DAVITA INC (DVA)
US23918K1088 - Common Stock
Overall DVA gets a fundamental rating of 6 out of 10. We evaluated DVA against 113 industry peers in the Health Care Providers & Services industry. While DVA has a great profitability rating, there are some minor 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.
In the past year DVA had a positive cash flow from operations.
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 Return On Assets of 4.73%. This is in the better half of the industry: DVA outperforms 78.76% of its industry peers.
With an excellent Return On Equity value of 214.03%, DVA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of DVA (10.41%) is better than 89.38% 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 8.10%.
The last Return On Invested Capital (10.41%) for DVA is above the 3 year average (8.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 214.03% | ||
| ROIC | 10.41% |
ROA(3y)4.37%
ROA(5y)4.47%
ROE(3y)91.17%
ROE(5y)73.49%
ROIC(3y)8.69%
ROIC(5y)8.97%
1.3 Margins
DVA's Profit Margin of 6.53% is amongst the best of the industry. DVA outperforms 86.73% of its industry peers.
In the last couple of years the Profit Margin of DVA has grown nicely.
DVA's Operating Margin of 14.88% is amongst the best of the industry. DVA outperforms 91.15% of its industry peers.
In the last couple of years the Operating Margin of DVA has remained more or less at the same level.
DVA has a Gross Margin of 32.80%. This is in the better half of the industry: DVA outperforms 61.95% of its industry peers.
DVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.88% | ||
| PM (TTM) | 6.53% | ||
| GM | 32.8% |
OM growth 3Y-3.29%
OM growth 5Y0.19%
PM growth 3Y-5.27%
PM growth 5Y32.51%
GM growth 3Y0.68%
GM growth 5Y2.26%
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.
DVA has less shares outstanding than it did 1 year ago.
DVA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DVA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that DVA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DVA (1.73) is comparable to the rest of the industry.
DVA has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as DVA would need 6.75 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.75, DVA is doing good in the industry, outperforming 74.34% of the companies in the same industry.
A Debt/Equity ratio of 23.95 is on the high side and indicates that DVA has dependencies on debt financing.
DVA has a Debt to Equity ratio of 23.95. This is amonst the worse of the industry: DVA underperforms 85.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 23.95 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.5
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.37 indicates that DVA should not have too much problems paying its short term obligations.
DVA has a Current ratio (1.37) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that DVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, DVA perfoms like the industry average, outperforming 50.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.40% over the past year.
DVA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.76% yearly.
The Revenue has been growing slightly by 6.34% in the past year.
The Revenue has been growing slightly by 1.26% on average over the past years.
EPS 1Y (TTM)39.4%
EPS 3Y0.68%
EPS 5Y15.76%
EPS Q2Q%-4.58%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y1.67%
Revenue growth 5Y1.26%
Sales Q2Q%4.56%
3.2 Future
The Earnings Per Share is expected to grow by 15.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y32.94%
EPS Next 2Y24.01%
EPS Next 3Y22.52%
EPS Next 5Y15.61%
Revenue Next Year6.31%
Revenue Next 2Y4.93%
Revenue Next 3Y4.46%
Revenue Next 5Y4.59%
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
With a Price/Earnings ratio of 18.48, DVA is valued on the expensive side.
Based on the Price/Earnings ratio, DVA is valued a bit cheaper than the industry average as 75.22% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DVA to the average of the S&P500 Index (28.96), we can say DVA is valued slightly cheaper.
DVA is valuated correctly with a Price/Forward Earnings ratio of 14.42.
80.53% of the companies in the same industry are more expensive than DVA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. DVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 14.42 |
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 83.19% 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 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 8.33 |
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.
A more expensive valuation may be justified as DVA's earnings are expected to grow with 22.52% in the coming years.
PEG (NY)0.56
PEG (5Y)1.17
EPS Next 2Y24.01%
EPS Next 3Y22.52%
5. Dividend
5.1 Amount
No dividends for DVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DAVITA INC
NYSE:DVA (11/21/2024, 8:23:33 PM)
After market: 164.14 0 (0%)164.14
+2.74 (+1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 14.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.56
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 214.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.88% | ||
| PM (TTM) | 6.53% | ||
| GM | 32.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 23.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)39.4%
EPS 3Y0.68%
EPS 5Y
EPS Q2Q%
EPS Next Y32.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.34%
Revenue growth 3Y1.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y