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DaVita
(NYSE:DVA)
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Rating:60Neutral
Price Target:
$239.00
▲(1.51% Upside)
Action:Reiterated
Date:08/05/26
The score is capped primarily by financial risk from the highly leveraged balance sheet and negative equity, despite solid operating results and strong free cash flow. Technicals are moderately supportive (price above key longer-term averages), while valuation is neutral based on the mid-20s P/E and no dividend yield data. The latest earnings call was constructive on guidance and execution, but tempered by revenue-per-treatment pressure, ACA mix headwinds, and cost/regulatory uncertainties.
Positive Factors
Strong cash generation
Consistently strong operating cash flow and sharply rising free cash flow provide durable internal funding for capex, clinical initiatives and share repurchases. Over a 2–6 month horizon this supports strategic flexibility to service debt, sustain investment and prioritize high-return uses despite heavy gross leverage.
Negative Factors
High leverage / negative equity
Very large debt and an equity deficit materially constrain financial flexibility, elevating refinancing and interest-rate risk. Even with strong cash generation, deleveraging is likely to be gradual, limiting capacity for large M&A, meaningfully faster buybacks, or to absorb sizable reimbursement or regulatory shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently strong operating cash flow and sharply rising free cash flow provide durable internal funding for capex, clinical initiatives and share repurchases. Over a 2–6 month horizon this supports strategic flexibility to service debt, sustain investment and prioritize high-return uses despite heavy gross leverage.
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
$15.41B
Dividend YieldN/A
Average Volume (3M)761.53K
Price to Earnings (P/E)23.7
Beta (1Y)0.50
Revenue Growth6.68%
EPS Growth2.79%
CountryUS
Employees78,000
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)11.63
Shares Outstanding64,200,000
10 Day Avg. Volume607,188
30 Day Avg. Volume761,531
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)-15.02
Price to Sales (P/S)0.72
P/FCF Ratio7.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$240.00Price Target Upside1.94% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)14.88
Revenue Forecast (FY)$14.09B
DaVita Business Overview & Revenue Model
Company Description
DaVita Inc. specializes in delivering essential kidney dialysis treatments and comprehensive renal care to individuals grappling with chronic kidney failure. The company primarily operates an extensive network of outpatient dialysis centers, suppl...
How the Company Makes Money
DaVita primarily makes money by delivering dialysis treatments and related kidney-care services and then collecting reimbursement from government and commercial payors. The largest revenue stream is outpatient dialysis services provided in DaVita ...
DaVita Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear clinical progress (phosphate binder transition, MOTheR results, expanded HD supply and deployment) and solid near-term financials (Q2 OI, EPS, free cash flow, buybacks, leverage within target) support confidence in the strategy. However, near-term revenue-per-treatment pressure, ACA-related commercial mix headwinds (~$40M in 2026, ~$70M in 2027), elevated patient care cost growth YTD (>3%), and some operational noise (missed treatments, smaller Fresenius pickup) temper upside and create uncertainty for margin expansion in the back half of the year and into 2027.Positive Updates
Solid Q2 Financial Results
Adjusted operating income of $579 million, adjusted EPS of $4.02, and free cash flow of $256 million in Q2 2026, with enterprise OI up about 5% year-over-year.
Negative Updates
Revenue Per Treatment Pressure
Revenue per treatment decreased approximately $2 sequentially; year-to-date RPT is 3.6% higher than H1 2025, but full-year RPT growth now expected only 1%–2% (implying slightly negative RPT in H2 vs. prior-year H2).
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Q2 Financial Results
Adjusted operating income of $579 million, adjusted EPS of $4.02, and free cash flow of $256 million in Q2 2026, with enterprise OI up about 5% year-over-year.
