DaVita Inc. (DVA) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: DaVita Inc.

Updated on October 31, 2026 · accounts published on October 29, 2026

A steady, cash-generative business carrying a heavy debt load

DaVita trades at a P/E of 14.7× over the last 12 months, 52 % below its sector median of 30.4× and 7 % under its own ten-year median.

• Is DaVita expensive or cheap? DaVita's P/E of 14.7× is 52 % below the sector median of 30.4× and 7 % under its own ten-year median of 15.9×.
• How is the business doing? Revenue grew 6.5 % over the last 12 months while EPS fell 11.4 %; the 14.8 % operating margin tops the 13.9 % average since 2014.
• How strong is the balance sheet? Net debt of $172.10 per share at the end of fiscal 2025 equals 92 % of the share price and 5.4× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $4.40 when DaVita reports on February 1, 2027; it beat estimates in 7 of the last 8 quarters.
• Does DaVita invest enough in R&D and turn earnings into cash? Free cash flow was 176 % of net income in fiscal 2025, far above the 90 % healthy mark, while R&D was 0.0 % of revenue.

Is DaVita expensive or cheap?

Over the last 12 months DaVita trades at a P/E of 14.7×, slightly below its ten-year median of 15.9× and well inside the decade's range of 7.6× to 23.4×. It has traded at a lower multiple only 39 % of the time in the last decade, so the stock sits near the middle of its own history. The healthcare sector median P/E is 30.4× across 246 companies, which puts DaVita 52 % below it. A free cash flow yield of 13.9 % and an EV/EBITDA of 8.8× point the same way. The shares are up 58 % over 12 months but remain 22 % below the 52-week high of $240.96.

How is the business doing?

Sales are growing, but earnings per share are not keeping up: over the last 12 months revenue rose 6.5 % while EPS fell 11.4 %. Margins are holding. The operating margin of 14.8 % matches fiscal 2025's 14.7 % and beats the 13.9 % average of fiscal 2014-2025, so profitability per dollar of sales has not eroded. Net margin is thinner at 6.5 %. ROIC of 10.7 % is 5.1 points above the sector median of 5.6 %, yet over the last ten fiscal years it cleared 10 % only twice, with a low of 7.1 % in 2018. Returns are solid rather than exceptional.

How strong is the balance sheet?

Debt is the weak point. At the end of fiscal 2025 DaVita carried $181.18 of debt per share against $9.08 of cash, leaving net debt equal to 92 % of the current share price. Net debt stands at 5.4× EBITDA, more than double the 2.5× considered healthy in the sector. The Altman Z-score of 1.6 over the last 12 months falls in the distress zone, and a Piotroski score of 5 out of 9 is only middling. Short-term liquidity is adequate, with a current ratio of 1.41. A low P/E is easier to understand when shareholders stand behind a creditor claim this large.

What to expect from the next earnings?

DaVita tends to beat forecasts. On October 29, 2026 it reported EPS of $3.82 against $3.57 expected, a 7.0 % beat, and it has topped estimates in 7 of the last 8 quarters. For the quarter due on February 1, 2027, analysts expect EPS of $4.40. The 2026 EPS consensus barely moved in the last 30 days, from $14.77 to $14.82, and revenue estimates were also stable, so the latest beat has not led to upgrades. Of the 23 analysts covering the company, 10 rate it a buy, 12 a hold and 1 a sell: a lukewarm consensus.

Does DaVita invest enough in R&D and turn earnings into cash?

In healthcare the research pipeline is the invisible asset: expiring patents are revenue that evaporates, so the sector is judged on innovation and cash flow. DaVita fails the innovation side. R&D was 0.0 % of revenue in fiscal 2025 against a healthy 15 %, its 27 % gross margin is far from the 70 % of branded pharma, and EPS grew 6.1 % a year over fiscal 2020-2025, short of the 8 % bar. The cash side is strong: free cash flow at 176 % of net income shows profits arrive as real cash. With these pharma benchmarks fitting poorly, cash conversion and debt are the measures that count here.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.