DaVita (DVA) AI Stock Analysis

• Market Cap: $9.15B
• Dividend Yield: N/A
• Average Volume (3M): 835.09K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.55
• Revenue Growth: 5.09%
• EPS Growth: 7.85%
• Country: US
• Employees: 76,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.95
• Shares Outstanding: 71,500,000
• 10 Day Avg. Volume: 762,963
• 30 Day Avg. Volume: 835,094
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.72
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 5.82
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $147.80
• Price Target Upside: 13.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $142.00 ▲(9.04% Upside)

DaVita's overall stock score reflects a balance of strong financial performance and reasonable valuation, tempered by technical challenges and operational risks highlighted in the earnings call. The company's strategic initiatives and reaffirmed guidance provide a positive outlook, but high financial leverage and declining treatment volumes remain concerns.

Positive Factors

Operational Efficiency Initiative

The strategic initiative to enhance operational efficiency is expected to strengthen DaVita's market position by streamlining processes and improving patient outcomes, which can lead to long-term competitive advantages in the healthcare sector.

Strong Cash Flow Management

Strong cash flow management and share repurchases indicate robust cash generation ability, providing financial flexibility for strategic investments and returning value to shareholders over the long term.

Reaffirmed Financial Guidance

Reaffirming financial guidance despite challenges demonstrates management's confidence in achieving long-term growth targets, reflecting strong business fundamentals and strategic planning.

Negative Factors

High Financial Leverage

High financial leverage and negative equity position pose risks to financial stability, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Declining Treatment Volumes

Declining treatment volumes can impact revenue growth and market share, challenging DaVita's ability to maintain its leadership position in the dialysis services industry over the long term.

Decreasing Profit Margins

Decreasing profit margins indicate pressure on operational efficiency and cost management, which could affect long-term profitability and competitiveness if not addressed.

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	13.16B	12.82B	12.14B	11.61B	11.62B	11.55B
Gross Profit	4.28B	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	836.27M	936.34M	691.53M	560.40M	978.45M	773.64M
Balance Sheet
Total Assets	17.49B	17.29B	16.89B	16.93B	17.12B	16.99B
Cash, Cash Equivalents and Short-Term Investments	739.43M	846.00M	391.67M	321.78M	484.21M	345.06M
Total Debt	12.82B	12.07B	11.12B	11.82B	11.98B	11.19B
Total Liabilities	15.94B	15.19B	14.15B	14.70B	14.75B	14.09B
Stockholders Equity	-369.63M	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	1.86B	2.02B	2.06B	1.56B	1.93B	1.98B
Investing Cash Flow	-623.35M	-771.43M	-771.80M	-630.35M	-784.73M	-825.37M
Financing Cash Flow	-951.63M	-816.94M	-1.17B	-1.12B	-1.08B	-1.85B

DaVita Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 130.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 130.23 is below the 20-day moving average (MA) of 135.40, below the 50-day MA of 137.73, and below the 200-day MA of 146.98, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 5.25 is Positive, 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	78 Outperform	11.92B	9.87	17.94%	0.43%	9.61%	39.65%
THC	75 Outperform	16.21B	12.18	39.58%	―	-1.09%	-43.10%
FMS	73 Outperform	14.85B	20.84	3.69%	3.09%	1.11%	25.84%
EHC	73 Outperform	12.52B	24.30	17.23%	0.54%	11.80%	30.02%
CHE	71 Outperform	6.66B	23.51	24.23%	0.46%	7.55%	-1.52%
DVA	61 Neutral	$9.15B	12.80	635.30%	―	5.09%	7.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

DaVita Corporate Events

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.

DaVita Amends Credit Agreement with $250M Loan

On July 17, 2025, DaVita Inc. entered into a Seventh Amendment to its Credit Agreement, which involves a repricing of its senior secured term loan facility and an incremental borrowing of $250 million. The proceeds from this borrowing were used to repay a portion of its outstanding senior secured term loans, potentially impacting the company’s financial flexibility and stakeholder interests.

DaVita Holds 2025 Annual Stockholders Meeting

On June 5, 2025, DaVita Inc. held its virtual 2025 Annual Meeting of Stockholders, where approximately 90% of its outstanding shares were represented. During the meeting, stockholders elected nine directors to the board, ratified KPMG LLP as the independent accounting firm for 2025, and approved the executive officer compensation on an advisory basis.