DaVita (DVA)
Health Care · $11.4B market cap · SEC CIK 0000927066
ahead of 49% of the S&P 500 · #32 of 59 in Health Care
Next reports on Feb 1, 2027, after the close, with analysts expecting $4.30 in earnings per share.
52-week range $101.00 to $247.49. 28% below its 52-week high and 78% above its low.
The case for DVA
- Free cash flow of 11.5% of its market value a year: a lot of cash for the price.
- Earnings per share up 39.8%.
- Reasonably priced for its growth: 12.4× earnings, where 6% a year of growth would justify about 18×.
- Up 50.0% over the past year.
The case against
- Long-term debt of $10.2B would take 5 years of operating cash flow to repay.
- Owes more than it owns: shareholder equity is −$651M, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 83 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 46 |
| Momentumhow the price has behaved lately | 64 |
| Stabilityhow violently it moves, what it owes and what it pays you | 24 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +6.4% |
|---|---|
| Over 5 years | +3.4% a year |
| FY2025 revenue | $13.6B (+6%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.3B |
|---|---|
| Of revenue | 10% |
| Of profit | 175% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 32% |
|---|---|
| Operating margin | 15% |
| Net margin, FY24 → FY25 → now | 7.3% → 5.5% → 6.5% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $676M |
|---|---|
| Long-term debt | $10.2B |
| Net debt | $9.5B |
| Years to repay | 5.4 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 12.4× |
|---|---|
| Fair P/E for its growth | 18× |
| P/FCF | 8.7× |
| Forward P/E | 12.2× |
| EV / EBITDA | 7.7× |
At 12.4× earnings it trades below the 18× that 6% a year of growth would justify. At 8.7× free cash flow it trades well below that same mark.
The financials, five years deep
Pulled from DaVita's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $13.6B | $12.8B | $12.1B | $11.6B | $11.6B |
| Change on the year | +6% | +6% | +5% | 0% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $1.5B | $1.5B | $961M | $1.3B |
| Of revenue | 10% | 11% | 12% | 8% | 11% |
| Profit margins | |||||
| Operating margin | 15.0% | 16.3% | 13.2% | 11.5% | 15.5% |
| Net margin | 5.5% | 7.3% | 5.7% | 4.8% | 8.4% |
| Debt vs. cash | |||||
| Cash | $676M | $795M | $380M | $244M | $462M |
| Long-term debt | $10.2B | $9.2B | $8.3B | $8.7B | $8.7B |
| Net cash (debt) | −$9.5B | −$8.4B | −$7.9B | −$8.4B | −$8.3B |
What DaVita says it does
Unless otherwise indicated in this report "DaVita", "the Company" "we", "us", "our" and other similar terms refer to DaVita Inc. and its consolidated subsidiaries. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are made available free of charge through our website, located at http://www.davita.com , as soon as reasonably practicable after the reports are filed with or furnished to the Securities and Exchange Commission (SEC). The SEC also maintains a website at http://www.sec.gov where these reports and other information about us can be obtained. The contents of our website are not incorporated by reference into this report. Overview of DaVita Inc. DaVita is a leading healthcare provider focused on transforming care delivery to improve quality of life for…
Risk factors DVA lists in its 10-K
- Global health conditions and changing population or demographic trends
- Severe weather events or natural disasters
- We invest in strategic and operational initiatives to maintain our business and expand our capabilities..
- We are, and may in the future be, a party to various lawsuits, demands, claims,
- If the number or percentage of patients with higher-paying commercial insurance declines, it could have a material adverse effect on our business, results of operations, financial condition and cash flows
- If we are unable to negotiate and maintain contracts with private payors on competitive terms, it could have a material adverse effect on our business, results of operations, financial condition and cash flows
- Marietta Memorial Hospital Employee Health Benefit Plan, et al. v. DaVita Inc., et.al. (Marietta)
- We are subject to risks associated with our participation in government healthcare programs
- Medicare ESRD Prospective Payment System
- Medicaid Programs and Department of Veterans Affairs (VA)
- of operations, financial condition and cash flows
- If we are unable to compete successfully it could materially adversely affect our business, results of operations, financial condition and cash flows
- Clinical Technologies, Treatments or Therapies
- Our goals and disclosures related to ESG matters expose us to risks, including without limitation risks to our reputation and stock price
- We could be subject to adverse changes in tax laws, regulations and interpretations or challenges to our tax positions