Read all positive updates
Company Guidance
DaVita reconfirmed full‑year 2026 guidance with a midpoint of $2.2 billion adjusted operating income and $14.65 adjusted EPS, citing Q2 results of $579 million adjusted OI, $4.02 adjusted EPS and $256 million free cash flow; management now expects 2026 total treatment growth near the top end of its prior 25–50 basis point range (nominal growth that normalizes to ~50–75 bps) and a longer‑term target of at least 2% treatment growth by 2029. They reiterated RPT guidance of +1% to +2% for the year (year‑to‑date RPT is +3.6% vs. H1 2025, but RPT fell roughly $2 sequentially), expect patient care cost per treatment to have declined about $3 sequentially (PCCs are >3% higher YTD vs. H1 2025) and project total cost per treatment growth of 1.25%–2.25% for the full year. Financial phasing assumptions include a $50–$100 million sequential increase in adjusted OI from Q3 to Q4 (IKC timing a key driver), roughly $20 million each from International and IKC to full‑year OI (IKC was +$40M in Q2), a $40 million 2026 headwind from ACA mix (with ~$70M expected in 2027), continued capital allocation via buybacks (2.2M shares repurchased in Q2 +183k since quarter end), leverage at 3.37x consolidated EBITDA, $152M quarterly interest expense, $500M incremental debt issued, and a $200M Elara investment (expected to add mid‑single‑digit millions to other income in 2026).DaVita Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.01B | 13.64B | 12.82B | 12.14B | 11.61B | 11.62B |
| Gross Profit | 4.35B | 3.68B | 4.22B | 3.82B | 3.40B | 3.65B |
| EBITDA | 2.76B | 2.64B | 2.72B | 2.32B | 2.06B | 2.48B |
| Net Income | 925.30M | 746.80M | 936.34M | 691.53M | 560.40M | 978.45M |
Balance Sheet | ||||||
| Total Assets | 17.71B | 17.48B | 17.29B | 16.89B | 16.93B | 17.12B |
| Cash, Cash Equivalents and Short-Term Investments | 688.88M | 782.05M | 846.00M | 391.67M | 321.78M | 484.21M |
| Total Debt | 10.78B | 15.05B | 12.07B | 11.12B | 11.82B | 11.98B |
| Total Liabilities | 16.63B | 16.32B | 15.19B | 14.15B | 14.70B | 14.75B |
| Stockholders Equity | -765.10M | -651.08M | 121.12M | 1.06B | 712.33M | 755.51M |
Cash Flow | ||||||
| Free Cash Flow | 1.61B | 1.31B | 1.47B | 1.49B | 961.14M | 1.29B |
| Operating Cash Flow | 2.19B | 1.89B | 2.02B | 2.06B | 1.56B | 1.93B |
| Investing Cash Flow | -759.41M | -654.95M | -771.43M | -771.80M | -630.35M | -784.73M |
| Financing Cash Flow | -1.48B | -1.37B | -816.94M | -1.17B | -1.12B | -1.08B |
DaVita Technical Analysis
Negative
235.44
Price Trends
217.99
Negative
190.56
Negative
158.01
Positive
Market Momentum
0.62
Positive
23.42
Positive
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVA, the sentiment is Negative. The current price of 235.44 is above the 20-day moving average (MA) of 232.60, above the 50-day MA of 217.99, and above the 200-day MA of 158.01, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 23.42 is Positive, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.02B | 18.27 | 25.35% | 0.67% | 10.05% | 23.59% | |
73 Outperform | $20.51B | 9.75 | 50.63% | ― | 5.43% | 65.86% | |
71 Outperform | $10.38B | 27.12 | 16.53% | 0.15% | 18.89% | 15.48% | |
68 Neutral | $13.62B | 13.55 | 7.11% | 3.52% | 7.24% | 67.43% | |
62 Neutral | $87.16B | 13.44 | -112.87% | 0.78% | 7.31% | 25.54% | |
60 Neutral | $15.41B | 23.65 | -133.12% | ― | 6.68% | 2.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DVA
DaVita
188.69
60.88
47.63%
FMS
Fresenius Medical Care
23.89
1.01
4.41%
HCA
HCA Healthcare
409.64
45.96
12.64%
EHC
Encompass Health
110.90
-4.73
-4.09%
THC
Tenet Healthcare
261.74
102.48
64.35%
ENSG
The Ensign Group
178.65
20.75
13.14%
DaVita Corporate Events
Private Placements and FinancingShareholder Meetings
DaVita Expands Term Loan Facility, Enhancing Capital Flexibility
Positive
Jun 8, 2026
On June 8, 2026, DaVita Inc. amended its existing credit agreement to add $500 million in incremental Tranche B-2 term loans maturing in May 2031, denominated in U.S. dollars and bearing interest at either a base rate or Term SOFR plus an applicab...
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.