DaVita Inc (DVA) stock analysis
DaVita Inc (DVA) clears 4 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 4 of 5 Lynch-style checks. At $186.10 it trades 58.2% below this site's neutral DCF value (a margin of safety of +58.2%). Its earnings quality rates Strong and it returns +10.2% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does DaVita do?
DaVita runs outpatient dialysis centers, treating patients with kidney failure in the United States and abroad.
What stands out about DaVita?
- The share price implies shrinking cash flow. At $186.10, DVA's free cash flow of $26.08 per share would have to shrink 13.0% a year at first, then recover to 2.5% growth by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8% growth, so the price asks for less growth than the baseline. Change the assumptions.
- Misses 2 of the 8 value filters. It fails Market Cap > $25B ($11.5B) and Price/Book < 8 (94.83); the other 4 pass and 2 were not evaluated. See every filter.
- Strongest against peers: free-cash-flow yield. At 14.0% (peer median 5.5%) it ranks 2nd of 34 among health care stocks this site tracks. See the ranking.
- Weakest against peers: debt / equity. At 77.99 (peer median 0.69) it ranks 33rd of 34 among health care stocks this site tracks. See the ranking.
- Short interest is elevated. 15.2% of the float is sold short, 6.5 days to cover, above this site's 5% flag. See the figures.
How has DaVita's share price moved?
The interactive price chart needs JavaScript.
Is DaVita undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +58.2%
- P/E vs. its own history 13.6x · near the expensive end Real range: 11.5x–14.1x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.54/5 13 analysts this month: 1 strong buy, 6 buy, 5 hold, 1 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 1.14 · Grey zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.70 · accruals −6.6% of assets · 251% of profit arrived as cash · stock comp 1.0% of revenue · share count −9.8% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +10.2% net Latest fiscal year (2025): dividends 0.0% + buybacks 11.4% − stock comp 1.2%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 61%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) None needed · capital fell while profit grew · but only 17% return on capital Operating profit $1.8B → $1.9B, capital needed $13B → $11B, 2016–2025 (3-year averages); return on capital now 17% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 0.90 · About fair P/E 13.6× ÷ 15.0% a year of growth behind it. 77th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light Capital-light growth: not cleared (profit grew 1.1×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 3 of 6 measures above the median Compared with the 33 other health care stocks this site tracks: 3 in the top third, 2 in the bottom third.
How does DaVita compare with its peers?
3 of 6 measures sit above the median of the 33 other health care stocks tracked here, 3 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 24.6× 13.6× ✓4th of 32
- Free-cash-flow yieldhigher is cheaper · peer median 5.5% 14.0% ✓2nd of 34
- Return on equityhigher is better · peer median 15% 181% ✓2nd of 34
- Net marginhigher is better · peer median 9.3% 6.0% –22nd of 34
- Revenue growthhigher is better, year on year · peer median 8.6% 6.5% ✕25th of 34
- Debt / equitylower is safer · peer median 0.69 77.99 ✕33rd of 34
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and DVA doesn't clear enough of it yet. In its favor: DVA is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, has grown earnings per share at a solid clip over five years, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: DVA carries more debt relative to equity than he typically tolerates, runs thinner pretax margins than he'd like to see, and doesn't cover its interest expense as comfortably as he'd want.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✕
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and DVA falls short of his bar. In its favor: DVA clears his signature PEG-under-1 test: growth at a reasonable price, is growing earnings at the steady 10-20% pace of a proper Stalwart, isn't asking investors to overpay for that growth, and is backing its growth up with real free cash flow. Where it comes up short: DVA carries more debt than he liked to see, even allowing for the extra room a large, stable business gets.
- PEG < 1 ✓
- EPS growth 10%-20% ✓
- Debt/Equity < 0.6 ✕
- P/E < 27 ✓
- Price/FCF < 30 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does DaVita pass?
- Market Cap > $25B $11.5B
- Trailing P/E < 25 13.55
- PEG Ratio < 1.5 0.90
- Price/Book < 8 94.83
- Price/Sales < 7 0.82
- EPS Growth YoY > -5% +55.8%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is DaVita's margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is DaVita in its 52-week range?
What is the short interest in DaVita?
5,149,484 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with DaVita? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +75%
- Short interest under 5% of float 15.2%
- Passes most of the 6 fundamental filters 4/6 passed
- Price run-up backed by value, not just momentum +78% off 52wk low
- Debt/equity stable since 2016 1.96 → 77.99
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have DaVita shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from DVA's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do DaVita's 10-year financials show?
From DVA's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about DaVita
What kind of company is DaVita?
DaVita runs outpatient dialysis centers, treating patients with kidney failure in the United States and abroad. This site groups it with Health Care stocks.
Is DaVita trading above or below its DCF value?
At $186.10, DVA trades 58.2% below this site's neutral DCF value of $445.39 per share, a margin of safety of +58.2%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does DaVita pass?
DVA passes 4 of 8. It passes Trailing P/E < 25 (13.55), PEG Ratio < 1.5 (0.90), Price/Sales < 7 (0.82) and EPS Growth YoY > -5% (+55.8%). It misses Market Cap > $25B ($11.5B) and Price/Book < 8 (94.83). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Which well-known investors own DaVita?
Among the investors whose SEC 13F filings this site tracks, Warren Buffett (2.1% of the portfolio; unchanged) held DVA as of June 30, 2026. 13F filings cover only US-listed equities and arrive up to 45 days after the quarter ends, so they lag the real portfolios. See Superinvestors.
When does DaVita report earnings next?
DaVita's next earnings report is expected on October 29, 2026 after the market closes, with analysts expecting earnings of $3.64 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 3 times, by an average of −1.4%.
How heavily is DaVita stock sold short?
As of September 30, 2026, 15.2% of DVA's float was sold short (5,149,484 shares, 6.5 days to cover), up 19.8% from the prior reporting period. FINRA publishes short interest twice a month, so it changes about every two weeks; this site flags anything above 5% of the float.
Where do these numbers come from?
- Financial statements: DaVita's 10-K annual report for the year ended Dec 31, 2025, filed Feb 11, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this DaVita Inc analysis
This page shows every value-investing check the site runs on DaVita Inc (DVA) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.