DaVita Inc (DVA, Financial), a leading player in the Healthcare Providers & Services industry, is currently trading at $108.76 with a market capitalization of $9.86 billion. The stock has seen a gain of 7.09% today and an impressive 8.15% over the past four weeks. In this article, we will delve into the company's GF Score and what it indicates about the stock's performance potential.
Understanding DaVita Inc's GF Score
DaVita Inc's GF Score stands at 90 out of 100, placing it in the category of stocks with good outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally indicates higher returns. 
Financial Strength Analysis
DaVita Inc's Financial Strength rank is 3 out of 10. This rank measures the strength of a company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. DaVita Inc's interest coverage stands at 3.35, indicating its ability to cover interest expenses on outstanding debt. Its debt to revenue ratio is 0.99, and its Altman Z-Score is 1.40, suggesting that the company's financial situation is currently weak.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, indicating high profitability. This rank is based on factors such as operating margin, Piotroski F-Score, trend of the operating margin, consistency of profitability, and predictability rank. DaVita Inc's operating margin is 11.03%, and its Piotroski F-Score is 6, suggesting a healthy profitability.
Growth Rank Analysis
DaVita Inc's Growth Rank is 9 out of 10, indicating strong growth potential. This rank measures the growth of a company in terms of its revenue and profitability. The company's 5-year revenue growth rate is 16.80%, and its 3-year revenue growth rate is 17.80%, demonstrating consistent growth.
GF Value Rank Analysis
The company's GF Value Rank is 9 out of 10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
DaVita Inc's Momentum Rank is 9 out of 10, indicating strong momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitive Analysis
When compared to its competitors in the same industry, DaVita Inc holds a competitive position. Universal Health Services Inc (UHS, Financial) has a GF Score of 94, Chemed Corp (CHE, Financial) has a GF Score of 93, and Agilon Health Inc (AGL, Financial) has a GF Score of 19. More details about the competitors can be found here.
Conclusion
In conclusion, DaVita Inc's high GF Score of 90 indicates good outperformance potential. Despite its relatively weak financial strength, the company's high profitability, growth, GF Value, and momentum ranks suggest that it could be a good investment choice. However, investors should also consider the company's competitive position and other market factors before making an investment decision.
