DaVita Inc. (DVA)
NYSE:DVA
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DaVita
(NYSE:DVA)
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Rating:68Neutral
Price Target:
$217.00
▲(46.71% Upside)
Action:Reiterated
Date:05/09/26
The score is anchored by solid operating results and strong free cash flow, reinforced by a positive earnings update with raised 2026 guidance. The main constraint is elevated financial risk from high leverage and negative equity, while technicals show strong trend but very overbought conditions that raise short-term downside risk; valuation appears reasonable at ~13x earnings.
Positive Factors
Strong cash generation
Sustained operating cash flow and material free cash flow provide durable internal funding for operations, capex, buybacks, and strategic initiatives. Over a multi‑month horizon this supports investment in productivity, service expansion, and servicing debt without relying solely on external capital.
Negative Factors
Very high leverage and negative equity
Excessive leverage and a negative equity balance materially reduce financial flexibility, increasing vulnerability to higher interest costs, limiting capacity for opportunistic investments, and elevating refinancing and covenant risk if cash flow weakens or reimbursement shifts occur over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash flow and material free cash flow provide durable internal funding for operations, capex, buybacks, and strategic initiatives. Over a multi‑month horizon this supports investment in productivity, service expansion, and servicing debt without relying solely on external capital.
Read all positive factors
DaVita Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down income across different business areas, showing where the company is earning the most and identifying growth or risk areas.
Breaks down income across different business areas, showing where the company is earning the most and identifying growth or risk areas.
Data provided by:
The Fly
The FlyDaVita (DVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.34B
Dividend YieldN/A
Average Volume (3M)963.13K
Price to Earnings (P/E)16.6
Beta (1Y)0.50
Revenue Growth6.68%
EPS Growth2.79%
CountryUS
Employees76,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)10.15
Shares Outstanding64,200,000
10 Day Avg. Volume708,085
30 Day Avg. Volume963,133
Financial Highlights & Ratios
PEG Ratio-1.11
Price to Book (P/B)-15.02
Price to Sales (P/S)0.72
P/FCF Ratio7.46
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue1.81
Enterprise Value/Gross Profit5.80
Enterprise Value/Ebitda9.25
Forecast
1Y Price Target
$211.00Price Target Upside42.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)14.7
Revenue Forecast (FY)$14.09B
DaVita Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
DaVita makes money primarily by providing dialysis treatments and related clinical services to patients with ESRD in its outpatient dialysis centers, earning reimbursement on a per-treatment basis. Its key revenue streams are: (1) Dialysis and rel...
DaVita Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call reflected a generally positive tone: the company beat Q1 expectations, raised and narrowed full-year adjusted operating income and EPS guidance, demonstrated productivity-led cost improvements, and highlighted strong IKC clinical and savings performance. Material investments in technology and AI were emphasized as strategic drivers of future clinical and operational outperformance. Offsetting items included near-term pressure from higher G&A (driven by technology spend), an IKC operating loss, modest treatment declines versus prior year, ACA enrollment/mix uncertainty that could pressure revenue per treatment later in the year, and unchanged free cash flow guidance. On balance, the positive beats, guidance raise, and structural investments outweighed the near-term headwinds.Positive Updates
Beat on Adjusted Operating Income and EPS
Q1 adjusted operating income of $482 million and adjusted EPS of $2.87, with adjusted OI about $50 million ahead of forecast (roughly half from operational outperformance and half timing).
Negative Updates
G&A Growth from Technology Investments
U.S. dialysis G&A increased ~$37 million year-over-year, a ~13% rise versus Q1 2025, driven by continued investment in technology and professional fees (management views investment as strategic but G&A is growing faster than revenue).
Read all updates
Q1-2026 Updates
Positive
Negative
Beat on Adjusted Operating Income and EPS
Q1 adjusted operating income of $482 million and adjusted EPS of $2.87, with adjusted OI about $50 million ahead of forecast (roughly half from operational outperformance and half timing).
