DaVita Inc.DVANYSE
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Executive Summary

Latest Data: Dec 2025
HealthcareMedical - Care Facilities
$10.1BLarge Cap

A large-scale business, operating profitably valued in line with the market.

Key Investment Themes
Mature business (6% growth)

Business Narrative

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers.

HealthcareMedical - Care Facilities
Mature & Stable
high confidence
Revenue Mix
Single segment business

Company at a Glance

Revenue Growth
6%
Profit Margin
5%
Free Cash Flow
$1.3B
P/E Ratio
17.3x
+33% vs 5Y avg
ELEVATED

Business Performance

Business Scale
Revenue$13.6B
Net Income$747M
Profitability Quality
Gross Margin27%
Operating Margin15%
Net Margin5%
Growth Trajectory
Revenue Growth
6%
EPS Growth
-20%
FCF Growth
-11%

Key Highlights

Positive Signals

  • Conservative balance sheet with low debt levels

Watch Areas

  • Trading 33% above 5-year average valuation

Financial Health

Liquidity
Watch
Current Ratio1.29
1.0-2.0 = Adequate
Cash & Equivalents$758M
Leverage
Watch
Debt / Equity-23.12
<1.0 = Low leverage
Interest Coverage3.66x
2-5x = Adequate
Efficiency
Concern
Return on Equity-114.7%
<8% = Weak
Return on Capital10.6%
8-15% = Fair

Valuation Assessment

Market Cap
$10.1B
Large Cap
P/E (TTM)
17.3x
In-line
vs 5Y avg: 13.0x (+33%)
P/S (TTM)
0.7x
Discounted
vs 5Y avg: 0.8x (-11%)
EV/EBITDA
9.2x
Discounted
vs 5Y avg: 9.0x
(+2%)
P/E Historical Range (5Y)
Min: 12.2xAvg: 13.0xNow: 17.3xMax: 13.8x
P/S Historical Range (5Y)
Min: 0.6xAvg: 0.8xNow: 0.7xMax: 1.0x
EV/EBITDA Historical Range (5Y)
Min: 8.7xAvg: 9.0xNow: 9.2xMax: 9.5x

Valuation Corridor

CHEAP
FCF Yield
13.0%
vs Cost of Capital ~8.0% = Strong
P/E Corridor (5Y)17.3x
12.2xFair: 12.3x-13.7x13.8x
P/S Corridor (5Y)0.7x
0.6xFair: 0.6x-1.0x1.0x
EV/EBITDA Corridor (5Y)9.2x
8.7xFair: 8.7x-9.3x9.5x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricDec 21Dec 22Dec 23Dec 24Dec 25
Return on Equity
-
-
-
-
-
Return on Invested Capital
-
-
-
-
-
Gross Margin
31.4%
29.3%6.7%
31.5%7.4%
32.9%4.6%
27.0%17.9%
Operating Margin
15.5%
11.5%25.4%
13.2%14.5%
16.3%23.6%
14.7%9.7%
Net Margin
8.4%
4.8%42.7%
5.7%18.0%
7.3%28.3%
5.5%25.1%
Earnings Yield
-
-
-
-
-
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