DAVITA INC (DVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVA - US23918K1088 - Common Stock
111.45 USD
-1.14 (-1.01%)
111.45 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DVA. DVA was compared to 100 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on DVA.
1. Profitability
1.1 Basic Checks
In the past year DVA was profitable.
DVA had a positive operating cash flow in the past year.
DVA had positive earnings in each of the past 5 years.
In the past 5 years DVA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.40%, DVA is in the better half of the industry, outperforming 72.28% of the companies in the same industry.
The Return On Invested Capital of DVA (10.88%) is better than 82.18% of its industry peers.
DVA had an Average Return On Invested Capital over the past 3 years of 9.26%. This is in line with the industry average of 9.19%.
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 81.19% 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.
The Operating Margin of DVA (14.57%) is better than 87.13% of its industry peers.
DVA's Operating Margin has been stable in the last couple of years.
The Gross Margin of DVA (31.98%) is better than 61.39% 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
The debt/assets ratio for DVA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that DVA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DVA (1.62) is worse than 61.39% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.31
WACC8.33%
2.3 Liquidity
DVA has a Current Ratio of 1.36. 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 1.36 is in line compared to the rest of the industry. DVA outperforms 51.49% of its industry peers.
A Quick Ratio of 1.32 indicates that DVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, DVA is in line with its industry, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.94% 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 5.14% 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)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 12.07.
Based on the Price/Earnings ratio, DVA is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
DVA is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.72, which indicates a very decent valuation of DVA.
95.05% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DVA indicates a rather cheap valuation: DVA is cheaper than 86.14% of the companies listed in the same industry.
DVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVA is cheaper than 95.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
DVA's 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.
A more expensive valuation may be justified as DVA's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)0.95
PEG (5Y)1.05
EPS Next 2Y15.96%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
111.45
-1.14 (-1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners51.6%
Inst Owner Change0.22%
Ins Owners4.68%
Ins Owner Change-0.22%
Market Cap7.87B
Revenue(TTM)13.32B
Net Income(TTM)771.91M
Analysts52.94
Price Target141.36 (26.84%)
Short Float %20.5%
Short Ratio7.89
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)0%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.59 | ||
| P/FCF | 6.09 | ||
| P/OCF | 4.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.56 |
EPS(TTM)9.23
EY8.28%
EPS(NY)12.77
Fwd EY11.46%
FCF(TTM)18.3
FCFY16.42%
OCF(TTM)26.82
OCFY24.06%
SpS188.64
BVpS-8.1
TBVpS-118.07
PEG (NY)0.95
PEG (5Y)1.05
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 | 1.62 |
F-Score5
WACC8.33%
ROIC/WACC1.31
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.
What is the valuation status of DAVITA INC (DVA) stock?
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.
How financially healthy is DAVITA INC?
The financial health rating of DAVITA INC (DVA) is 3 / 10.
What is the expected EPS growth for DAVITA INC (DVA) stock?
The Earnings per Share (EPS) of DAVITA INC (DVA) is expected to grow by 12.69% in the next year.