DaVita IncFind Ratings Reports
DAVITA INC'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 INC 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 ($mil)||3717.65||3434.62|
|Net Income ($mil)||53.38||170.48|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||1677.58||1875.88|
|Total Assets ($mil)||18691.63||18946.82|
|Total Debt ($mil)||9101.44||9209.85|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||28.15||28.78|
|Return on Assets||1.92||2.38|
|Return on Equity||7.59||8.78|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||206.9||215.47|
|Div / share||0.0||0.0|
|Book value / share||22.94||23.89|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1783575.0||946008.0|
HOLD. DAVITA INC's P/E ratio indicates a significant premium compared to an average of 19.91 for the Health Care Providers & Services industry and a significant premium compared to the S&P 500 average of 24.54. To use another comparison, its price-to-book ratio of 2.75 indicates valuation on par with the S&P 500 average of 2.72 and a discount versus the industry average of 3.02. 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 INC seems to be trading at a premium to investment alternatives within the industry.
|DVA 37.05||Peers 19.91||DVA 6.33||Peers 11.92|
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.
|DVA 15.14||Peers 15.13||DVA 0.18||Peers 0.81|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
DVA is trading at a premium to 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.
|DVA 2.75||Peers 3.02||DVA -17.88||Peers 28.04|
Average. 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 valuation on par with 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.
|DVA 0.91||Peers 0.75||DVA 7.93||Peers 14.24|
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