DaVita (DVA) AI Stock Analysis

• Market Cap: $9.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.49
• 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: 66,800,000
• 10 Day Avg. Volume: 973,457
• 30 Day Avg. Volume: 1,266,832
• PEG Ratio: -1.11
• Price to Book (P/B): -15.02
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 7.46
• Enterprise Value/Market Cap: 2.47
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 9.24
• 1Y Price Target: $162.50
• Price Target Upside: 7.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $151.00 ▲(0.18% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is held back primarily by balance-sheet risk (very high debt and negative equity), despite resilient operating performance and strong free cash flow. Earnings call guidance and IKC progress are supportive but tempered by volume/mortality, payer, cyber, and cost headwinds. Technically, the uptrend is strong, but indicators show overextended momentum, and valuation appears reasonable based on the P/E provided.

Positive Factors

Free Cash Flow Strength

Sustained free cash flow (~$1.0–1.31B range) provides durable internal funding for operations, capex, and capital returns. Over 2–6 months this supports liquidity and the ability to service debt, fund IKC/home-care investments, and maintain disciplined capital allocation despite cyclical pressures.

Recurring Revenue & Operating Margins

A predictable, recurring dialysis revenue base with steady top-line growth and mid-teens EBIT margins underpins resilient cash generation. This structural margin profile supports long-term reinvestment in clinical programs and helps absorb payer or cost headwinds over the medium term.

IKC Clinical Outcomes and Profitability

IKC's profitability and superior clinical outcomes validate a value-based care pathway that lowers hospitalizations and early costs. Structurally, this improves patient outcomes, reduces acute-cost exposure, and creates a scalable, higher-margin growth vector supporting durable margin expansion.

Negative Factors

Leverage and Negative Equity

Very high debt and negative equity materially weaken the capital structure, constraining refinancing flexibility and raising interest-service and covenant risks. This structural leverage increases vulnerability to rate or operational shocks and limits strategic optionality over the medium term.

Treatment Volume Pressure / Mortality

Persistently lower treatment volumes driven by elevated mortality reduce utilization and recurring revenue. Without durable clinical or access improvements, this structural headwind can compress revenue and margin leverage, limiting sustainable top-line growth over the next several quarters.

Payer/Policy Revenue Headwinds

The phased expiration of premium tax credits creates a multi-year payer-driven revenue shortfall and uncertainty around patient premium payment behavior. This structural reimbursement risk can persistently pressure RPT, collections, and near-term revenue growth absent offsetting rate or mix improvements.

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

Solid operating performance and cash generation (mid-teens EBIT margins and ~$1.31B 2025 free cash flow) are offset by a highly risky capital structure: very high debt (~$15.0B) and negative equity in 2025 materially reduce financial flexibility and raise downside sensitivity.

Income Statement

Revenue has been steadily growing (from ~$11.6B in 2020 to ~$13.6B in 2025), and operating profitability remains solid with EBIT margins generally in the mid-teens. However, net profitability is more volatile and sits at a modest level (about 5.5% in 2025 vs ~7.3% in 2024 and ~8.4% in 2021), indicating that below-the-line items and/or costs outside core operations meaningfully pressure earnings at times.

Balance Sheet

Leverage is the clear weakness: total debt is very high (rising to ~$15.0B in 2025), while equity has deteriorated to negative in 2025, which drives an unfavorable capital structure and limits balance-sheet flexibility. The shift from positive equity in prior years to negative equity increases financial risk, even though total assets have remained relatively stable in the ~$16.9B–$17.5B range.

Cash Flow

Cash generation is a relative strength, with operating cash flow consistently around ~$1.6B–$2.1B and free cash flow generally healthy (about ~$1.31B in 2025). That said, cash conversion is not consistently strong versus accounting earnings (free cash flow running below net income in recent years), and 2025 shows weaker coverage of debt by operating cash flow than earlier periods, which matters given the elevated leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.64B	12.82B	12.14B	11.61B	11.62B
Gross Profit	3.68B	4.22B	3.82B	3.40B	3.65B
EBITDA	2.64B	2.72B	2.32B	2.06B	2.48B
Net Income	746.80M	936.34M	691.53M	560.40M	978.45M
Balance Sheet
Total Assets	17.48B	17.29B	16.89B	16.93B	17.12B
Cash, Cash Equivalents and Short-Term Investments	782.05M	846.00M	391.67M	321.78M	484.21M
Total Debt	15.05B	12.07B	11.12B	11.82B	11.98B
Total Liabilities	16.32B	15.19B	14.15B	14.70B	14.75B
Stockholders Equity	-651.08M	121.12M	1.06B	712.33M	755.51M
Cash Flow
Free Cash Flow	1.31B	1.47B	1.49B	961.14M	1.29B
Operating Cash Flow	1.89B	2.02B	2.06B	1.56B	1.93B
Investing Cash Flow	-654.95M	-771.43M	-771.80M	-630.35M	-784.73M
Financing Cash Flow	-1.37B	-816.94M	-1.17B	-1.12B	-1.08B

DaVita Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 150.73 is above the 20-day moving average (MA) of 131.90, above the 50-day MA of 120.60, and above the 200-day MA of 130.22, indicating a bullish trend. The MACD of 9.88 indicates Negative momentum. The RSI at 71.50 is Negative, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DVA.

DaVita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCA	75 Outperform	$119.64B	18.89	―	0.61%	6.82%	15.82%
ENSG	74 Outperform	$12.20B	35.94	16.91%	0.14%	18.61%	35.76%
EHC	73 Outperform	$10.98B	19.69	25.13%	0.65%	11.13%	27.53%
THC	69 Neutral	$20.15B	14.72	33.54%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.80B	17.42	5.31%	3.29%	4.09%	13.17%
DVA	63 Neutral	$9.87B	15.42	―	―	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.