Read all positive updates
Company Guidance
Management raised and narrowed 2026 financial guidance after a strong Q1: adjusted operating income guidance is now $2.15–$2.25 billion (roughly $40M higher at the midpoint) and adjusted EPS guidance is $14.10–$15.20 per share; Q1 results included $482M of adjusted operating income (about $50M ahead of forecast), $2.87 adjusted EPS and $140M of free cash flow. They raised full‑year treatment volume growth to +25–50 bps (implying +50–75 bps in treatments per normalized day), after Q1 treatments were down ~20 bps YoY while treatments per normalized day rose ~40 bps; revenue per treatment grew ~4% YoY in Q1 (company expects 1–2% for the year), patient care cost per treatment was roughly flat to Q4, IKC posted a $19M operating loss and international OI was $30M, leverage was 3.34x EBITDA, Q1 debt expense was $145M (expected to run similar quarterly), and the prior ~$40M ACA headwind remains under review as enrollment trends look slightly favorable.DaVita Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.84B | 13.64B | 12.82B | 12.14B | 11.61B | 11.62B |
| Gross Profit | 4.30B | 3.68B | 4.22B | 3.82B | 3.40B | 3.65B |
| EBITDA | 2.70B | 2.64B | 2.72B | 2.32B | 2.06B | 2.48B |
| Net Income | 781.42M | 746.80M | 936.34M | 691.53M | 560.40M | 978.45M |
Balance Sheet | ||||||
| Total Assets | 17.50B | 17.48B | 17.29B | 16.89B | 16.93B | 17.12B |
| Cash, Cash Equivalents and Short-Term Investments | 748.71M | 782.05M | 846.00M | 391.67M | 321.78M | 484.21M |
| Total Debt | 13.22B | 15.05B | 12.07B | 11.12B | 11.82B | 11.98B |
| Total Liabilities | 16.45B | 16.32B | 15.19B | 14.15B | 14.70B | 14.75B |
| Stockholders Equity | -755.50M | -651.08M | 121.12M | 1.06B | 712.33M | 755.51M |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.31B | 1.47B | 1.49B | 961.14M | 1.29B |
| Operating Cash Flow | 2.03B | 1.89B | 2.02B | 2.06B | 1.56B | 1.93B |
| Investing Cash Flow | -631.90M | -654.95M | -771.43M | -771.80M | -630.35M | -784.73M |
| Financing Cash Flow | -1.21B | -1.37B | -816.94M | -1.17B | -1.12B | -1.08B |
DaVita Technical Analysis
Positive
147.91
Price Trends
170.76
Positive
154.06
Positive
139.34
Positive
Market Momentum
5.91
Positive
57.26
Neutral
43.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVA, the sentiment is Positive. The current price of 147.91 is below the 20-day moving average (MA) of 195.79, below the 50-day MA of 170.76, and above the 200-day MA of 139.34, indicating a neutral trend. The MACD of 5.91 indicates Positive momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 43.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DVA.
DaVita Risk Analysis
DaVita disclosed 26 risk factors in its most recent earnings report. DaVita reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DaVita Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.32B | 16.94 | 25.35% | 0.65% | 10.05% | 23.59% | |
69 Neutral | $9.95B | 27.08 | 16.63% | 0.14% | 19.23% | 15.67% | |
68 Neutral | $12.34B | 16.57 | -133.12% | ― | 6.68% | 2.79% | |
68 Neutral | $13.96B | 8.26 | 40.55% | ― | 4.56% | 27.14% | |
63 Neutral | $11.69B | 11.12 | 7.16% | 3.29% | 7.24% | 67.43% | |
58 Neutral | $82.55B | 12.41 | -123.20% | 0.61% | 6.71% | 29.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DVA
DaVita
192.16
54.38
39.47%
FMS
Fresenius Medical Care
22.03
-5.82
-20.90%
HCA
HCA Healthcare
372.13
1.61
0.44%
EHC
Encompass Health
104.01
-15.49
-12.96%
THC
Tenet Healthcare
162.06
-4.13
-2.49%
ENSG
The Ensign Group
170.30
20.73
13.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.