DaVita (DVA)
NYSEHealth CareMedical Care FacilitiesSnapshot 2026-07-08
$230.59-1.59%
Close 2026-07-08 · 1-day change
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Track DVA free→DaVita grows revenue about 4% a year as dialysis demand stays steady. Profit margins remain stable with operating income supported by AI tools and center reopenings. Free cash flow improves toward $1.0-$1.25 billion in 2026. The stock trades cheap versus peers with a PE near 20 and strong buyback programs.
Growth could slow if reimbursement rates tighten or regulatory risks rise. Free cash flow may lag the $1 billion target. Rising debt from recent financial obligations could pressure capital allocation. Valuation may stay capped if earnings disappoint.
The price is about 38% below our $375 fair value, reflecting a justified discount. Analysts expect roughly 4% revenue growth, which aligns with our view, but the market undervalues DaVita versus peers.
Breaks if: Free cash flow falls below $1.0 billion in FY26
DaVita is focused on achieving its free cash flow guidance for the fiscal year 2026.
Stated in 3 of last 3 quarters. Free cash flow was $140 million in 2026-Q1, indicating limited progress towards the annual guidance of $1,000 to $1,250 million. The trajectory shows a need for improvement to meet the target.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Guidance: 'Free cash flow $1,000 $1,250.'”
“Guidance: 'Free cash flow $1,000 $1,250.'”
“Guidance: 'Free cash flow $1,000 $1,250.'”
Breaks if: Operating income declines materially despite AI and center reopenings
Breaks if: YoY revenue growth falls below 3.8% in FY26
Breaks if: PE rises above 26.6 without earnings growth justification