6%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.8%
Revenue Next Year5.34%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
Revenue Next 5Y4.87%
EBIT growth 1Y7.24%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year43.01%
EBIT Next 3Y15.72%
EBIT Next 5Y11.9%
FCF growth 1Y-5.06%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-5.32%
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 13.05 and the Price/Book (PB) ratio is -24.48.