NYSE:DVA

Stock Analysis Report

Executive Summary

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease (ESRD).

Snowflake

Fundamentals

Good value with limited growth.


Similar Companies

Share Price & News

How has DaVita's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

DVA

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-16.1%

DVA

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: DVA underperformed the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: DVA underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

DVAIndustryMarket
7 Day3.6%5.8%1.8%
30 Day-6.2%2.5%-0.7%
90 Day3.2%-1.8%0.06%
1 Year-16.1%-16.1%-5.0%-6.5%9.7%7.3%
3 Year-5.3%-5.3%33.9%28.6%46.3%36.9%
5 Year-24.1%-24.1%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

How volatile is DaVita's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DaVita undervalued compared to its fair value and its price relative to the market?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DVA ($57.85) is trading below our estimate of fair value ($73.6)

Significantly Undervalued: DVA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DVA is good value based on its PE Ratio (17.6x) compared to the Healthcare industry average (20.4x).

PE vs Market: DVA is good value based on its PE Ratio (17.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: DVA is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: DVA is good value based on its PB Ratio (2.3x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is DaVita forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVA's forecast earnings growth (3.3% per year) is above the savings rate (2.7%).

Earnings vs Market: DVA's earnings (3.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: DVA's earnings are forecast to grow, but not significantly.

Revenue vs Market: DVA's revenue (2.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DVA's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DVA's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has DaVita performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DVA's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: DVA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DVA had negative earnings growth (-21.6%) over the past year, making it difficult to compare to the Healthcare industry average (5.3%).


Return on Equity

High ROE: DVA's Return on Equity (13.4%) is considered low.


Return on Assets

ROA vs Industry: DVA has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: DVA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is DaVita's financial position?


Financial Position Analysis

Short Term Liabilities: DVA's short term assets ($6.4B) exceeds its short term liabilities ($5.7B)

Long Term Liabilities: DVA's short term assets (6.4B) do not cover its long term liabilities (8.8B)


Debt to Equity History and Analysis

Debt Level: DVA's debt to equity ratio (165.2%) is considered high

Reducing Debt: DVA's debt to equity ratio has increased from 150.6% to 165.2% over the past 5 years.

Debt Coverage: DVA's debt is well covered by operating cash flow (22.4%).

Interest Coverage: DVA's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: DVA has a high level of physical assets or inventory.

Debt Coverage by Assets: DVA's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is DaVita's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DVA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DVA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DVA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of DaVita's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Javier Rodriguez (48yo)

0.3yrs

Tenure

US$7,906,598

Compensation

Mr. Javier J. Rodriguez has been Chief Executive Officer and Director of DaVita Inc. since June 1, 2019. Mr. Rodriguez has been the Chief Executive Officer of Dialysis & Related Lab Services Business and C ...


CEO Compensation Analysis

Compensation vs. Market: Javier has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Javier's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DVA's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

64yo

Average Age

Experienced Board: DVA's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Joel Ackerman (54yo)

    CFO & Treasurer

    • Tenure: 2.7yrs
    • Compensation: US$6.62m
  • Kent Thiry (63yo)

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: US$32.02m
  • Jim Hilger (57yo)

    Chief Accounting Officer

    • Tenure: 9.5yrs
    • Compensation: US$950.98k
  • Javier Rodriguez (48yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$7.91m
  • Bill Myers

    Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Jim Gustafson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Atul Mathur

    Executive Vice President of Global Operations

    • Tenure: 4.1yrs
  • Abdulkareem Alsuwaida

    Chief Medical Officer - Saudi Operations

    • Tenure: 5.3yrs
  • Kathleen Waters (51yo)

    Chief Legal Officer

    • Tenure: 3.4yrs
    • Compensation: US$5.26m
  • James Hearty (50yo)

    Chief Compliance Officer

    • Tenure: 1.6yrs

Board Members

  • John Nehra (70yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$344.09k
  • Peter Grauer (73yo)

    Lead Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$445.50k
  • Kent Thiry (63yo)

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: US$32.02m
  • William Roper (70yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: US$366.84k
  • Chuck Berg (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$373.00k
  • Barbara Desoer (66yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$384.59k
  • Paul Diaz (57yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$339.34k
  • Pamela Arway (65yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$418.09k
  • Javier Rodriguez (48yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$7.91m
  • Pascal Desroches (55yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$346.73k

Company Information

DaVita Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DaVita Inc.
  • Ticker: DVA
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$8.010b
  • Shares outstanding: 138.46m
  • Website: https://www.davita.com

Number of Employees


Location

  • DaVita Inc.
  • 2000 16th Street
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DVANYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1995
TRLDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995
0I7ELSE (London Stock Exchange)YesCommon StockGBUSDOct 1995
DVAI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.001BRBRLMay 2019

Biography

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease (ESRD). The company operates kidney dialysis centers and provides related lab ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:35
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.