# DaVita HealthCare Partners (DVA.US)

Canonical: https://gigainvestors.com/s/DVA

Analysis as of: 2026-10-16T07:28:07.927Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $189.16 per share; close as of 2026-10-15.

Estimated value: low $168.48 per share, central $190.82 per share, high $220.57 per share. Buy at or below the central value $190.82 per share. Valuation as of 2026-10-16T07:28:07.927Z; scenarios are not confidence intervals.

Expected annual return: 10.1% at the stated quote. About 10.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.17×

- FY2018: 0.13×

- FY2019: 0.14×

- FY2020: 0.15×

- FY2021: 0.15×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.16×

- FY2025: 0.15×

### moat: pass

- ROIC, median of available years: 22.3%

- ROIC, second-lowest year: 20.3%

- Typical minus recent gross margin: 3.1 pp

- Typical gross margin (annual median): 30.1%

- Recent gross margin (lower of latest and 3-year median): 27.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.6%

- ROIC including acquisitions, ten-year median: 6.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.6%

- FY2017: 20.3%

- FY2018: 17.3%

- FY2019: 21.9%

- FY2020: 22.7%

- FY2021: 27.6%

- FY2022: 20.7%

- FY2023: 27.9%

- FY2024: 43.1%

- FY2025: 39.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.5B

- Net income, five-year total: $3.9B

- Return on incremental invested capital: 115.7%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 17.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.23×

- FY2023: 1.19×

- FY2024: 1.13×

- FY2025: 1.19×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.3% vs 39.5%

- Per-share earnings: 3.47 to 9.84 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -9.9%

- Ordinary dilution, 5-year annual growth: -9.2%

- Market cap gain: -$4.7B

- Cumulative retained earnings: -$4.0B

- Diluted shares, 10-year annual growth: -9.9%

- Diluted shares, 5-year annual growth: -9.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.9%

- Per-share value change: $6.37

- Per-share value, starting three-year median: $3.47

- Per-share value, ending three-year median: $9.84

- Buybacks concentrated in cheaper years (correlation): 0.62

- Average buyback yield: 12.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.7B

- Cumulative net income, 10 years: $7.2B

- ROIC, first three-year median: 20.3%

- ROIC, last three-year median: 39.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.29

- FY2017: $3.47

- FY2018: $0.92

- FY2019: $5.27

- FY2020: $6.31

- FY2021: $8.90

- FY2022: $5.85

- FY2023: $7.42

- FY2024: $10.73

- FY2025: $9.84

### accounting: pass

- Sloan accruals: -6.5%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.53×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 6.70×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.8%

- FY2017: -6.6%

- FY2018: -8.4%

- FY2019: -7.3%

- FY2020: -7.1%

- FY2021: -5.6%

- FY2022: -5.9%

- FY2023: -8.1%

- FY2024: -6.3%

- FY2025: -6.5%

## Holders

- [Warren Buffett](https://gigainvestors.com/BRK): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 21% since Jul 2026 · "DaVita misses quarterly profit estimates on rising costs, lower volumes" (ca.finance.yahoo.com, Oct 2025) · sales +6.5%

Story as of 2026-10-16T09:58:39.757Z; price observation 2026-10-15.

Price needs cash profits to grow 0.8% a year for ten years

- 2025-05-13: DaVita Stock Down Despite Q1 Earnings Beat, Margins Contract ([finance.yahoo.com](https://finance.yahoo.com/news/davita-stock-down-despite-q1-161500406.html))

- 2025-08-13: DVA Q2 Deep Dive: Cyber Incident Drives Volume Headwinds as Cost Controls Support Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/dva-q2-deep-dive-cyber-035120179.html))

- 2025-10-29: DaVita misses quarterly profit estimates on rising costs, lower volumes ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/davita-misses-quarterly-profit-estimates-213311955.html))

- 2026-02-03: DaVita Q4 Revenue Up 10%; Announces Strategic Investment In Elara Caring ([nasdaq.com](https://www.nasdaq.com/articles/davita-q4-revenue-10-announces-strategic-investment-elara-caring))

- 2026-05-07: DaVita (DVA) Is Up 27.6% After Boosting 2026 EPS Guidance On Strong Q1 Results ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/davita-dva-27-6-boosting-191943978.html))

- 2026-08-05: DaVita Stock Down in Pre-Market Despite Q2 Earnings Beat, Margins Down ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/davita-stock-down-pre-market-180500289.html))

### Sales · FY2024–2025

sales +6.5%; source https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm; observed 2026-02-11.

