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DaVita HealthCare Partners Inc
DVA : NYSE : Health Care
$63.90 -1.55 | -2.37%
Today's Range: 63.65 - 65.34
Avg. Daily Volume: 1,552,200
02/05/16 - 4:02 PM ET

Financial Analysis


DAVITA HEALTHCARE PARTNERS's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. DAVITA HEALTHCARE PARTNERS has strong liquidity. Currently, the Quick Ratio is 1.72 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)3525.673251.82
EBITDA ($mil)668.65598.51
EBIT ($mil)506.59449.31
Net Income ($mil)215.87184.12


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)1970.271669.16
Total Assets ($mil)18894.8318101.42
Total Debt ($mil)9196.718502.43
Equity ($mil)4990.354975.04


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin29.0628.45
EBITDA Margin18.9618.4
Operating Margin14.3713.82
Sales Turnover0.720.69
Return on Assets2.564.01
Return on Equity9.6914.62
Debt Q3 FY15 Q3 FY14
Current Ratio1.971.61
Debt/Capital0.650.63
Interest Expense106.13101.83
Interest Coverage4.774.41


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)211.01214.88
Div / share0.00.0
EPS1.00.85
Book value / share23.6523.15
Institutional Own % n/a n/a
Avg Daily Volume1519227.01124596.0

Valuation


BUY. DAVITA HEALTHCARE PARTNERS's P/E ratio indicates a premium compared to an average of 20.25 for the Health Care Providers & Services industry and a premium compared to the S&P 500 average of 20.88. To use another comparison, its price-to-book ratio of 2.73 indicates valuation on par with the S&P 500 average of 2.48 and a discount versus the industry average of 3.57. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. The valuation analysis reveals that, DAVITA HEALTHCARE PARTNERS seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DVA 29.03 Peers 20.25   DVA 12.99 Peers 11.80

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DVA is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DVA is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DVA 15.84 Peers 15.80   DVA 2.20 Peers 1.08

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DVA is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DVA trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DVA 2.73 Peers 3.57   DVA -34.13 Peers 35.38

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DVA is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DVA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DVA 1.00 Peers 0.73   DVA 8.34 Peers 14.99

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DVA is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DVA significantly trails its peers on the basis of sales growth

 

 

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