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DaVita
(NYSE:DVA)
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Rating:70Outperform
Price Target:
$242.00
▲(63.61% Upside)
Action:Upgraded
Date:06/09/26
The score reflects strong technical positioning and a constructive earnings update (Q1 beat plus raised/narrowed guidance), supported by solid margins and free cash flow. The key constraint is elevated leverage and negative equity, which heighten financial risk, while valuation is reasonable but lacks dividend support.
Positive Factors
Free Cash Flow Generation
Consistent, material free cash flow provides durable financial flexibility: it funds clinic operations, strategic tech investments, share repurchases and debt service without relying on equity issuance. Strong FCF limits operational vulnerability and supports execution of multi-quarter initiatives.
Negative Factors
High Leverage and Negative Equity
Elevated debt and a negative equity position materially constrain balance-sheet flexibility. This persistent capital structure risk amplifies refinancing and covenants sensitivity, reduces ability to absorb shocks, and places long‑term limits on strategic optionality and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent, material free cash flow provides durable financial flexibility: it funds clinic operations, strategic tech investments, share repurchases and debt service without relying on equity issuance. Strong FCF limits operational vulnerability and supports execution of multi-quarter initiatives.
Read all positive factors
DaVita Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income across different business areas, showing where the company is earning the most and identifying growth or risk areas.
Breaks down income across different business areas, showing where the company is earning the most and identifying growth or risk areas.
Data provided by:
The Fly
The FlyDaVita (DVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.28B
Dividend YieldN/A
Average Volume (3M)890.19K
Price to Earnings (P/E)21.9
Beta (1Y)0.49
Revenue Growth6.68%
EPS Growth2.79%
CountryUS
Employees76,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)10.15
Shares Outstanding64,200,000
10 Day Avg. Volume800,576
30 Day Avg. Volume890,193
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)-15.02
Price to Sales (P/S)0.72
P/FCF Ratio7.46
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit6.05
Enterprise Value/Ebitda9.64
Forecast
1Y Price Target
$211.00Price Target Upside42.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)14.7
Revenue Forecast (FY)$14.09B
DaVita Business Overview & Revenue Model
Company Description
DaVita Inc. specializes in delivering essential kidney dialysis treatments and comprehensive renal care to individuals grappling with chronic kidney failure. The company primarily operates an extensive network of outpatient dialysis centers, suppl...
How the Company Makes Money
DaVita primarily makes money by delivering dialysis treatments and related kidney-care services and then collecting reimbursement from government and commercial payors. The largest revenue stream is outpatient dialysis services provided in DaVita ...
DaVita Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call reflected a generally positive tone: the company beat Q1 expectations, raised and narrowed full-year adjusted operating income and EPS guidance, demonstrated productivity-led cost improvements, and highlighted strong IKC clinical and savings performance. Material investments in technology and AI were emphasized as strategic drivers of future clinical and operational outperformance. Offsetting items included near-term pressure from higher G&A (driven by technology spend), an IKC operating loss, modest treatment declines versus prior year, ACA enrollment/mix uncertainty that could pressure revenue per treatment later in the year, and unchanged free cash flow guidance. On balance, the positive beats, guidance raise, and structural investments outweighed the near-term headwinds.Positive Updates
Beat on Adjusted Operating Income and EPS
Q1 adjusted operating income of $482 million and adjusted EPS of $2.87, with adjusted OI about $50 million ahead of forecast (roughly half from operational outperformance and half timing).
Negative Updates
G&A Growth from Technology Investments
U.S. dialysis G&A increased ~$37 million year-over-year, a ~13% rise versus Q1 2025, driven by continued investment in technology and professional fees (management views investment as strategic but G&A is growing faster than revenue).
Read all updates
Q1-2026 Updates
Positive
Negative
Beat on Adjusted Operating Income and EPS
Q1 adjusted operating income of $482 million and adjusted EPS of $2.87, with adjusted OI about $50 million ahead of forecast (roughly half from operational outperformance and half timing).
