FRESENIUS MEDICAL CARE AG (FME.DE) Stock Fundamental Analysis
FRA:FME - Deutsche Boerse Ag - DE0005785802 - Common Stock - Currency: EUR
Taking everything into account, FME scores 4 out of 10 in our fundamental rating. FME was compared to 25 industry peers in the Health Care Providers & Services industry. FME has only an average score on both its financial health and profitability. FME is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FME was profitable.
In the past year FME had a positive cash flow from operations.
Each year in the past 5 years FME has been profitable.
In the past 5 years FME always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.89%, FME perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.30%, FME is doing worse than 60.00% of the companies in the same industry.
With a Return On Invested Capital value of 3.43%, FME perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FME is below the industry average of 6.33%.
The 3 year average ROIC (3.14%) for FME is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROIC | 3.43% |
ROA(3y)1.65%
ROA(5y)2.29%
ROE(3y)4.06%
ROE(5y)6.04%
ROIC(3y)3.14%
ROIC(5y)4%
1.3 Margins
Looking at the Profit Margin, with a value of 3.17%, FME is in line with its industry, outperforming 52.00% of the companies in the same industry.
FME's Profit Margin has declined in the last couple of years.
FME has a Operating Margin of 6.83%. This is comparable to the rest of the industry: FME outperforms 48.00% of its industry peers.
In the last couple of years the Operating Margin of FME has declined.
FME has a Gross Margin (24.45%) which is in line with its industry peers.
FME's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 3.17% | ||
| GM | 24.46% |
OM growth 3Y-13.44%
OM growth 5Y-12.95%
PM growth 3Y-20.33%
PM growth 5Y-16.53%
GM growth 3Y-3.16%
GM growth 5Y-4.44%
2. Health
2.1 Basic Checks
FME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FME remains at a similar level compared to 1 year ago.
The number of shares outstanding for FME has been reduced compared to 5 years ago.
The debt/assets ratio for FME has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that FME is not a great score, but indicates only limited risk for bankruptcy at the moment.
FME has a Altman-Z score of 2.28. This is in the better half of the industry: FME outperforms 72.00% of its industry peers.
FME has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as FME would need 6.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.44, FME is doing good in the industry, outperforming 68.00% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that FME is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.67, FME is doing good in the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.59
WACC5.8%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FME should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, FME is doing good in the industry, outperforming 72.00% of the companies in the same industry.
FME has a Quick Ratio of 1.08. This is a normal value and indicates that FME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, FME is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% over the past year.
The Earnings Per Share has been decreasing by -6.43% on average over the past years.
Looking at the last year, FME shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
FME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.04% yearly.
EPS 1Y (TTM)13.4%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%0%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%3.31%
3.2 Future
The Earnings Per Share is expected to grow by 9.10% on average over the next years. This is quite good.
FME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y9.1%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.39, the valuation of FME can be described as correct.
FME's Price/Earnings ratio is in line with the industry average.
FME's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 12.24, which indicates a correct valuation of FME.
FME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FME is cheaper than 64.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FME to the average of the S&P500 Index (22.15), we can say FME is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
72.00% of the companies in the same industry are cheaper than FME, based on the Enterprise Value to EBITDA ratio.
64.00% of the companies in the same industry are cheaper than FME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
FME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FME's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FME has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
FME's Dividend Yield is a higher than the industry average which is at 2.80.
FME's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of FME has a limited annual growth rate of 0.31%.
Dividend Growth(5Y)0.31%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
FME pays out 56.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
FME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.48%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
FRA:FME (5/30/2025, 7:00:00 PM)
50.02
-0.36 (-0.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners36.63%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.35B
Analysts66.15
Price Target47.52 (-5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.19
Dividend Growth(5Y)0.31%
DP56.48%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.59%
Min EPS beat(2)15.03%
Max EPS beat(2)24.14%
EPS beat(4)4
Avg EPS beat(4)16.92%
Min EPS beat(4)2.71%
Max EPS beat(4)25.81%
EPS beat(8)7
Avg EPS beat(8)15.65%
EPS beat(12)9
Avg EPS beat(12)11.82%
EPS beat(16)12
Avg EPS beat(16)9%
Revenue beat(2)2
Avg Revenue beat(2)4.39%
Min Revenue beat(2)2.74%
Max Revenue beat(2)6.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-4.95%
Max Revenue beat(4)6.05%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.31%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-1.18%
PT rev (3m)6.32%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)9.53%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.24 | ||
| P/S | 1.51 | ||
| P/FCF | 17.46 | ||
| P/OCF | 12.12 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.99 |
EPS(TTM)3.25
EY6.5%
EPS(NY)4.09
Fwd EY8.17%
FCF(TTM)2.86
FCFY5.73%
OCF(TTM)4.13
OCFY8.25%
SpS33.22
BVpS24.49
TBVpS-2.72
PEG (NY)1.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROCE | 4.88% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 9.45% | ||
| OM | 6.83% | ||
| PM (TTM) | 3.17% | ||
| GM | 24.46% | ||
| FCFM | 8.62% |
ROA(3y)1.65%
ROA(5y)2.29%
ROE(3y)4.06%
ROE(5y)6.04%
ROIC(3y)3.14%
ROIC(5y)4%
ROICexc(3y)3.31%
ROICexc(5y)4.22%
ROICexgc(3y)8.52%
ROICexgc(5y)10.56%
ROCE(3y)4.51%
ROCE(5y)5.77%
ROICexcg growth 3Y-7.67%
ROICexcg growth 5Y-10.05%
ROICexc growth 3Y-10.35%
ROICexc growth 5Y-11.48%
OM growth 3Y-13.44%
OM growth 5Y-12.95%
PM growth 3Y-20.33%
PM growth 5Y-16.53%
GM growth 3Y-3.16%
GM growth 5Y-4.44%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 81.95% | ||
| Profit Quality | 271.95% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.28 |
F-Score6
WACC5.8%
ROIC/WACC0.59
Cap/Depr(3y)41.32%
Cap/Depr(5y)47.87%
Cap/Sales(3y)3.79%
Cap/Sales(5y)4.49%
Profit Quality(3y)300.36%
Profit Quality(5y)267.36%
High Growth Momentum
Growth
EPS 1Y (TTM)13.4%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%0%
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y9.1%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%3.31%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.73%
EBIT growth 1Y3.71%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y17.68%
FCF growth 1Y13.63%
FCF growth 3Y1.25%
FCF growth 5Y3.45%
OCF growth 1Y12.56%
OCF growth 3Y-1.4%
OCF growth 5Y-1.45%