DaVita Inc. Fundamental Analysis (NYSE: DVA)
DaVita Inc. (NYSE: DVA) shows weak financial fundamentals with a PE ratio of 23.69, profit margin of 5.65%, and ROE of -1.33%. The company generates $13.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 110.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze DVA's fundamental strength across five key dimensions:
Efficiency Score
WeakDVA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDVA trades at attractive valuation levels.
Growth Score
ModerateDVA shows steady but slowing expansion.
Financial Health Score
ExcellentDVA maintains a strong and stable balance sheet.
Profitability Score
WeakDVA struggles to sustain strong margins.
Key Financial Metrics
Is DVA Expensive or Cheap?
P/E Ratio
DVA trades at 23.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DVA's PEG of -12.26 indicates potential undervaluation.
Price to Book
The market values DaVita Inc. at -21.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.09 times EBITDA. This is generally considered low.
How Well Does DVA Make Money?
Net Profit Margin
For every $100 in sales, DaVita Inc. keeps $5.65 as profit after all expenses.
Operating Margin
Core operations generate 15.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.33 in profit for every $100 of shareholder equity.
ROA
DaVita Inc. generates $4.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DaVita Inc. produces operating cash flow of $1.93B, showing steady but balanced cash generation.
Free Cash Flow
DaVita Inc. generates strong free cash flow of $1.42B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.15 in free cash annually.
FCF Yield
DVA converts 9.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
-21.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-17.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.33
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How DVA Stacks Against Its Sector Peers
| Metric | DVA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.69 | 29.58 | Better (Cheaper) |
| ROE | -133.12% | 490.00% | Weak |
| Net Margin | 5.65% | -11578.00% (disorted) | Weak |
| Debt/Equity | -17.50 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 5.19 | Neutral |
| ROA | 4.47% | -131.00% (disorted) | Weak |
DVA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DaVita Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation