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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
77.5%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, DAVITA INC. (DVA) receives a "Hold" rating with a composite score of 50.4/100, ranked #322 out of 4446 stocks. Key factor scores: Quality 50/100, Value 79/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
DAVITA INC. (DVA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does DAVITA INC. Do?
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. It also provides outpatient, hospital inpatient, and home-based hemodialysis services; owns clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company provides disease management services to 16,000 patients in risk-based integrated care arrangements and 7,000 patients in other integrated care arrangements; vascular access services; clinical research programs; physician services; and comprehensive kidney care services. As of December 31, 2021, it provided dialysis and administrative services in the United States through a network of 2,815 outpatient dialysis centers serving approximately 203,100 patients; and operated 339 outpatient dialysis centers located in 10 countries outside of the United States serving approximately 39,900 patients. Further, the company provides acute inpatient dialysis services in approximately 850 hospitals and related laboratory services in the United States. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado. DAVITA INC. (DVA) is classified as a large-cap stock in the Healthcare sector. The company is led by CEO Javier J. Rodriguez and employs approximately 70,000 people, headquartered in Wilmington, Colorado. With a market capitalization of $10.1B, DVA is one of the prominent companies in the Healthcare sector.
DAVITA INC. (DVA) Stock Rating — Hold (April 2026)
As of April 2026, DAVITA INC. receives a Hold rating with a composite score of 50.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DVA ranks #322 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, DAVITA INC. ranks #13 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DVA Stock Price and 52-Week Range
DAVITA INC. (DVA) currently trades at $150.05. The stock lost $0.63 (0.4%) in the most recent trading session. The 52-week high for DVA is $157.91, which means the stock is currently trading -5.0% from its annual peak. The 52-week low is $101.00, putting the stock 48.6% above its annual trough. Recent trading volume was 456K shares, suggesting relatively thin trading activity.
Is DVA Overvalued or Undervalued? — Valuation Analysis
DAVITA INC. (DVA) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 9.51x, compared to the Healthcare sector average of 23.63x — a discount of 60%. The price-to-book ratio stands at 7.09x, versus the sector average of 2.75x. The price-to-sales ratio is 0.75x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, DVA trades at 3.63x EV/EBITDA, versus 6.34x for the sector. The EV/EBIT multiple is 11.10x.
Based on these multiples, DAVITA INC. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
DAVITA INC. Profitability — ROE, Margins, and Quality Score
DAVITA INC. (DVA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 77.5%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 6.0% versus the sector average of -33.1%.
On a margin basis, DAVITA INC. reports gross margins of 32.2%, compared to 71.5% for the sector. The operating margin is 15.2% (sector: -66.1%). Net profit margin stands at 7.9%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 7.3% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DVA Debt, Balance Sheet, and Financial Health
DAVITA INC. has a debt-to-equity ratio of 764.0%, compared to the Healthcare sector average of 32.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.29x, suggesting adequate working capital coverage. Total debt on the balance sheet is $10.27B. Cash and equivalents stand at $706M.
DVA has a beta of 0.57, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for DAVITA INC. is 75/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
DAVITA INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, DAVITA INC. reported revenue of $13.29B and earnings per share (EPS) of $10.06. Net income for the quarter was $1.04B. Gross margin was 32.2%. Operating income came in at $2.02B.
In FY 2025, DAVITA INC. reported revenue of $13.64B and earnings per share (EPS) of $10.06. Net income for the quarter was $1.08B. Revenue grew 6.5% year-over-year compared to FY 2024. Operating income came in at $2.04B.
In Q3 2025, DAVITA INC. reported revenue of $3.42B and earnings per share (EPS) of $2.09. Net income for the quarter was $240M. Revenue grew 4.8% year-over-year compared to Q3 2024. Operating income came in at $506M.
In Q2 2025, DAVITA INC. reported revenue of $3.38B and earnings per share (EPS) of $2.62. Net income for the quarter was $275M. Revenue grew 6.1% year-over-year compared to Q2 2024. Operating income came in at $538M.
Over the past 8 quarters, DAVITA INC. has demonstrated a growth trajectory, with revenue expanding from $3.19B to $13.29B. Investors analyzing DVA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DVA Dividend Yield and Income Analysis
DAVITA INC. (DVA) does not currently pay a dividend. This is common among growth-oriented companies in the Healthcare industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
DVA Momentum and Technical Analysis Profile
DAVITA INC. (DVA) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DVA vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing DVA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DVA vs S&P 500 (SPY) comparison to assess how DAVITA INC. stacks up against the broader market across all factor dimensions.
DVA Next Earnings Date
No upcoming earnings date has been announced for DAVITA INC. (DVA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DVA? — Investment Thesis Summary
DAVITA INC. presents a balanced picture with arguments on both sides. The value score of 79/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 75/100) reduces downside risk.
In summary, DAVITA INC. (DVA) earns a Hold rating with a composite score of 50.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DVA stock.
