DAVITA INC Stock Analysis, Valuation (NYSE:DVA)

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$72.44 $0.53 (0.73%) DVA stock closing price Jun 20, 2018 (Closing)

Investors can watch the Amigobulls DAVITA INC stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for DVA stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

DAVITA INC Stock Rating 3.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DVA stock analysis. DAVITA INC valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. DAVITA INC stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy DVA stock?

  • The TTM operating margin was good at 9.94 for DAVITA INC.
  • Net margins stood at a healthy 2.9% (average) for DAVITA INC in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.0287 times the net income.
  • The DAVITA INC stock currently trades at a price to earnings ratio of 19.6, compared to the sector average of 25. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.5, the price-to-sales ratio of 1 for DVA stock is attractive.
  • DAVITA INC's return on invested capital of 8 is good.
  • The LTM ROE of 7.8 for DAVITA INC is attractive.
  • The company has a healthy free cash flow margin of 5.2.

Should you sell DVA stock?

  • Revenue growth of 7.9 has been weak over the last 5 years.
  • With a debt/equity ratio of 1.98, DAVITA INC is highly leveraged in comparison to -sectordesc- peers.

Comments on this video and DAVITA INC stock

Investors can use Amigobulls DAVITA INC stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of DVA stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, DAVITA INC revenue growth and profit or net income are two main metrics which help in identifying whether DVA stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about DVA stock.