- FY2016: $15B 

- FY2017: $11B 

- FY2018: $11B 

- FY2019: $11B 

- FY2020: $12B 

- FY2021: $12B 

- FY2022: $12B 

- FY2023: $12B 

- FY2024: $13B 

- FY2025: $14B 

### Gross margin · FY2025

gross margin 27%; source https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm; observed 2026-02-11.

- FY2016: 22.2% 

- FY2017: 29.8% 

- FY2018: 28.1% 

- FY2019: 30.5% 

- FY2020: 30.8% 

- FY2021: 31.4% 

- FY2022: 29.3% 

- FY2023: 31.5% 

- FY2024: 32.9% 

- FY2025: 27.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 13.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm (filed 2026-02-11); FY2025: revenue 13643069000; grossProfit 3684245000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DVA.US: DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis dialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.

### Why customers stay

Margins ranged from 27% to 32.9% during 2023–25; it earns 22.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: grossProfit / revenue = 31.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: grossProfit / revenue = 32.9%.

- Source: https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm (filed 2026-02-11); FY2025: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); 10-year return on capital observations [[2016,0.21594686022640003],[2017,0.20298707332251142],[2018,0.17321912191238872],[2019,0.21887918541300244],[2020,0.22718712445476066],[2021,0.27581174412926346],[2022,0.20725579788091267],[2023,0.2791312396374111],[2024,0.4307005081947195],[2025,0.39549525705806815]]; median 0.22303315493388154. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 1.8 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2016: growth capex 108843000; upkeep 720252000; owner earnings 879874000. Growth capex / owner earnings = 0.12370293928448846.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2017: growth capex 0; upkeep 905250000; owner earnings 535853000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2019: growth capex 0; upkeep 766546000; owner earnings 659587000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2020: growth capex 44106000; upkeep 630435000; owner earnings 773642000. Growth capex / owner earnings = 0.05701086549075671.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2021: growth capex 0; upkeep 641465000; owner earnings 1010062080.1774606. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2022: growth capex 0; upkeep 603429000; owner earnings 689573000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2023: growth capex 0; upkeep 567985000; owner earnings 819770359.6738901. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); FY2024: growth capex 0; upkeep 555443000; owner earnings 1062424390.3138709. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm (filed 2026-02-11); FY2025: growth capex 0; upkeep 575864000; owner earnings 886287000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Dividend observations: [[2016,192401000],[2017,211467000],[2018,196441000],[2019,11382000],[2020,253118000],[2021,244033000],[2022,267946000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm (filed 2026-02-11); FY2025: cash repurchases 1792999000 USD.

### Are managers owners

Insiders own 46.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DVA.US SharesStats.PercentInsiders = 46.909 percentage points; cache date 2026-10-16.

### What could break it

"If the number or percentage of patients with higher-paying commercial insurance declines" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm (filed 2026-02-11); If the number or percentage of patients with higher-paying commercial insurance declines

### What the price says

The price assumes cash profits grow 0.8% yearly over ten years; actual growth was 25.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-11); Ten-year compound average after fade. Initial solved rate -0.0016110638901705113. Price 189.16; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.2473051843677774 → FY2025 11.67934374382289. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $58.62 per share

