DaVita Inc. (DVA) stock analysis

P/E below its 5-year median

DaVita's P/E of 13.5 is below its own 5-year median of 14.7.

P/E below the industry

DaVita's P/E of 13.5 is below the Health Services median of 23.9.

EV/EBITDA above its 5-year median

DaVita's EV/EBITDA of 7.8 is above its 5-year median of 7.8.

P/S below the industry

DaVita's price-to-sales of 0.81 is below the Health Services median of 1.33 (book value is negative, so we use sales).

Trading below fair value

The share price of $183.50 is below our fair value estimate of $312.00.

Margin of safety over 20%

The price is 41.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 19.2% over the last twelve months, against a 5-year average of -0.7% a year.

Growing faster than the industry

Revenue grew 6.4% over the last twelve months; the Health Services median is 2.0%.

Guidance raised

DaVita raised its Current 2026 guidance Adjusted operating income outlook on May 5, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 18.1%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 0.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.5% over the last twelve months, against a 5-year average of 6.3%.

Net margin above the industry

DaVita's net margin of 6.5% is above the Health Services median of -1.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.4% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.41 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.71; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

DaVita has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.