DaVita (DVA) AI Stock Analysis

• Market Cap: $8.40B
• Dividend Yield: N/A
• Average Volume (3M): 729.41K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.62
• 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: 629,086
• 30 Day Avg. Volume: 729,412
• 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: 2.82
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $143.50
• Price Target Upside: 20.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $124.00 ▲(4.18% Upside)

DaVita's overall stock score is primarily influenced by its financial performance and valuation. While the company shows strong cash flow and is undervalued, it faces significant challenges in profitability and financial stability. The technical analysis indicates bearish momentum, adding to the cautious outlook.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates DaVita's ability to sustain operations and invest in growth, enhancing long-term financial health.

Investment in Technology

Investments in technology and AI can enhance patient care and operational efficiency, providing a competitive edge and supporting future growth.

Clinical Research Contributions

Strong clinical research capabilities enhance DaVita's reputation and ability to innovate, potentially leading to new treatment options and revenue streams.

Negative Factors

High Leverage

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

Decline in Treatment Volume

A decline in treatment volume can impact revenue growth and profitability, posing a risk to DaVita's market position and financial performance.

Profitability Challenges

Decreasing profit margins indicate cost management issues, which could affect DaVita's ability to maintain profitability and invest in future growth.

DaVita Business Overview & Revenue Model

Company Description

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure. 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 to 16,000 patients in risk-based integrated care arrangements and 7,000 patients in other integrated care arrangements; vascular access services; clinical research programs; physician services; and comprehensive kidney care services. As of December 31, 2021, it provided dialysis and administrative services in the United States through a network of 2,815 outpatient dialysis centers serving approximately 203,100 patients; and operated 339 outpatient dialysis centers located in 10 countries outside of the United States serving approximately 39,900 patients. Further, the company provides acute inpatient dialysis services in approximately 850 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 incorporated in 1994 and is headquartered in Denver, Colorado.

How the Company Makes Money

DaVita generates revenue primarily through its dialysis services, which are reimbursed by government programs like Medicare and Medicaid, as well as private insurance providers. The company earns money from both in-center and home dialysis treatments, with the majority of its revenue coming from the treatment of patients with ESRD. Key revenue streams include patient care services, ancillary services, and management services provided to healthcare facilities. Additionally, DaVita has formed partnerships with healthcare providers and payers to enhance care coordination and improve patient outcomes, which can contribute to its earnings. The company's focus on operational efficiency and patient-centered care also plays a critical role in sustaining its financial performance.

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: 119.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 119.02 is below the 20-day moving average (MA) of 126.57, below the 50-day MA of 130.86, and below the 200-day MA of 142.65, indicating a bearish trend. The MACD of -2.02 indicates Positive momentum. The RSI at 30.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 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
UHS	―	$13.81B	10.31	19.97%	0.37%	10.21%	39.58%
FMS	―	$15.69B	21.87	4.72%	2.93%	1.11%	25.84%
THC	―	$18.33B	14.30	34.51%	―	-0.56%	-53.50%
CHE	―	$6.28B	22.80	24.11%	0.45%	6.45%	-4.77%
EHC	―	$11.47B	21.50	24.96%	0.55%	11.13%	27.60%
DVA	―	$8.40B	12.26	―	―	5.14%	4.37%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

DaVita Corporate Events

DaVita’s Earnings Call: Balanced Sentiment Amid Challenges

DaVita Healthcare’s recent earnings call presented a balanced sentiment, highlighting consistent financial performance and strategic investments in technology and clinical research. However, the company faces challenges such as a decline in treatment volumes and issues with integrated kidney care.

DaVita Inc. Reports Steady Q3 2025 Performance

DaVita Inc., a leading provider of kidney care services, operates in the healthcare sector with a focus on dialysis treatments. The company has a significant presence both in the United States and internationally, providing care to patients with chronic kidney disease.

DaVita Announces Strategic Initiative for Operational Efficiency

DaVita has announced a strategic initiative aimed at enhancing its operational efficiency and improving patient care. This move is expected to strengthen DaVita’s position in the healthcare industry by streamlining its processes and potentially leading to better outcomes for stakeholders.

The most recent analyst rating on (DVA) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on DaVita stock, see the DVA Stock Forecast page.

DaVita Healthcare’s Resilient Earnings Call Amid Challenges

DaVita Healthcare’s recent earnings call painted a mixed picture, showcasing strong financial performance and cost management despite facing challenges such as a cyber incident and elevated mortality rates. The company demonstrated resilience and strategic progress, although issues with treatment volumes and adherence to new pharmaceutical protocols remain.

DaVita Healthcare Reports Strong Q2 2025 Earnings

DaVita Healthcare, a leading provider of kidney care services, operates in the healthcare sector with a focus on delivering dialysis treatments across the globe. The company is recognized for its commitment to patient care and its extensive network of dialysis centers.