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

Kaplio's reading: DaVita Inc.

Updated on October 19, 2026 · accounts published on August 4, 2026

Reading of October 16, 2026: A cash-generating business with steady margins, weighed down by heavy debt

DaVita trades at a P/E of 16.5, 45 % below its healthcare sector median of 29.7, but net debt reached 5.4× EBITDA in fiscal 2025.

• Is DaVita expensive or cheap? DaVita's P/E of 16.5 is 45 % below its sector median of 29.7 and only 2 % above its own ten-year median.
• How is the business doing? Revenue grew 6.5 % over the last 12 months while EPS fell 11 %, even as the operating margin held at 15 %.
• How strong is the balance sheet? Net debt of $172.10 per share equals 92 % of the share price and 5.4× EBITDA in fiscal 2025, over twice the healthy 2.5×.
• What to expect from the next earnings? For October 28, 2026 analysts expect EPS of $3.57; DaVita has beaten EPS estimates in 6 of the last 8 quarters.
• Does DaVita invest enough in R&D and turn profit into cash? Free cash flow was 176 % of net income in fiscal 2025, well above the healthy 90 %, 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 16.5, almost level with its ten-year median of 16.1. Over the past decade the multiple has been lower than today 55 % of the time, in a range from 7.6 to 23.4. Against healthcare peers it looks much cheaper, because the sector median P/E is 29.7 across 217 companies. On an EV/EBITDA of 8.0×, the free cash flow yield of 14 % is more than double the 6.1 % earnings yield, so the stock looks cheaper on cash than on profits. After rising 50 % in 12 months, it sits 22 % below its 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 %. The operating margin holds up better than earnings do. At 15 % over the last 12 months, it is above both fiscal 2025 (14.7 %) and the 2014-2025 average of 14 %, so the drop in EPS does not show up at the operating line. The net margin is a thinner 6 %. ROIC of 11.2 % is 4.9 points above the sector median of 6.3 %, but it has cleared 10 % in only 2 of the last 10 fiscal years, with a low of 7.1 % in 2018.

How strong is the balance sheet?

Debt is the weak point. In fiscal 2025 DaVita carried $181.18 of debt per share against $9.08 of cash, which leaves net debt of $172.10, equal to 92 % of the current share price. Net debt reached 5.4× EBITDA, while the healthcare yardstick treats anything under 2.5× as healthy. The Altman Z-score of 1.6 over the last 12 months is in the distress zone, a warning that matters more in a company this leveraged. Short-term liquidity is adequate, with a current ratio of 1.47, and a Piotroski score of 5 out of 9 points to middling financial health.

What to expect from the next earnings?

DaVita reports on October 28, 2026, and analysts expect EPS of $3.57 for the quarter. That is below the $4.02 it delivered on August 4, 2026, when it beat the $3.88 estimate by 3.6 %. The beat fits a pattern: it has topped EPS estimates in 6 of the last 8 quarters. Full-year expectations are stable, with the 2026 EPS consensus barely moving in 30 days, from $14.85 to $14.83. Of the 23 analysts covering the stock, 10 say buy, 12 say hold and 1 says sell, so most of them are waiting rather than enthusiastic.

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

Healthcare investors watch R&D because a research pipeline is the hidden asset that replaces revenue lost when patents expire. They watch cash flow because it shows whether reported profits are real. On innovation DaVita fails. R&D was 0.0 % of revenue in fiscal 2025, against a healthy level of 15 %, and its 27 % gross margin is far below the 70 % expected of a branded drugmaker. On cash it does well: free cash flow equalled 176 % of net income in fiscal 2025, against a healthy 90 %. EPS growth of 6.1 % a year over 2020-2025 falls short of the 8 % bar.

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.