DaVita (DVA) AI Stock Analysis

• Market Cap: $8.36B
• Dividend Yield: N/A
• Average Volume (3M): 920.31K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.51
• Revenue Growth: 5.14%
• EPS Growth: 4.37%
• Country: US
• Employees: 76,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.51
• Shares Outstanding: 70,600,000
• 10 Day Avg. Volume: 789,491
• 30 Day Avg. Volume: 920,314
• PEG Ratio: 0.30
• Price to Book (P/B): 104.94
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 8.67
• Enterprise Value/Market Cap: 2.83
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $136.50
• Price Target Upside: 18.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 10.57
• Revenue Forecast (FY): $13.52B

• Rating: 59 Neutral
• Price Target: $122.00 ▲(5.90% Upside)

DaVita's overall stock score is primarily influenced by its financial performance and technical analysis. The company's moderate revenue growth and strong cash flow are offset by significant challenges in profitability and financial stability. Technical indicators suggest bearish momentum, further impacting the score. Valuation is reasonable, but the lack of a dividend yield is a drawback. The earnings call provides a balanced view, with strategic investments highlighted but also noting operational challenges.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates DaVita's ability to efficiently convert revenue into cash, supporting operational needs and strategic investments.

Investment in Technology

Investments in technology and AI enhance patient care and operational efficiency, positioning DaVita for long-term cost savings and competitive advantage.

Strategic Partnerships

Partnerships expand DaVita's reach and improve care coordination, contributing to revenue stability and growth through enhanced reimbursement rates.

Negative Factors

High Leverage

High leverage and negative equity raise concerns about financial stability, potentially limiting DaVita's ability to invest in growth and manage economic downturns.

Declining Profit Margins

Declining profit margins indicate pressure on cost management, which can affect profitability and limit resources for reinvestment and growth.

Challenges with Integrated Kidney Care

Operational losses in Integrated Kidney Care highlight variability in revenue recognition, impacting DaVita's ability to stabilize and grow this segment.

DaVita Business Overview & Revenue Model

Company Description

DaVita Inc. is a leading provider of kidney care services in the United States, specializing in dialysis treatments for patients with chronic kidney disease. The company operates a network of dialysis centers and provides related services such as outpatient dialysis, home dialysis, and kidney disease education. DaVita also engages in kidney care management for patients with end-stage renal disease (ESRD) and offers a variety of ancillary services to support its patients' overall health.

How the Company Makes Money

DaVita generates revenue primarily through its dialysis services, which are reimbursed by Medicare, Medicaid, and commercial insurance providers. The majority of its revenue comes from providing in-center hemodialysis and peritoneal dialysis treatments to patients with kidney disease. Additionally, DaVita earns income from its integrated care services, where it manages the overall care of patients with chronic kidney disease. The company also benefits from strategic partnerships with healthcare providers and payers, allowing it to expand its reach and improve care coordination. These partnerships often enhance reimbursement rates and provide access to a larger patient base, contributing significantly to DaVita's earnings.

DaVita Financial Statement Overview

Summary

DaVita shows strong revenue growth and operational efficiency, but faces challenges with declining profit margins and high financial leverage. The cash flow position is stable, though recent declines in free cash flow growth warrant attention.

Income Statement

DaVita's income statement shows a consistent revenue growth trajectory, with a TTM growth rate of 1.49%. However, there is a decline in gross profit margin from 32.91% in 2024 to 24.05% in TTM. Net profit margin has also decreased slightly from 7.31% to 6.35% in the same period. Despite these declines, EBIT and EBITDA margins remain relatively stable, indicating operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative equity position in TTM, resulting in a debt-to-equity ratio of -33.02. This high leverage poses a risk, as evidenced by the negative return on equity of -25.95%. The equity ratio is also negative, indicating potential financial instability.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth of -26.76% in TTM, reflecting potential cash flow challenges. However, the operating cash flow to net income ratio remains healthy at 0.63, and the free cash flow to net income ratio is 0.69, indicating adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.32B	12.82B	12.14B	11.61B	11.62B	11.55B
Gross Profit	4.26B	4.22B	3.82B	3.40B	3.65B	3.56B
EBITDA	2.50B	2.72B	2.32B	2.06B	2.48B	2.25B
Net Income	771.91M	936.34M	691.53M	560.40M	978.45M	773.64M
Balance Sheet
Total Assets	17.74B	17.29B	16.89B	16.93B	17.12B	16.99B
Cash, Cash Equivalents and Short-Term Investments	736.48M	846.00M	391.67M	321.78M	484.21M	345.06M
Total Debt	14.88B	12.07B	11.12B	11.82B	11.98B	11.19B
Total Liabilities	16.22B	15.19B	14.15B	14.70B	14.75B	14.09B
Stockholders Equity	-571.87M	121.12M	1.06B	712.33M	755.51M	1.38B
Cash Flow
Free Cash Flow	1.29B	1.47B	1.49B	961.14M	1.29B	1.30B
Operating Cash Flow	1.89B	2.02B	2.06B	1.56B	1.93B	1.98B
Investing Cash Flow	-739.80M	-771.43M	-771.80M	-630.35M	-784.73M	-825.37M
Financing Cash Flow	-1.53B	-816.94M	-1.17B	-1.12B	-1.08B	-1.85B

DaVita Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVA, the sentiment is Negative. The current price of 115.2 is below the 20-day moving average (MA) of 118.71, below the 50-day MA of 121.67, and below the 200-day MA of 135.52, indicating a bearish trend. The MACD of -0.99 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 26.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DVA.

DaVita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	78 Outperform	$10.23B	31.42	16.98%	0.14%	18.61%	35.76%
THC	74 Outperform	$17.25B	13.46	34.51%	―	-0.56%	-53.50%
HCA	70 Neutral	$107.67B	18.23	―	0.62%	6.82%	15.82%
FMS	65 Neutral	$13.73B	17.13	5.31%	3.35%	4.09%	13.17%
EHC	64 Neutral	$10.95B	20.56	24.94%	0.65%	11.13%	27.53%
DVA	59 Neutral	$8.36B	11.96	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

DaVita Corporate Events

DaVita Amends Credit Agreement for $3.5 Billion Loan

On November 24, 2025, DaVita Inc. amended its Credit Agreement to establish new secured term loan and revolving credit facilities totaling up to $3.5 billion. This financial restructuring aims to refinance existing debt and support general corporate purposes, potentially enhancing DaVita’s financial flexibility and operational capabilities.