DaVita (DVA) AI Stock Analysis

• Market Cap: $10.41B
• Dividend Yield: N/A
• Average Volume (3M): 772.95K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.53
• Revenue Growth: 5.11%
• EPS Growth: 14.28%
• Country: US
• Employees: 76,000
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): 2.00
• Shares Outstanding: 75,500,000
• 10 Day Avg. Volume: 732,371
• 30 Day Avg. Volume: 772,948
• PEG Ratio: -2.18
• Price to Book (P/B): -43.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.24
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 2.17
• 1Y Price Target: $158.75
• Price Target Upside: 15.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $150.00 ▲(8.77%Upside)

DaVita's overall stock score is influenced primarily by its strong financial performance, particularly robust cash flow, and strategic corporate events aimed at financial flexibility. However, high financial leverage poses a risk, and technical indicators suggest potential bearish trends. The balanced earnings call with both achievements and challenges further supports a moderate score.

Positive Factors

Financial Performance

Operating income for the first quarter was 5% better than expected, thanks to improved margins.

Future Outlook

The price target for DaVita's stock has been increased to $165, reflecting confidence in future performance.

Product Contribution

The transition of phosphate binders into the Medicare bundle has resulted in a higher benefit and is expected to contribute significantly to operating income.

Negative Factors

External Impacts

Severe flu season and winter storms led to a decline in treatments and negatively impacted the overall volumes.

Operational Challenges

Expectations of lower treatment volumes and lost admissions due to a cyber incident are impacting forecasts.

Volume Recovery

There is low visibility into volume recovery, which is necessary for long-term operating income growth.

DaVita Business Overview & Revenue Model

Company Description

DaVita Inc. is a leading healthcare company specializing in kidney care services, primarily focused on delivering dialysis treatments to patients with chronic kidney failure and end-stage renal disease. Operating across the United States and in select international markets, DaVita offers a comprehensive range of services including in-center hemodialysis, home dialysis, and integrated care management. The company is committed to improving the quality of life for patients through innovative technologies, personalized care plans, and a patient-centric approach.

How the Company Makes Money

DaVita Inc. generates revenue primarily through providing dialysis services to patients with chronic kidney failure and end-stage renal disease. The company earns money from various sources including reimbursements from government programs such as Medicare and Medicaid, as well as payments from private insurance providers and direct payments from patients. A significant portion of DaVita's revenue comes from government healthcare programs, given the high cost of dialysis treatment and the chronic nature of kidney disease. The company also benefits from partnerships with hospitals and physician groups, expanding its reach and enhancing service delivery. Additionally, DaVita invests in developing home dialysis programs and integrated care services, which contribute to its revenue by offering more flexible and comprehensive care solutions to patients.

DaVita Financial Statement Overview

Summary

DaVita demonstrates strong revenue growth and efficient cash flow management, which are its key strengths. However, the high leverage and negative equity present risks that could affect future financial flexibility and stability. Continued focus on profitability and debt management will be critical for sustaining growth and reducing financial risk.

Income Statement

DaVita shows consistent revenue growth with a steady increase in revenue from $11.6 billion in 2022 to $12.97 billion in TTM 2025. The gross profit margin remains healthy at approximately 32.5% for TTM 2025, although net profit margin has slightly decreased from 7.3% in 2024 to 6.6% in TTM 2025, indicating some pressure on profitability. EBIT and EBITDA margins are strong, indicating effective operational management.

Balance Sheet

DaVita's balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity in TTM 2025. This reflects a highly leveraged position, increasing financial risk. The equity ratio is negative, suggesting liabilities exceed assets, which could be concerning for long-term stability. However, the company maintains significant assets, suggesting potential resilience.

