Fundamental analysis: DaVita Inc. (DVA)

Awarener score: 6.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Superb) and growth (Very poor), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been shrinking at a fast pace. It's been weak when measured against peer companies.
DaVita Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 7.0

DVA profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly worse than rival companies.
Business profit on sales tends to be excellent. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
Total net profit tends to be good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 4.9

DaVita Inc. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be lacking compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
In the previous years, growth trend on total net profit has been excellent, and more than average in relation to peer companies.
Earnings per share have grown at an extremely fast rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 5.0

DVA had to pay some income taxes in relation to profits made in the past years. It's been slightly better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

DaVita Inc. usually gets very good returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 4.0

DVA usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands more than average in relation to rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a weak position compared to rivals.
The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 4.2

DaVita Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains mediocre against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's close to average when compared to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks last-in-rank when measured against peers.
Normally has approximately only a couple of weekly sales worth in inventory. It comes up as rather normal in relation to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be worse than most peers.
On average pays suppliers before a month since the purchase. It ranks similar to industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly better than rival firms.
Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 5.2

DaVita Inc. looks very expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands slightly worse than similar companies.
In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still below average when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks more than average in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 5.6

Company at a glance: DaVita Inc. (DVA)

Sector, industry: Healthcare, Medical Care Facilities

Market Cap: 7.09 billions

Revenues TTM: 11.61 billions

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.