- 2016-11: $63.35 per share

- 2016-12: $64.20 per share

- 2017-01: $63.75 per share

- 2017-02: $69.41 per share

- 2017-03: $67.97 per share

- 2017-04: $69.01 per share

- 2017-05: $66.26 per share

- 2017-06: $64.76 per share

- 2017-07: $64.78 per share

- 2017-08: $58.56 per share

- 2017-09: $59.39 per share

- 2017-10: $60.74 per share

- 2017-11: $61.06 per share

- 2017-12: $72.25 per share

- 2018-01: $78.04 per share

- 2018-02: $72.02 per share

- 2018-03: $65.94 per share

- 2018-04: $62.79 per share

- 2018-05: $66.84 per share

- 2018-06: $69.44 per share

- 2018-07: $70.28 per share

- 2018-08: $69.29 per share

- 2018-09: $71.63 per share

- 2018-10: $67.34 per share

- 2018-11: $66.06 per share

- 2018-12: $51.46 per share

- 2019-01: $56.13 per share

- 2019-02: $56.90 per share

- 2019-03: $54.29 per share

- 2019-04: $55.24 per share

- 2019-05: $43.42 per share

- 2019-06: $56.26 per share

- 2019-07: $59.85 per share

- 2019-08: $56.37 per share

- 2019-09: $57.07 per share

- 2019-10: $58.60 per share

- 2019-11: $71.77 per share

- 2019-12: $75.03 per share

- 2020-01: $79.87 per share

- 2020-02: $77.62 per share

- 2020-03: $76.06 per share

- 2020-04: $79.01 per share

- 2020-05: $80.96 per share

- 2020-06: $79.14 per share

- 2020-07: $87.39 per share

- 2020-08: $86.76 per share

- 2020-09: $85.65 per share

- 2020-10: $86.25 per share

- 2020-11: $109.85 per share

- 2020-12: $117.40 per share

- 2021-01: $117.37 per share

- 2021-02: $102.13 per share

- 2021-03: $107.77 per share

- 2021-04: $116.53 per share

- 2021-05: $120.07 per share

- 2021-06: $120.43 per share

- 2021-07: $120.25 per share

- 2021-08: $130.77 per share

- 2021-09: $116.26 per share

- 2021-10: $103.24 per share

- 2021-11: $94.50 per share

- 2021-12: $113.76 per share

- 2022-01: $108.37 per share

- 2022-02: $112.77 per share

- 2022-03: $113.11 per share

- 2022-04: $108.37 per share

- 2022-05: $97.49 per share

- 2022-06: $79.96 per share

- 2022-07: $84.16 per share

- 2022-08: $85.29 per share

- 2022-09: $82.77 per share

- 2022-10: $73.01 per share

- 2022-11: $73.73 per share

- 2022-12: $74.67 per share

- 2023-01: $82.39 per share

- 2023-02: $82.26 per share

- 2023-03: $81.11 per share

- 2023-04: $90.36 per share

- 2023-05: $93.67 per share

- 2023-06: $100.47 per share

- 2023-07: $101.99 per share

- 2023-08: $102.42 per share

- 2023-09: $94.53 per share

- 2023-10: $77.23 per share

- 2023-11: $101.46 per share

- 2023-12: $104.76 per share

- 2024-01: $108.16 per share

- 2024-02: $126.97 per share

- 2024-03: $138.05 per share

- 2024-04: $139.01 per share

- 2024-05: $147.12 per share

- 2024-06: $138.57 per share

- 2024-07: $136.62 per share

- 2024-08: $150.92 per share

- 2024-09: $163.93 per share

- 2024-10: $139.81 per share

- 2024-11: $166.17 per share

- 2024-12: $149.55 per share

- 2025-01: $176.20 per share

- 2025-02: $147.88 per share

- 2025-03: $152.97 per share

- 2025-04: $141.55 per share

- 2025-05: $136.26 per share

- 2025-06: $142.45 per share

- 2025-07: $140.37 per share

- 2025-08: $137.76 per share

- 2025-09: $132.87 per share

- 2025-10: $119.02 per share

- 2025-11: $119.68 per share

- 2025-12: $113.61 per share

- 2026-01: $109.34 per share

- 2026-02: $156.30 per share

- 2026-03: $153.69 per share

- 2026-04: $155.14 per share

- 2026-05: $194.36 per share

- 2026-06: $222.48 per share

- 2026-07: $240.09 per share

- 2026-08: $176.01 per share

- 2026-09: $174.92 per share

- 2026-10: $189.16 per share

## Annual estimated value (USD per share)

- FY2016: low $55.11 per share, central $70.43 per share, high $81.60 per share

- FY2017: low $35.20 per share, central $39.81 per share, high $45.95 per share

- FY2018: low $36.20 per share, central $41.11 per share, high $47.65 per share

- FY2019: low $45.63 per share, central $51.13 per share, high $58.45 per share

- FY2020: low $65.64 per share, central $81.49 per share, high $94.97 per share

- FY2021: low $75.21 per share, central $93.81 per share, high $109.20 per share

- FY2022: low $83.49 per share, central $100.05 per share, high $116.40 per share

- FY2023: low $102.64 per share, central $124.43 per share, high $144.82 per share

- FY2024: low $116.34 per share, central $135.25 per share, high $156.48 per share

- FY2025: low $138.33 per share, central $156.63 per share, high $180.98 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:49.333Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/927066/000092706626000012/dva-20251231.htm); period 2025-12-31, filed 2026-02-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.