DaVita 5-Year Buy-And-Hold Strategy Transforms $10K Investment Into Incredible Return
July 12, 2023
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DAVITA ($NYSE:DVA): Investing in DaVita Inc. has proven to be an incredibly lucrative decision over the past five years. If you had invested $10,000 in the company’s stock five years ago and held on to it, you would have seen a tremendous return on your investment. The company provides kidney dialysis services to patients suffering from chronic kidney failure and end stage renal disease. This has resulted in an incredible return on investment for anyone who bought and held DaVita Inc.’s stock for the last five years. The dramatic increase in DaVita Inc.’s stock has been attributed to its successful operational and financial strategies, including its focus on providing high quality care, expanding access to dialysis services, and pursuing growth through acquisitions and strategic partnerships.
The company has also made significant investments in technology, data analytics, and patient experience initiatives that have further driven its growth. Given the tremendous increase in DaVita Inc.’s stock price over the past five years, it is no surprise that a buy-and-hold strategy has resulted in an incredible return on investment for investors. With its commitment to providing high quality care and its successful operational strategies, DaVita is well-positioned for continued success in the future.
Stock Price
Investing $10,000 into the company’s stock five years ago would have resulted in an incredible return. On Tuesday, DaVita Inc. stock opened at $104.0 and closed at $103.1, down by 0.6% from its last closing price of 103.7. Despite the slight dip in share price, the long-term strategy has proven to be a sound investment.
Furthermore, the company has seen significant growth in both their revenue and profits during this period. As the company continues to expand and innovate in the healthcare industry, investors can expect more positive returns in the years ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Davita Inc. More…
| Total Revenues | Net Income | Net Margin |
| 11.67k | 513.83 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Davita Inc. More…
| Operations | Investing | Financing |
| 1.7k | -628.52 | -1.06k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Davita Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.73k | 14.31k | 9.11 |
Key Ratios Snapshot
Some of the financial key ratios for Davita Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.5% | -11.0% | 11.2% |
| FCF Margin | ROE | ROA |
| 9.2% | 105.8% | 4.9% |
Analysis
At GoodWhale, we have conducted a financial analysis of DAVITA INC. Based on our Star Chart, DAVITA INC is classified as an ‘elephant’, indicating that it is rich in assets after deducting off liabilities. Therefore, value investors may be interested in this company. Furthermore, our analysis of DAVITA INC indicates that it has a high health score of 8/10, which indicates that it is capable to sustain future operations in times of crisis. There are some other financial factors to consider when assessing the company. It has strong profitability, but weak asset, dividend, and growth scores. It can be a good target for value investors, although they should also consider its weak asset, dividend, and growth scores before investing. More…
Peers
In the dialysis industry, DaVita Inc. competes with Acadia Healthcare Co Inc, Fresenius Medical Care AG & Co. KGaA, Medical Facilities Corp, and other companies. The company has a network of 2,664 outpatient dialysis centers in the United States that serve approximately 198,000 patients with end-stage renal disease.
– Acadia Healthcare Co Inc ($NASDAQ:ACHC)
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services. It operates a network of behavioral healthcare facilities in the United States, Puerto Rico, and the United Kingdom. The company offers inpatient psychiatric and substance abuse services, residential treatment, outpatient behavioral health services, and specialty behavioral healthcare services.
– Fresenius Medical Care AG & Co. KGaA ($LTS:0H9X)
Fresenius Medical Care AG & Co. KGaA, a renal care company, provides products and services for patients with renal diseases worldwide. The company’s products and services include dialysis machines, dialyzers, and related disposable products, as well as renal pharmaceuticals. It also offers clinical laboratory testing services. The company was founded in 1912 and is headquartered in Bad Homburg vor der Höhe, Germany.
– Medical Facilities Corp ($TSX:DR)
Medical Facilities Corporation is a leading operator of specialty surgical hospitals and ancillary services in the United States. The company owns and operates seven specialty surgical hospitals, one surgical hospital, and three surgical facilities located in Arkansas, Illinois, Louisiana, Mississippi, Oklahoma, and Texas. Medical Facilities Corporation’s hospitals offer a broad range of services, including general surgery, cardiovascular surgery, orthopedic surgery, pain management, gastroenterology, urology, and otolaryngology. The company’s hospitals are accredited by the Joint Commission on Accreditation of Healthcare Organizations and are licensed by the respective state Departments of Health.
Summary
Investing in DaVita Inc. has proven to be a successful strategy for long-term investors. Fundamental analysis of DaVita Inc. reveals a healthy balance sheet, with low debt levels, strong cash flow and a steady stream of revenue. The company is also seeing strong growth in its customer base, with an improving competitive landscape.
DaVita Inc. has also been successful in executing strategic acquisitions that have helped to drive its growth and profitability. Altogether, DaVita Inc. is a good choice for investors looking for long-term gains.
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