📊 DVA Key Takeaways
Is Davita Inc.. (DVA) a Good Investment?
DaVita operates a functionally profitable healthcare business with 6.5% revenue growth and 14.1% operating margins, demonstrating operational viability. However, severe balance sheet distress—negative stockholders' equity of -$755.5M, $10.7B long-term debt, and critically low interest coverage of 0.9x—indicates the company cannot cover interest expenses from operations. Declining net income despite revenue growth and minimal ROA of 1.1% suggest financial viability is at risk without significant deleveraging.
DaVita shows solid underlying operating fundamentals, with 6.5% revenue growth, a healthy 15.0% operating margin, and strong free cash flow generation of $1.31B. However, the sharp 30.8% decline in net income, very high leverage, and negative stockholders' equity materially weaken financial flexibility and reduce the quality of that growth. The business appears fundamentally resilient, but balance sheet risk keeps the outlook balanced rather than clearly favorable.
Why Buy Davita Inc.. Stock? DVA Key Strengths
- Positive revenue growth of 6.5% YoY demonstrates underlying business demand in essential dialysis services
- Operating margin of 14.1% shows reasonable operational efficiency and cost management
- Positive free cash flow of $218.8M provides liquidity for debt service despite financial distress
- Consistent top-line growth with revenue up 6.5% year over year
- Strong operating profitability and cash generation, including 15.0% operating margin and $1.31B of free cash flow
- Adequate near-term liquidity with 1.29x current ratio and 1.24x quick ratio
DVA Stock Risks: Davita Inc.. Investment Risks
- Interest coverage ratio of 0.9x—operating income cannot cover interest expenses; unsustainable debt service trajectory
- Negative stockholders' equity of -$755.5M indicates balance sheet insolvency; equity completely impaired
- Net income declined 13.8% YoY while revenue grew 6.5%, signaling rising operational costs or escalating financing burden
- Extreme leverage with $16.5B liabilities against $17.5B total assets leaves minimal margin for operational deterioration
- Low ROA of 1.1% indicates poor asset utilization and value creation
- Negative stockholders' equity and $10.34B of long-term debt indicate an aggressive capital structure
- Net income fell 30.8% year over year, showing weaker bottom-line conversion despite revenue growth
- Interest coverage of 3.8x leaves less room if financing costs stay elevated or earnings soften
Key Metrics to Watch
- Interest coverage ratio trend—must move above 1.5x for sustainability
- Net income trajectory—must reverse decline and resume growth to support debt service
- Debt reduction progress—focus on absolute debt levels and debt-to-EBITDA multiple
- Operating cash flow stability—critical to monitor ongoing liquidity generation
- Stockholders' equity path to positive—measure of balance sheet recovery
- Net income trend relative to revenue growth and operating income
- Debt reduction progress and interest coverage
Davita Inc.. (DVA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Davita Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DVA Profit Margin, ROE & Profitability Analysis
DVA vs Services Sector: How Davita Inc.. Compares
How Davita Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Davita Inc.. Stock Overvalued? DVA Valuation Analysis 2026
Based on fundamental analysis, Davita Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Davita Inc.. Balance Sheet: DVA Debt, Cash & Liquidity
DVA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Davita Inc..'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.42 reflects profitable operations.
DVA Revenue Growth, EPS Growth & YoY Performance
DVA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $162.9M | $2.00 |
| Q3 2025 | $3.3B | $150.3M | $2.04 |
| Q2 2025 | $3.2B | $199.3M | $2.50 |
| Q1 2025 | $3.1B | $162.9M | $2.00 |
| Q3 2024 | $3.1B | $214.7M | $2.50 |
| Q2 2024 | $3.0B | $178.7M | $1.91 |
| Q1 2024 | $2.9B | $115.5M | $1.25 |
| Q3 2023 | $2.9B | $105.4M | $1.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Davita Inc.. Dividends, Buybacks & Capital Allocation
DVA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Davita Inc.. (CIK: 0000927066)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DVA
What is the AI rating for DVA?
Davita Inc.. (DVA) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DVA's key strengths?
Claude: Positive revenue growth of 6.5% YoY demonstrates underlying business demand in essential dialysis services. Operating margin of 14.1% shows reasonable operational efficiency and cost management. ChatGPT: Consistent top-line growth with revenue up 6.5% year over year. Strong operating profitability and cash generation, including 15.0% operating margin and $1.31B of free cash flow.
What are the risks of investing in DVA?
Claude: Interest coverage ratio of 0.9x—operating income cannot cover interest expenses; unsustainable debt service trajectory. Negative stockholders' equity of -$755.5M indicates balance sheet insolvency; equity completely impaired. ChatGPT: Negative stockholders' equity and $10.34B of long-term debt indicate an aggressive capital structure. Net income fell 30.8% year over year, showing weaker bottom-line conversion despite revenue growth.
What is DVA's revenue and growth?
Davita Inc.. reported revenue of $3.4B.
Does DVA pay dividends?
Davita Inc.. does not currently pay dividends.
Where can I find DVA SEC filings?
Official SEC filings for Davita Inc.. (CIK: 0000927066) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DVA's EPS?
Davita Inc.. has a diluted EPS of $2.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DVA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Davita Inc.. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DVA stock overvalued or undervalued?
Valuation metrics for DVA: ROE of N/A (sector avg: 16%), net margin of 5.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DVA stock in 2026?
Our dual AI analysis gives Davita Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DVA's free cash flow?
Davita Inc..'s operating cash flow is $320.8M, with capital expenditures of $102.0M. FCF margin is 6.4%.
How does DVA compare to other Services stocks?
Vs Services sector averages: Net margin 5.8% (avg: 10%), ROE N/A (avg: 16%), current ratio 1.42 (avg: 1.5).