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DaVita Inc DVA

Morningstar Rating
$137.95 −0.50 (0.36%)
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Company Report

DaVita's Outlook Is Improving Despite Obesity Drug Expansion

After selling the DaVita Medical Group in 2019, DaVita focuses almost exclusively on providing services to end-stage renal disease, or ESRD, patients primarily in the United States with an expanding international footprint. Over several decades, DaVita has built the largest network of dialysis clinics in the U.S., and although COVID-19-related mortality and labor pressures cut into DaVita's profits in recent years, we see brighter days ahead for DaVita, despite some challenges emerging on the obesity drug front.

Price vs Fair Value

DVA is trading at a 525% premium.
Price
$137.95
Fair Value
$991.00
Uncertainty
High
1-Star Price
$665.30
5-Star Price
$26.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Excluding recent COVID-19 mortality challenges and obesity drug expansion, the ESRD patient population may grow at a healthy rate in the U.S. and around the globe for the long run, which should benefit DaVita.

Bears

Potential U.S. healthcare policy changes could reduce industry profitability if insurance coverage shifts away from employer-based plans and if Medicare reimbursement rates aren't changed significantly.

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News

Trading Information

Previous Close Price
$138.45
Day Range
$137.48139.11
52-Week Range
$71.51147.93
Bid/Ask
$137.50 / $141.00
Market Cap
$12.10 Bil
Volume/Avg
572,044 / 854,922

Key Statistics

Price/Earnings (Normalized)
15.03
Price/Sales
1.04
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
5.37%

Company Profile

DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives about two thirds of U.S. sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.
Sector
Healthcare
Industry
Medical Care Facilities
Stock Style Box
Mid Core
Total Number of Employees
70,000

Competitors

Valuation

Metric
DVA
THC
HCA
Price/Earnings (Normalized)
15.0315.4716.78
Price/Book Value
13.073.84
Price/Sales
1.040.671.34
Price/Cash Flow
6.427.738.88
Price/Earnings
DVA
THC
HCA

Financial Strength

Metric
DVA
THC
HCA
Quick Ratio
1.301.230.86
Current Ratio
1.431.441.16
Interest Coverage
4.365.815.07
Quick Ratio
DVA
THC
HCA

Profitability

Metric
DVA
THC
HCA
Return on Assets (Normalized)
6.99%3.29%9.68%
Return on Equity (Normalized)
118.17%50.21%
Return on Invested Capital (Normalized)
10.75%7.95%16.36%
Return on Assets
DVA
THC
HCA
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Morningstar Rating for Stocks
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Economic Moat
Market Cap
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CyqwzdmwNztkg$13.3 Bil
Universal Health Services Inc Class B
UHS
Jxqyjt$12.4 Bil
Fresenius Medical Care AG
FMCQF
Bfwtb$11.2 Bil
Fresenius Medical Care AG ADR
FMS
HxnyqScxptnx$11.2 Bil
Bangkok Dusit Medical Services PCL Units Non-Voting Depository Receipt
BDUUF
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AMN Healthcare Services Inc
AMN
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