Read all positive updates
Company Guidance
Management raised and narrowed 2026 financial guidance after a strong Q1: adjusted operating income guidance is now $2.15–$2.25 billion (roughly $40M higher at the midpoint) and adjusted EPS guidance is $14.10–$15.20 per share; Q1 results included $482M of adjusted operating income (about $50M ahead of forecast), $2.87 adjusted EPS and $140M of free cash flow. They raised full‑year treatment volume growth to +25–50 bps (implying +50–75 bps in treatments per normalized day), after Q1 treatments were down ~20 bps YoY while treatments per normalized day rose ~40 bps; revenue per treatment grew ~4% YoY in Q1 (company expects 1–2% for the year), patient care cost per treatment was roughly flat to Q4, IKC posted a $19M operating loss and international OI was $30M, leverage was 3.34x EBITDA, Q1 debt expense was $145M (expected to run similar quarterly), and the prior ~$40M ACA headwind remains under review as enrollment trends look slightly favorable.DaVita Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.84B | 13.64B | 12.82B | 12.14B | 11.61B | 11.62B |
| Gross Profit | 4.30B | 3.68B | 4.22B | 3.82B | 3.40B | 3.65B |
| EBITDA | 2.70B | 2.64B | 2.72B | 2.32B | 2.06B | 2.48B |
| Net Income | 781.42M | 746.80M | 936.34M | 691.53M | 560.40M | 978.45M |
Balance Sheet | ||||||
| Total Assets | 17.50B | 17.48B | 17.29B | 16.89B | 16.93B | 17.12B |
| Cash, Cash Equivalents and Short-Term Investments | 748.71M | 782.05M | 846.00M | 391.67M | 321.78M | 484.21M |
| Total Debt | 13.22B | 15.05B | 12.07B | 11.12B | 11.82B | 11.98B |
| Total Liabilities | 16.45B | 16.32B | 15.19B | 14.15B | 14.70B | 14.75B |
| Stockholders Equity | -755.50M | -651.08M | 121.12M | 1.06B | 712.33M | 755.51M |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.31B | 1.47B | 1.49B | 961.14M | 1.29B |
| Operating Cash Flow | 2.03B | 1.89B | 2.02B | 2.06B | 1.56B | 1.93B |
| Investing Cash Flow | -631.90M | -654.95M | -771.43M | -771.80M | -630.35M | -784.73M |
| Financing Cash Flow | -1.21B | -1.37B | -816.94M | -1.17B | -1.12B | -1.08B |
DaVita Technical Analysis
Positive
147.91
Price Trends
189.58
Positive
169.81
Positive
145.13
Positive
Market Momentum
8.19
Negative
78.31
Negative
92.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVA, the sentiment is Positive. The current price of 147.91 is below the 20-day moving average (MA) of 205.60, below the 50-day MA of 189.58, and above the 200-day MA of 145.13, indicating a bullish trend. The MACD of 8.19 indicates Negative momentum. The RSI at 78.31 is Negative, neither overbought nor oversold. The STOCH value of 92.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DVA.
DaVita Risk Analysis
DaVita disclosed 26 risk factors in its most recent earnings report. DaVita reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DaVita Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.03B | 16.55 | 25.35% | 0.65% | 10.05% | 23.59% | |
70 Outperform | $14.28B | 21.89 | -133.12% | ― | 6.68% | 2.79% | |
69 Neutral | $9.37B | 25.42 | 16.63% | 0.14% | 19.23% | 15.67% | |
68 Neutral | $16.11B | 9.57 | 40.55% | ― | 4.56% | 27.14% | |
66 Neutral | $12.00B | 12.07 | 7.16% | 3.29% | 7.24% | 67.43% | |
58 Neutral | $86.49B | 13.25 | -123.20% | 0.61% | 6.71% | 29.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DVA
DaVita
222.48
79.92
56.06%
FMS
Fresenius Medical Care
22.61
-4.94
-17.93%
HCA
HCA Healthcare
389.89
14.40
3.83%
EHC
Encompass Health
101.08
-17.18
-14.52%
THC
Tenet Healthcare
187.08
14.86
8.63%
ENSG
The Ensign Group
160.30
11.61
7.81%
DaVita Corporate Events
Private Placements and FinancingShareholder Meetings
DaVita Expands Term Loan Facility, Enhancing Capital Flexibility
Positive
Jun 8, 2026
On June 8, 2026, DaVita Inc. amended its existing credit agreement to add $500 million in incremental Tranche B-2 term loans maturing in May 2031, denominated in U.S. dollars and bearing interest at either a base rate or Term SOFR plus an applicab...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.