DaVita (DVA) Is Up 5.3% After Expanding Share Buyback Authorization by $2 Billion Has The Bull Case Changed?

• On August 20, 2025, DaVita announced an expansion of its equity buyback plan, increasing the overall authorization by US$2.00 billion to a total of US$8.00 billion.
• This substantial boost in share repurchases typically signals management's confidence in the company's financial outlook and may enhance shareholder value over time.
• Let's examine how this expanded share buyback program could influence DaVita's investment narrative, especially regarding future earnings per share growth.

Find companies with promising cash flow potential yet trading below their fair value.

DaVita Investment Narrative Recap

To invest in DaVita, you need to believe in the company's ability to drive steady demand for dialysis services and improve earnings against persistent cost pressure and industry challenges. The expansion of the US$8.00 billion buyback plan may provide near-term support for earnings per share growth, but does not directly address the immediate headwind of structurally lower treatment volumes due to higher patient mortality and slower patient growth.

The most relevant recent announcement to this buyback is DaVita's August 2025 earnings report, which showed revenue growth but a year-over-year decline in net income. While the new buyback initiative could support per-share metrics, short-term performance is still most closely linked to trends in patient volumes and reimbursement rates.

In contrast, one major risk that investors should be aware of is the impact of persistently elevated patient mortality rates, which...

Read the full narrative on DaVita (it's free!)

DaVita's outlook calls for $15.0 billion in revenue and $970.4 million in earnings by 2028. This is based on a 4.4% annual revenue growth rate and a $134.1 million increase in earnings from the current level of $836.3 million.

Uncover how DaVita's forecasts yield a $153.50 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Three community fair value estimates for DaVita range from US$150 to US$316, signaling wide disagreement among Simply Wall St Community members. While many participants expect patient growth to recover, the ongoing drag from lower treatment volumes remains a factor you cannot ignore.

Explore 3 other fair value estimates on DaVita - why the stock might be worth just $150.00!

Build Your Own DaVita Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DaVita research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DaVita research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DaVita's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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