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Institutional Research Dossier
DAVITA INC. (DVA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
DaVita Inc. (DVA) currently holds a 'Hold' rating, a reflection of its complex interplay of strong profitability metrics offset by significant debt and regulatory headwinds. While the company demonstrates impressive operational efficiency and returns, particularly compared to the broader healthcare sector, its high leverage and the inherent uncertainties within the dialysis service industry warrant a cautious approach. The primary takeaway is that DaVita's future performance hinges on its ability to navigate the evolving regulatory landscape and effectively manage its debt burden while sustaining its operational excellence.
The company's valuation appears attractive on the surface, with lower P/E and EV/EBITDA ratios than the sector average. However, the high debt-to-equity ratio and the potential for regulatory changes to impact reimbursement rates temper the enthusiasm. Investors should closely monitor DaVita's debt reduction efforts, its ability to maintain profitability in the face of potential reimbursement pressures, and its success in expanding its integrated care offerings to drive future growth.
Business Strategy & Overview
DaVita Inc. operates primarily in the kidney dialysis services sector, providing care for patients with chronic kidney failure. The core of its business involves operating outpatient dialysis centers, where patients receive life-sustaining hemodialysis treatments. Revenue is generated primarily through reimbursements from government payers (Medicare and Medicaid) and private insurance companies. DaVita also provides related lab services, outpatient, hospital inpatient, and home-based hemodialysis services, and management and administrative services to outpatient dialysis centers.
A key strategic element for DaVita is its focus on integrated care. This involves providing disease management services to patients in risk-based arrangements, aiming to improve patient outcomes and reduce overall healthcare costs. This strategy aligns with the industry's shift towards value-based care, where providers are incentivized to deliver high-quality, cost-effective care. DaVita's integrated care segment, while smaller than its core dialysis business, represents a significant growth opportunity and a potential differentiator in the market.
DaVita's geographic footprint is substantial, with a large network of dialysis centers in the United States and a smaller but significant presence in several international markets. This scale provides DaVita with certain advantages, including economies of scale in procurement and operations. However, it also exposes the company to regulatory and reimbursement risks in multiple jurisdictions.
The company also focuses on vascular access services, clinical research programs, physician services, and comprehensive kidney care services. These ancillary services contribute to revenue diversification and enhance the overall value proposition for patients. DaVita's strategy involves expanding these services to capture a larger share of the kidney care market and to improve patient outcomes through a more holistic approach.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.3%
Sector: 10.6%
-31% VS SCTR
Economic Moat Analysis
DaVita's economic moat can be classified as Narrow. The company benefits from a combination of factors that create some competitive advantages, but these are not strong enough to warrant a Wide moat rating. The primary source of DaVita's moat is its efficient scale and switching costs, although the latter is relatively weak.
The dialysis industry is characterized by high capital costs and regulatory hurdles, which limit the entry of new competitors. Establishing a network of dialysis centers requires significant investment in equipment, facilities, and personnel. Furthermore, dialysis providers must comply with stringent regulations and obtain certifications, which adds to the barriers to entry. This efficient scale allows established players like DaVita to maintain a significant market share.
Switching costs for patients are present but not overwhelming. Patients with chronic kidney failure require regular dialysis treatments, and changing providers can be disruptive and inconvenient. Patients often develop relationships with their care teams and become accustomed to the routines and procedures at their dialysis center. However, patients are not entirely locked in, and they can switch providers if they are dissatisfied with the quality of care or if their insurance coverage changes.
DaVita's brand reputation and established relationships with physicians and hospitals also contribute to its competitive advantage. Physicians often refer patients to specific dialysis providers, and DaVita's reputation for quality care can influence these referrals. The company's relationships with hospitals are also important for providing acute inpatient dialysis services.
However, the dialysis industry is subject to significant reimbursement pressures, which can erode the profitability of dialysis providers. Government payers, particularly Medicare, play a dominant role in reimbursement rates, and changes in these rates can have a material impact on DaVita's financial performance. This regulatory risk limits the strength of DaVita's moat.
Financial Health & Profitability
DaVita's financial health presents a mixed picture. The company demonstrates strong profitability metrics, but its high debt levels raise concerns about its long-term financial stability. Revenue has shown consistent growth over the past few years, with a TTM revenue of $13.64 billion, representing a 7.3% increase compared to the previous year. This growth is driven by increasing demand for dialysis services and DaVita's expansion of its integrated care offerings. The quarterly revenue trend shows consistent performance, with Q3 FY2025 revenue at $3.42 billion.
DaVita's profitability is impressive, particularly compared to the broader healthcare sector. The company's TTM net income is $1.08 billion, resulting in a net margin of 7.9%. This is significantly higher than the sector average of -54.1%. The operating margin of 15.2% also outperforms the sector average of -65.2%. The company's ROE of 77.5% is exceptionally high, indicating efficient use of equity to generate profits. However, it is important to note that this high ROE is partially driven by the company's high leverage.
The primary concern regarding DaVita's financial health is its high debt burden. The company's total debt stands at $10.27 billion, resulting in a debt-to-equity ratio of 764.00, which is significantly higher than the sector average of 30.00. This high leverage increases the company's financial risk and limits its flexibility to pursue growth opportunities or weather economic downturns. The company's current ratio of 1.29 indicates adequate liquidity to meet its short-term obligations.
