Davita Inc.

Health Care
Misc Health and Biotechnology Services
www.davita.com

Earnings Score
Safety Score

Market Cap $13.08B
PE 16
Debt $9.92B
Cash $1.16B
EV $21.84B
FCF $1.42B

Earnings

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Sales & Net Margins

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Earnings	$827.68M
EBIT	$1.92B
ROE	141%
ROA	11%
FCF	$1.42B
Equity	$586.66M
Growth Stability	26%
PE	15.8
PEG	-3.01
PB	22.29
P/FCF	9.24
P/S	1.03
Price/Cash	0.09
Debt/Equity	16.91
Debt/FCF	7.01
Net Margins	7%
Op. Margins	15%
Earnings CAGR	6%
Sales Growth YoY	5%
Sales Growth QoQ	2%
Sales CAGR	0%
FCF CAGR	4%
Equity CAGR	-21%
Earnings Stability	0.07
Earnings Growth YoY	-13%

Earnings Growth QoQ	-4%
Earnings CAGR 5Y	-5%
Sales CAGR 5Y	2%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	-18%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	2%
Equity CAGR 3Y	0%
Market Cap	$13.08B
Revenue	$12.67B
Assets	$17.50B
Total Debt	$9.92B
Cash	$1.16B
Shares Outstanding	82.62M
EV	21.84B
Earnings Score	7%
Safety Score	33%
Working Capital	1.09B
Current Ratio	1.37
Shares Growth 3y	-4%
Equity Growth QoQ	-31%
Equity Growth YoY	-57%

Assets & ROA

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Stockholders Equity & ROE

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DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,100 facilities worldwide, mostly in the U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives approximately 69% of U.S. sales at government ( primarily Medicare) reimbursement rates, with the remaining 31% coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.

SEC Filings

Direct access to Davita Inc. (DVA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Davita Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Davita Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 7%

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Davita Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Davita Inc..

Years

Calculation mode

= $18B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.4B	$1.5B	$1.5B	$1.6B	$1.6B	$1.7B	$1.8B	$1.8B	$1.9B	$2B	$2.1B	$21B
DCF		$1.3B	$1.3B	$1.2B	$1.1B	$1.1B	$999M	$943M	$890M	$840M	$792M	$7.9B
Value	$18B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	6%	2%	8%	6%	1%	7%	7%	8%	5%	6%	7%
ROA	-	6%	10%	10%	8%	9%	10%	11%	8%	9%	11%
ROE	-	5%	18%	14%	4%	35%	49%	105%	64%	56%	141%

Net Margins (7.11%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	11.02	8.25	9.56	15.4	6.37	6.39	7.09	9.57	5.75	7.01
Debt over Equity	1.61	1.84	1.93	1.96	3.09	3.58	5.32	9.77	10.5	6.89	16.91
Growth Stability	-	-	-	100%	26%	100%	100%	100%	66%	90%	26%

Bad Debt/FCF ratio (7.01)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (16.91)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (26%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	8%	-22%	2%	5%	-0%	1%	1%	-0%	5%	2%
Earnings YoY growth	-	-63%	226%	-25%	-76%	409%	-5%	26%	-43%	23%	-5%
Equity YoY growth	-	-5%	-5%	1%	-20%	-41%	-32%	-40%	-6%	42%	-18%
FCF YoY growth	-	4%	34%	-12%	-22%	66%	-0%	-1%	-25%	55%	-3%