DVA : NYSE : Health Care
$59.28 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1394900.0
09/19/17 - 4:02 PM ET

Financial Analysis

DAVITA INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased 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 INC has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.12% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)3877.483717.65
EBITDA ($mil)640.77653.23
EBIT ($mil)440.73472.85
Net Income ($mil)127.053.38

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)923.431677.58
Total Assets ($mil)19341.7818691.63
Total Debt ($mil)9093.149101.44
Equity ($mil)5084.314746.05

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin26.2428.15
EBITDA Margin16.5217.57
Operating Margin11.3712.72
Sales Turnover0.780.77
Return on Assets6.741.92
Return on Equity25.647.59
Debt Q2 FY17 Q2 FY16
Current Ratio1.451.7
Interest Expense112.19106.12
Interest Coverage3.934.46

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)191.2206.9
Div / share0.00.0
Book value / share26.5922.94
Institutional Own % n/a n/a
Avg Daily Volume1387401.01343773.0


HOLD. DAVITA INC's P/E ratio indicates a significant discount compared to an average of 23.80 for the Health Care Providers & Services industry and a significant discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2.25 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 3.33. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DAVITA INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DVA 9.19 Peers 23.80   DVA 5.52 Peers 11.90

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DVA is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DVA 15.71 Peers 16.92   DVA NM Peers 0.71

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DVA 2.25 Peers 3.33   DVA 282.35 Peers 20.55

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 significant discount to its peers.


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

DVA is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DVA 0.76 Peers 0.92   DVA 4.61 Peers 8.42

Discount. 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 discount 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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