Cash Flow

The company's cash flow is robust with operating cash flow significantly exceeding net income, highlighting strong cash generation. Free cash flow has grown consistently, evidenced by a 19.9% increase from 2024 to TTM 2025, showcasing effective capital expenditure management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.97B	12.82B	12.14B	11.61B	11.62B	11.55B
	Gross Profit
4.21B	4.22B	3.82B	3.40B	3.65B	3.56B
	EBIT
2.05B	2.09B	1.60B	1.34B	1.80B	1.69B
	EBITDA
2.66B	2.72B	2.32B	2.05B	2.45B	2.31B
	Net Income Common Stockholders
859.61M	936.34M	691.53M	768.19M	978.45M	773.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
355.74M	846.00M	391.67M	321.78M	484.21M	345.06M
	Total Assets
17.43B	17.29B	16.89B	16.93B	17.12B	16.99B
	Total Debt
11.84B	12.07B	11.12B	11.82B	11.98B	11.19B
	Net Debt
11.50B	11.27B	10.74B	11.58B	11.51B	10.87B
	Total Liabilities
14.79B	15.19B	14.15B	14.70B	14.75B	14.09B
	Stockholders Equity
926.00M	121.12M	1.06B	712.33M	755.51M	1.38B
Cash Flow		Free Cash Flow
1.76B	1.47B	1.49B	961.14M	1.29B	1.30B
	Operating Cash Flow
2.34B	2.02B	2.06B	1.56B	1.93B	1.98B
	Investing Cash Flow
-718.36M	-771.43M	-771.80M	-630.35M	-784.73M	-825.37M
	Financing Cash Flow
-1.52B	-816.94M	-1.17B	-1.12B	-1.08B	-1.85B

DaVita Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.90
• 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 137.9 is below the 20-day moving average (MA) of 139.77, below the 50-day MA of 142.92, and below the 200-day MA of 153.53, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 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
FMS	77 Outperform	$16.85B	25.02	4.36%	2.00%	―	―
CHE	75 Outperform	$8.23B	27.40	26.11%	0.35%	8.52%	10.36%
THC	71 Outperform	$15.93B	11.34	38.12%	―	-1.79%	-41.85%
UHS	70 Outperform	$12.20B	10.64	18.35%	0.42%	9.73%	51.87%
EHC	68 Neutral	$12.25B	25.09	25.33%	0.54%	11.21%	30.38%
DVA	64 Neutral	$10.41B	13.65	260.92%	―	5.11%	14.28%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%

DaVita Corporate Events

DaVita Completes $1 Billion Senior Notes Offering

On May 23, 2025, DaVita Inc. completed a private offering of $1.0 billion in 6.750% Senior Notes due 2033. The company received approximately $986 million in net proceeds, which it plans to use primarily to repay $830 million in outstanding credit facility borrowings and cover associated costs, with the remainder allocated for general corporate purposes. The notes are unsecured senior obligations and come with specific covenants and redemption options, but they are not registered under the Securities Act and will not be listed on any securities exchange.

The most recent analyst rating on (DVA) stock is a Hold with a $145.00 price target. To see the full list of analyst forecasts on DaVita stock, see the DVA Stock Forecast page.

DaVita Upsizes Private Offering to $1 Billion

On May 20, 2025, DaVita Inc. announced the upsize and pricing of its private offering of 6.750% senior notes due 2033, increasing the aggregate principal amount from $750 million to $1 billion. The proceeds from this offering are intended to repay outstanding credit facility borrowings and cover related expenses, with any remaining funds used for general corporate purposes. This strategic financial move is expected to close on May 23, 2025, and aims to strengthen DaVita’s financial position and operational flexibility.

The most recent analyst rating on (DVA) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on DaVita stock, see the DVA Stock Forecast page.

DaVita Announces $750M Senior Notes Offering

On May 20, 2025, DaVita Inc. announced the initiation of a private offering of $750 million in senior notes due in 2033, with proceeds intended to repay existing credit facilities and cover associated costs, with any remaining funds allocated for general corporate purposes. This strategic financial move is designed to strengthen DaVita’s financial position, potentially impacting its operations and industry standing, while also reflecting its ongoing commitment to financial flexibility and growth.

The most recent analyst rating on (DVA) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on DaVita stock, see the DVA Stock Forecast page.