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 108 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
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.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.42%, DVA belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
With an excellent Return On Equity value of 773.06%, DVA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DVA has a better Return On Invested Capital (11.13%) than 88.78% 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 8.14%.
The 3 year average ROIC (9.26%) for DVA is below the current ROIC(11.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 773.06% | ||
| ROIC | 11.13% |
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 7.31%, DVA belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
DVA's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 15.25%, DVA belongs to the best of the industry, outperforming 92.52% of the companies in the same industry.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
Looking at the Gross Margin, with a value of 32.91%, DVA is in line with its industry, outperforming 58.88% of the companies in the same industry.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 7.31% | ||
| GM | 32.91% |
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.
Compared to 1 year ago, DVA has less shares outstanding
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
DVA has an Altman-Z score of 1.71. This is a bad value and indicates that DVA is not financially healthy and even has some risk of bankruptcy.
DVA has a Altman-Z score of 1.71. This is comparable to the rest of the industry: DVA outperforms 42.99% of its industry peers.
The Debt to FCF ratio of DVA is 6.44, which is on the high side as it means it would take DVA, 6.44 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.44, DVA is doing good in the industry, outperforming 70.09% of the companies in the same industry.
DVA has a Debt/Equity ratio of 75.76. This is a high value indicating a heavy dependency on external financing.
DVA's Debt to Equity ratio of 75.76 is on the low side compared to the rest of the industry. DVA is outperformed by 88.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 75.76 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.38
WACC8.04%
2.3 Liquidity
DVA has a Current Ratio of 1.26. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
DVA's Current ratio of 1.26 is on the low side compared to the rest of the industry. DVA is outperformed by 62.62% of its industry peers.
DVA has a Quick Ratio of 1.21. This is a normal value and indicates that DVA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, DVA perfoms like the industry average, outperforming 42.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
DVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.38%, which is quite impressive.
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.
Looking at the last year, DVA shows a small growth in Revenue. The Revenue has grown by 5.56% in the last year.
DVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)28.38%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%38.27%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.73%
3.2 Future
Based on estimates for the next years, DVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.73% on average per year.
Based on estimates for the next years, DVA will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y17.72%
EPS Next 2Y17.56%
EPS Next 3Y15.33%
EPS Next 5Y13.73%
Revenue Next Year5.15%
Revenue Next 2Y4.37%
Revenue Next 3Y4.29%
Revenue Next 5Y3.68%
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.
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 14.99, DVA is valued correctly.
DVA's Price/Earnings ratio is rather cheap when compared to the industry. DVA is cheaper than 80.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, DVA is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.73, which indicates a correct valuation of DVA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 80.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DVA to the average of the S&P500 Index (22.68), we can say DVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 12.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVA is valued cheaply inside the industry as 85.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DVA is valued cheaper than 94.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 7.66 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
DVA's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)1.31
EPS Next 2Y17.56%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
DVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
142.4
-3.52 (-2.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners50.63%
Inst Owner Change-1.76%
Ins Owners4.09%
Ins Owner Change3.47%
Market Cap11.68B
Analysts52.5
Price Target168.47 (18.31%)
Short Float %10.79%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
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)-2.39%
Min EPS beat(2)-9.07%
Max EPS beat(2)4.29%
EPS beat(4)2
Avg EPS beat(4)2%
Min EPS beat(4)-9.07%
Max EPS beat(4)15.35%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)7
Avg EPS beat(12)-1.75%
EPS beat(16)11
Avg EPS beat(16)1.75%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.01%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.41%
Revenue beat(8)6
Avg Revenue beat(8)0.84%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)-0.18%
PT rev (1m)0.02%
PT rev (3m)1.59%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.63%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 12.73 | ||
| P/S | 0.91 | ||
| P/FCF | 7.96 | ||
| P/OCF | 5.77 | ||
| P/B | 96.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.66 |
EPS(TTM)9.5
EY6.67%
EPS(NY)11.18
Fwd EY7.85%
FCF(TTM)17.89
FCFY12.56%
OCF(TTM)24.66
OCFY17.32%
SpS156.29
BVpS1.48
TBVpS-90.87
PEG (NY)0.85
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 773.06% | ||
| ROCE | 13.66% | ||
| ROIC | 11.13% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.04% | ||
| OM | 15.25% | ||
| PM (TTM) | 7.31% | ||
| GM | 32.91% | ||
| FCFM | 11.44% |
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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 75.76 | ||
| Debt/FCF | 6.44 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 76.73% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 75.49% | ||
| Profit Quality | 156.63% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.71 |
F-Score8
WACC8.04%
ROIC/WACC1.38
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)28.38%
EPS 3Y1.41%
EPS 5Y11.47%
EPS Q2Q%38.27%
EPS Next Y17.72%
EPS Next 2Y17.56%
EPS Next 3Y15.33%
EPS Next 5Y13.73%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y3.32%
Revenue growth 5Y2.39%
Sales Q2Q%4.73%
Revenue Next Year5.15%
Revenue Next 2Y4.37%
Revenue Next 3Y4.29%
Revenue Next 5Y3.68%
EBIT growth 1Y22.1%
EBIT growth 3Y3.37%
EBIT growth 5Y2.18%
EBIT Next Year42.4%
EBIT Next 3Y14.18%
EBIT Next 5Y9.57%
FCF growth 1Y-1.64%
FCF growth 3Y4.39%
FCF growth 5Y-3.25%
OCF growth 1Y-1.8%
OCF growth 3Y1.55%
OCF growth 5Y-4.13%