DAVITA INC Stock Analysis, Valuation (NYSE:DVA)

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$72.07 $0.48 (0.66%) DVA stock closing price Feb 22, 2018 (Closing)
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DAVITA INC
Updated on : Feb 22, 2018
previous close
DVA 72.1 (0%)
S&P 500 2704 (0%)
Closing Price On: Feb 22, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Outpatient-Home care
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
12.5%
Sector Average:
-5.2%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.34B
Debt/Equity Ratio:
 1.91
Compared to the industry
Cash Flow
Operating cash flow:
$342.9M
Net Income:
$378M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DVA PS :
0.9
Industry PS :
5.8
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.3%
Return on Equity:
14.6%
Free Cash Flow Margin:
6.1%
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DAVITA INC Stock Analysis

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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 3.6/5

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?

  • DAVITA INC had a healthy average operating margin of 12.5% over the last 4 quarters.
  • LTM Net margins were good at 5.2% for DAVITA INC.
  • DVA stock is trading at an earnings multiple of 21 which is better than the industry average of 23.2.
  • The lower PS ratio 0.9 for DVA stock versus Medical-Outpatient-Home care industry average of 5.8 is a positive for the company.
  • DAVITA INC has an attractive ROIC (Return on Invested Capital) of 10.3%
  • The LTM ROE of 14.6% for DAVITA INC is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 6.1%.

Should you sell DVA stock?

  • With a debt/equity ratio of  1.91, DAVITA INC is highly leveraged in comparison to Medical 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.