DaVita HealthCare Partners Inc

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DVA : NYSE : Health Care
$63.68 | %
Today's Range: 63.30 - 64.41
Avg. Daily Volume: 1,292,100
08/26/16 - 4:02 PM ET

Financial Analysis


DAVITA HEALTHCARE PARTNERS's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. DAVITA HEALTHCARE PARTNERS has strong liquidity. Currently, the Quick Ratio is 1.55 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 7.78% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)3717.653434.62
EBITDA ($mil)653.23638.42
EBIT ($mil)472.85479.58
Net Income ($mil)53.38170.48


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1677.581875.88
Total Assets ($mil)18691.6318946.82
Total Debt ($mil)9101.449209.85
Equity ($mil)4746.055146.85


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin28.1528.78
EBITDA Margin17.5718.58
Operating Margin12.7213.96
Sales Turnover0.770.7
Return on Assets1.922.38
Return on Equity7.598.78
Debt Q2 FY16 Q2 FY15
Current Ratio1.72.05
Debt/Capital0.660.64
Interest Expense106.12106.46
Interest Coverage4.464.5


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)206.9215.47
Div / share0.00.0
EPS0.260.78
Book value / share22.9423.89
Institutional Own % n/a n/a
Avg Daily Volume1264277.01035054.0

Valuation


HOLD. DAVITA HEALTHCARE PARTNERS's P/E ratio indicates a significant premium compared to an average of 20.56 for the Health Care Providers & Services industry and a significant premium compared to the S&P 500 average of 25.17. To use another comparison, its price-to-book ratio of 2.81 indicates valuation on par with the S&P 500 average of 2.82 and a discount versus the industry average of 3.19. 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 37.95 Peers 20.56   DVA 6.49 Peers 12.53

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.

 

Discount. 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 significant discount 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 15.45 Peers 15.76   DVA 0.19 Peers 0.84

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DVA 2.81 Peers 3.19   DVA -17.88 Peers 27.01

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 0.93 Peers 0.76   DVA 7.93 Peers 14.17

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 premium to its industry on this measurement.

 

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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