Free cash flow generation is a positive aspect of DaVita's financial profile. The company's TTM free cash flow is $1.38 billion, providing ample resources to service its debt and invest in its business. However, the company's high debt levels mean that a significant portion of its cash flow is allocated to debt repayment, which limits its ability to reinvest in growth initiatives or return capital to shareholders.
Analyzing the quarterly financial history, the operating margin has remained relatively stable, fluctuating between 13.6% and 16.4%. This consistency suggests that DaVita is effectively managing its costs and maintaining its profitability despite potential reimbursement pressures. However, it is crucial for the company to continue to improve its cost structure and optimize its operations to mitigate the impact of future reimbursement changes.
Valuation Assessment
DaVita's valuation presents a seemingly attractive picture based on certain multiples, but a deeper dive reveals complexities that temper the enthusiasm. The company's P/E ratio of 14.8x is significantly lower than the healthcare sector average of 24.3x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 0.9x is substantially lower than the sector average of 6.4x, further indicating potential undervaluation.
However, these seemingly low multiples must be considered in the context of DaVita's high debt levels and the regulatory risks inherent in the dialysis industry. The company's high debt-to-equity ratio increases its financial risk and limits its flexibility to pursue growth opportunities. Furthermore, changes in reimbursement rates from government payers could significantly impact DaVita's earnings and cash flow, making it difficult to accurately forecast future performance.
A more nuanced valuation approach would involve considering DaVita's free cash flow yield and its growth prospects. The company's TTM free cash flow of $1.38 billion represents a healthy yield on its market capitalization of $9.98 billion. However, the company's growth prospects are somewhat limited by the mature nature of the dialysis market and the potential for reimbursement pressures. While the integrated care segment offers growth opportunities, it is still a relatively small part of DaVita's overall business.
Given these factors, DaVita's valuation can be considered fair. The company's low multiples reflect the risks associated with its high debt levels and the regulatory environment. While the company's strong profitability and free cash flow generation are positive attributes, they are offset by the uncertainties surrounding its future growth and reimbursement rates. A discounted cash flow (DCF) analysis, incorporating conservative growth assumptions and a risk-adjusted discount rate, would likely yield a valuation close to the current market price.
Investors should closely monitor DaVita's debt reduction efforts and its ability to maintain profitability in the face of potential reimbursement pressures. If the company can successfully deleverage its balance sheet and demonstrate sustainable growth in its integrated care segment, its valuation could potentially increase. However, until these uncertainties are resolved, a cautious approach is warranted.
Risk & Uncertainty
DaVita faces several specific risks that could negatively impact its business and financial performance. The most significant risk is regulatory and reimbursement risk. A substantial portion of DaVita's revenue comes from government payers, particularly Medicare and Medicaid. Changes in reimbursement rates or regulations could significantly reduce DaVita's profitability. For example, potential changes to the reimbursement model for dialysis services or increased scrutiny of billing practices could have a material adverse effect on the company's financial results.
Competition within the dialysis industry is another significant risk. DaVita competes with other large dialysis providers, as well as smaller regional and local providers. Increased competition could lead to lower prices and reduced market share. Furthermore, the emergence of new technologies or treatment modalities could disrupt the dialysis market and erode DaVita's competitive advantage.
Debt burden poses a considerable risk. DaVita's high debt levels increase its financial risk and limit its flexibility to pursue growth opportunities or weather economic downturns. The company's ability to service its debt depends on its ability to generate sufficient cash flow, which could be negatively impacted by regulatory changes, competition, or other factors. A downgrade in DaVita's credit rating could further increase its borrowing costs and limit its access to capital.
Concentration of patients represents a risk. A significant portion of DaVita's revenue is derived from a relatively small number of patients. The loss of a large group of patients, due to changes in insurance coverage or other factors, could have a material adverse effect on the company's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDaVita's strong operational efficiency and integrated care strategy will drive sustainable revenue and earnings growth, exceeding market expectations.
BULL VIEWThe company's deleveraging efforts will significantly reduce its debt burden, improving its financial flexibility and attracting a higher valuation multiple.
BULL VIEWFavorable demographic trends, such as the aging population and increasing prevalence of diabetes, will continue to fuel demand for dialysis services, benefiting DaVita.
The Bear Case
BEAR VIEWRegulatory changes and reimbursement pressures will significantly reduce DaVita's profitability, leading to lower earnings and a decline in its stock price.
BEAR VIEWDaVita's high debt levels make it vulnerable to economic downturns and rising interest rates, potentially leading to financial distress.
BEAR VIEWIncreased competition from other dialysis providers and the emergence of new treatment modalities will erode DaVita's market share and competitive advantage.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DVA and 4,400+ other equities.
DAVITA INC. exhibits a 0% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
6.0%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
32.2%
Sector: 71.5%
Operating Margin
Core business profitability
15.2%
Sector: -66.1%
Net Margin
Bottom-line profitability
7.9%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
