DaVita (DVA) AI Stock Analysis

• Market Cap: $7.72B
• Dividend Yield: N/A
• Average Volume (3M): 732.43K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.52
• Revenue Growth: 5.14%
• EPS Growth: 4.37%
• Country: US
• Employees: 76,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 3.40
• Shares Outstanding: 70,600,000
• 10 Day Avg. Volume: 812,013
• 30 Day Avg. Volume: 732,426
• 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: 2.84
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 8.07
• 1Y Price Target: $158.00
• Price Target Upside: 42.10% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $115.00 ▲(3.43% Upside)

The score is driven mainly by mixed fundamentals: strong free cash flow but pressured margins and a high-risk balance sheet with negative equity. Valuation is supportive (P/E 11.449) and earnings guidance is modestly positive, but technicals remain weak with the stock below key longer-term moving averages and a negative MACD.

Positive Factors

Strong Free Cash Flow

Sustained FCF growth provides durable internal funding for operations, strategic investments, and shareholder returns. Strong cash conversion supports deleveraging or opportunistic M&A, and buffers the business versus reimbursement or volume cyclicality over the next 2–6 months.

IKC Clinical Advantage & Profitability

IKC’s superior clinical outcomes (better vascular access, adherence, fewer hospitalizations) and first full-year profitability create a durable competitive advantage in value-based kidney care. Lower early costs and better clinical metrics support margin expansion and differentiated contracting with payers.

Revenue per Treatment Momentum

Sustained RPT growth demonstrates pricing power and improved commercial mix that can offset flat treatment volumes. Higher RPT is a durable revenue lever under reimbursement pressure, supporting operating income and cash generation even if treatment counts remain challenged.

Negative Factors

Weak Balance Sheet / Negative Equity

Negative equity and elevated leverage materially constrain financial flexibility, increasing refinancing and covenant risk. This capital structure limits ability to absorb shocks, fund growth initiatives, or pursue M&A without dilutive or expensive financing over the medium term.

Margin Compression

Significant margin erosion reduces sustainable profitability and the cushion for adverse reimbursement or cost shocks. If patient care costs and supply inflation persist, margins and cash flow could be pressured, challenging the company’s ability to maintain capital returns and invest in growth.

Treatment Volume Pressure / Elevated Mortality

Declining treatments driven by elevated mortality is a structural demand headwind that directly reduces core revenue. Management is not modeling mortality improvement in 2026, meaning near-term volume recovery is uncertain and revenue per treatment gains may be insufficient to fully offset lost volumes.

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 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

Cash generation is a strength (TTM free cash flow growth +30.5% and healthy cash conversion), but profitability is weakening (gross margin down to 23.81% TTM and net margin down to 5.80%). The biggest risk is balance-sheet quality, with negative stockholders’ equity and elevated leverage, which reduces financial resilience.

Income Statement

DaVita's income statement shows a stable revenue growth trend with a TTM growth rate of 1.19%. However, the gross profit margin has decreased from 32.91% in 2024 to 23.81% in TTM, indicating pressure on cost management. The net profit margin has also declined to 5.80% in TTM from 7.31% in 2024, reflecting reduced profitability. EBIT and EBITDA margins have similarly contracted, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity in TTM, leading to an undefined debt-to-equity ratio. This indicates high leverage and potential financial instability. The return on equity has turned negative, reflecting poor returns for shareholders. The equity ratio is also negative, highlighting a risky capital structure.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth at 30.5% in TTM, indicating improved cash generation. The operating cash flow to net income ratio remains healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has slightly decreased, pointing to potential challenges in maintaining cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.28B	12.82B	12.14B	11.61B	11.62B	11.55B
Gross Profit	4.21B	4.22B	3.82B	3.40B	3.65B	3.56B
EBITDA	2.71B	2.72B	2.32B	2.06B	2.48B	2.25B
Net Income	728.59M	936.34M	691.53M	560.40M	978.45M	773.64M
Balance Sheet
Total Assets	17.62B	17.29B	16.89B	16.93B	17.12B	16.99B
Cash, Cash Equivalents and Short-Term Investments	700.74M	846.00M	391.67M	321.78M	484.21M	345.06M
Total Debt	12.34B	12.07B	11.12B	11.82B	11.98B	11.19B
Total Liabilities	16.32B	15.19B	14.15B	14.70B	14.75B	14.09B
Stockholders Equity	-651.08M	121.12M	1.06B	712.33M	755.51M	1.38B
Cash Flow
Free Cash Flow	915.34M	1.47B	1.49B	961.14M	1.29B	1.30B
Operating Cash Flow	1.35B	2.02B	2.06B	1.56B	1.93B	1.98B
Investing Cash Flow	-491.82M	-771.43M	-771.80M	-630.35M	-784.73M	-825.37M
Financing Cash Flow	-960.26M	-816.94M	-1.17B	-1.12B	-1.08B	-1.85B

DaVita Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.19
• 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 Neutral. The current price of 111.19 is above the 20-day moving average (MA) of 108.35, below the 50-day MA of 113.73, and below the 200-day MA of 129.88, indicating a neutral trend. The MACD of -1.66 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DVA.

DaVita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	78 Outperform	$9.94B	30.55	16.98%	0.14%	18.61%	35.76%
HCA	75 Outperform	$111.42B	17.24	―	0.61%	6.82%	15.82%
THC	67 Neutral	$16.63B	12.89	34.51%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.01B	16.47	5.31%	3.29%	4.09%	13.17%
EHC	64 Neutral	$9.51B	17.87	24.94%	0.65%	11.13%	27.53%
DVA	57 Neutral	$7.72B	11.45	―	―	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.

The most recent analyst rating on (DVA) stock is a Hold with a $143.00 price target. To see the full list of analyst forecasts on DaVita stock, see the DVA Stock Forecast page.