DAVITA INC.
$174.56
+0.49 (+0.28%) · delayed · Nov 13, 2026
Five-year price
52w $101.00 to $247.49
- Market cap
- $13.2B
- Enterprise value
- $22.7B
- P/E
- 17.7×
- 18.7× on 3y avg EPS
- EV / EBIT
- 11.1×
- FCF yield
- 9.9%
- ROIC
- 18.1%
- Debt / equity
- —
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 16.1%
- ●ROE > 15% (5y avg)5y avg ROE 261.7%
- ●Stable operating marginsMargin volatility 1.7% (σ, 5y)
- ●Earnings convert to cashFCF / net income 170% (5y avg)
- ●Growing revenueRevenue CAGR 5y 3.4%
- ●Shrinking share countDiluted shares -38.1% over 5y
Value
67
- ○P/E below 15P/E 17.7
- ●EV/EBIT below 12EV/EBIT 11.1
- ●FCF yield above 6%FCF yield 9.9%
- –Price below Graham NumberGraham Number n/a
- –P/B below 3P/B n/a
Safety
25
- –Debt / equity below 0.5D/E n/a
- ○Debt payable in < 4 yrs of earningsNet debt $9.5B
- ○Interest coverage > 8xCoverage 4.0x
- ○Current ratio > 1.5Current ratio 1.29
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
50
- ●Adequate size (revenue > $2B)Revenue $13.6B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.29
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 222%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 18.7
- –P/E × P/B ≤ 22.5Product n/a
Valuation lab
What do you have to believe?
At $174.56, the market is pricing in about 3.8% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $9.5B · 76M shares · 5y revenue CAGR 3.4%
Intrinsic value
$157.76
Price
$174.56
Premium paid
11%
What the price implies
The market is paying for 3.8% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
55% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 10,707 | 10,877 | 11,405 | 11,388 | 11,551 | 11,619 | 11,610 | 12,140 | 12,816 | 13,643 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 2,030 | 1,813 | 1,526 | 1,643 | 1,695 | 1,797 | 1,339 | 1,603 | 2,090 | 2,044 |
| Operating margin | 19.0% | 16.7% | 13.4% | 14.4% | 14.7% | 15.5% | 11.5% | 13.2% | 16.3% | 15.0% |
| Pre-tax income | 1,623 | 1,400 | 1,048 | 1,195 | 1,318 | 1,518 | 966 | 1,177 | 1,530 | 1,347 |
| Income tax | 432 | 324 | 258 | 280 | 314 | 307 | 198 | 220 | 280 | 293 |
| Net income | 880 | 664 | 159 | 811 | 774 | 978 | 560 | 692 | 936 | 747 |
| EPS (diluted) | 4.29 | 3.47 | 0.92 | 5.27 | 6.31 | 8.90 | 5.85 | 7.42 | 10.73 | 9.84 |
| Diluted shares | 205 | 191 | 172 | 154 | 123 | 110 | 96 | 93 | 87 | 76 |
Who owns it