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 Analysis

Solid track record with mediocre balance sheet.


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

Stable Share Price: DVA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

DVA

-14.3%

US Healthcare

-11.2%

US Market


1 Year Return

36.1%

DVA

1.0%

US Healthcare

4.1%

US Market

Return vs Industry: DVA exceeded the US Healthcare industry which returned 1.6% over the past year.

Return vs Market: DVA exceeded the US Market which returned 5.2% over the past year.


Shareholder returns

DVAIndustryMarket
7 Day-7.7%-14.3%-11.2%
30 Day-6.1%-8.8%-9.5%
90 Day8.2%-8.5%-5.4%
1 Year36.1%36.1%2.3%1.0%6.2%4.1%
3 Year10.9%10.9%25.6%20.4%30.3%21.9%
5 Year-0.01%-0.01%38.0%29.4%55.0%38.0%

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?

16.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DVA ($79.23) is trading above our estimate of fair value ($73.96)

Significantly Below Fair Value: DVA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DVA is good value based on its PE Ratio (17.2x) compared to the Healthcare industry average (27.8x).

PE vs Market: DVA is poor value based on its PE Ratio (17.2x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: DVA is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: DVA is overvalued based on its PB Ratio (4.7x) compared to the US Healthcare industry average (2.9x).


Next Steps

Future Growth

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

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVA's forecast earnings growth (4.5% per year) is above the savings rate (1.7%).

Earnings vs Market: DVA's earnings (4.5% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: DVA's revenue (2.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DVA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DVA's Return on Equity is forecast to be high in 3 years time (33.5%)


Next Steps

Past Performance

How has DaVita performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVA has high quality earnings.

Growing Profit Margin: DVA's current net profit margins (6.2%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: DVA's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: DVA's earnings growth over the past year (14.4%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: DVA earnings growth over the past year (14.4%) exceeded the Healthcare industry 8.3%.


Return on Equity

High ROE: Whilst DVA's Return on Equity (26.17%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DaVita's financial position?


Financial Position Analysis

Short Term Liabilities: DVA's short term assets ($3.7B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: DVA's short term assets ($3.7B) do not cover its long term liabilities ($11.4B).


Debt to Equity History and Analysis

Debt Level: DVA's debt to equity ratio (224%) is considered high.

Reducing Debt: DVA's debt to equity ratio has increased from 132.5% to 224% over the past 5 years.

Debt Coverage: DVA's debt is well covered by operating cash flow (31.8%).

Interest Coverage: DVA's interest payments on its debt are well covered by EBIT (4x 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 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Javier Rodriguez (48yo)

0.7yrs

Tenure

US$7,906,598

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Javier's total compensation ($USD7.91M) is about average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kent Thiry
Executive Chairman4.7yrsUS$32.02m0.54% $53.3m
Javier Rodriguez
CEO & Executive Director0.7yrsUS$7.91m0.10% $10.1m
Joel Ackerman
CFO & Treasurer2.9yrsUS$6.62m0.0042% $418.9k
Kathleen Waters
Chief Legal Officer3.8yrsUS$5.26m0.010% $1.0m
LeAnne Zumwalt
Group Vice President of Purchasing & Public Affairs8.6yrsUS$1.79m0.0042% $420.9k
James Hilger
Chief Accounting Officer9.8yrsUS$950.98k0.015% $1.5m
Jim Gustafson
Vice President of Investor Relations0yrsno datano data
James Hearty
Chief Compliance Officer1.9yrsno data0.0017% $169.2k
Bill Myers
Vice President of Marketing & Communications0yrsno datano data
Cynthia Baxter
Interim Chief People Officer0yrsno datano data

2.9yrs

Average Tenure

55.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Kent Thiry
Executive Chairman4.7yrsUS$32.02m0.54% $53.3m
Javier Rodriguez
CEO & Executive Director0.7yrsUS$7.91m0.10% $10.1m
John Nehra
Independent Director19.3yrsUS$344.09k0.075% $7.5m
Peter Grauer
Lead Independent Director17.1yrsUS$445.50k0.054% $5.3m
William Roper
Independent Director18.8yrsUS$366.84k0.012% $1.2m
Charles Berg
Director12.9yrsUS$373.00k0.013% $1.3m
Barbara Desoer
Independent Director4.3yrsUS$384.59k0.0060% $593.1k
Paul Diaz
Independent Director12.6yrsUS$339.34k0.012% $1.2m
Pamela Arway
Independent Director10.8yrsUS$418.09k0.015% $1.5m
Pascal Desroches
Independent Director3.1yrsUS$346.73k0.0046% $459.7k

11.7yrs

Average Tenure

64yo

Average Age

Experienced Board: DVA's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$9.951b
  • Shares outstanding: 125.60m
  • 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
DVA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 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 services in outpatient dialysis centers. It also provides outpatient, hospital inpatient, and home-based hemodialysis services; owns clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company provides disease management services; vascular access services; clinical research programs; physician services; and comprehensive care services. As of December 31, 2018, it provided dialysis and administrative services in the United States through a network of 2,664 outpatient dialysis centers serving approximately 202,700 patients; and operated 241 outpatient dialysis centers located in 9 countries outside of the United States serving approximately 25,000 patients. Further, the company provides acute inpatient dialysis services in approximately 900 hospitals and related laboratory services in the United States. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was founded in 1994 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 00:50
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.