DaVita (DVA) is a leading provider of kidney dialysis services in the U.S. for patients suffering from chronic kidney failure, also known as end stage renal disease. The company has everything an investor could look for, high returns on equity, a strong competitive position and excellent capital allocation. However, secular headwinds have gradually eroded the attractiveness of this business over time and the company looks like it is going to continue struggling.
DaVita has a whopping 37% share of the U.S. dialysis market based upon the number of patients they serve. They