DaVita Inc DVA

Morningstar Rating
$178.69 +2.34 (1.33%)
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Company Report

DaVita's Profit Growth Prospects Boosted by Share Repurchases

After selling DaVita Medical Group in 2019, DaVita focuses on providing services to end-stage renal disease, or ESRD, patients primarily in the United States, although its international footprint is expanding organically and through acquisitions. Over several decades, DaVita has built one of the largest networks of dialysis clinics in the US, and although covid-related mortality and labor pressures cut into its profits in recent years, we see brighter days ahead for the firm, despite long-term potential challenges emerging related to the expansion of obesity drugs.

Price vs Fair Value

DVA is trading at a LOCK|!$pJ$M premium.
Price
$176.35
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Despite recent covid mortality challenges and obesity drug expansion, the ESRD patient population may grow at a healthy rate in the US and around the globe in the long run, which should benefit DaVita.

Bears

Potential US healthcare policy changes could reduce industry profitability if insurance coverage shifts away from employer-based plans or if Medicare reimbursement rates don't increase substantially.

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Trading Information

Previous Close Price
$176.35
Day Range
$176.27–180.00
52-Week Range
$101.00–247.49
Bid/Ask
$174.25 / $182.33
Shares Outstanding
63.80M
Market Cap
$11.40B
Volume/Avg
451,952 / 797,988

Key Statistics

Price/Earnings (Normalized)
13.75
Price/Sales
0.88
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
13.86%

Company Profile

DaVita is one of the largest providers of dialysis services in the United States, boasting a market share of about 35%. The firm operates over 3,200 facilities worldwide, mostly in the US, and treats about 300,000 patients annually. Government payers dominate US dialysis reimbursement. DaVita receives about two-thirds of US sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. While commercial insurers represent only about 10% of US patients treated, they represent nearly all of the profits generated by DaVita in the US dialysis business.
Sector
Healthcare
Industry
Medical Care Facilities
Stock Style Box
Small Core
Total Number of Employees
78,000

Competitors

Valuation

Metric
DVA
FMS
THC
Price/Earnings (Normalized)
13.758.9613.13
Price/Book Value
—0.834.39
Price/Sales
0.880.550.98
Price/Cash Flow
5.434.045.16
Price/Earnings
DVA
FMS
THC

Financial Strength

Metric
DVA
FMS
THC
Quick Ratio
1.330.681.22
Current Ratio
1.471.071.41
Interest Coverage
3.474.765.71
Quick Ratio
DVA
FMS
THC

Profitability

Metric
DVA
FMS
THC
Return on Assets (Normalized)
7.71%4.50%5.60%
Return on Equity (Normalized)
—10.75%39.08%
Return on Invested Capital (Normalized)
12.79%6.66%10.73%
Return on Assets
DVA
FMS
THC

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