FRESENIUS MEDICAL CARE AG (FME.DE) Stock Fundamental Analysis
FRA:FME - Deutsche Boerse Ag - DE0005785802 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to FME. FME was compared to 503 industry peers in the Health Care Providers & Services industry. FME has an average financial health and profitability rating. FME has a correct valuation and a medium 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
FME has a Return On Assets (1.89%) which is in line with its industry peers.
FME has a Return On Equity of 4.30%. This is comparable to the rest of the industry: FME outperforms 46.15% of its industry peers.
FME's Return On Invested Capital of 3.60% is in line compared to the rest of the industry. FME outperforms 46.15% of its industry peers.
FME had an Average Return On Invested Capital over the past 3 years of 3.14%. This is significantly below the industry average of 13.71%.
The last Return On Invested Capital (3.60%) for FME is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROIC | 3.6% |
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
With a Profit Margin value of 3.17%, FME perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
FME's Profit Margin has declined in the last couple of years.
FME has a Operating Margin (7.17%) which is comparable to the rest of the industry.
FME's Operating Margin has declined in the last couple of years.
FME has a Gross Margin of 24.45%. This is comparable to the rest of the industry: FME outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of FME has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FME 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
FME has an Altman-Z score of 2.21. This is not the best score and indicates that FME is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.21, FME is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of FME is 6.44, which is on the high side as it means it would take FME, 6.44 years of fcf income to pay off all of its debts.
FME has a Debt to FCF ratio of 6.44. This is in the better half of the industry: FME outperforms 73.08% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that FME is somewhat dependend on debt financing.
FME has a better Debt to Equity ratio (0.67) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.53
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FME should not have too much problems paying its short term obligations.
FME has a Current ratio of 1.46. This is in the better half of the industry: FME outperforms 69.23% of its industry peers.
A Quick Ratio of 1.08 indicates that FME should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.08, FME is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.40%, which is quite good.
Measured over the past years, FME shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.43% on average per year.
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
FME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.51% yearly.
FME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.72% yearly.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y10.51%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.72%
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
A Price/Earnings ratio of 14.30 indicates a correct valuation of FME.
Compared to the rest of the industry, the Price/Earnings ratio of FME indicates a somewhat cheap valuation: FME is cheaper than 73.08% of the companies listed in the same industry.
FME's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of FME can be described as reasonable.
76.92% of the companies in the same industry are more expensive than FME, based on the Price/Forward Earnings ratio.
FME is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FME is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, FME is valued a bit more expensive than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.23 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
FME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FME's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FME has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.44, FME pays a better dividend. On top of this FME pays more dividend than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, FME pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
The dividend of FME has a limited annual growth rate of 0.31%.
Dividend Growth(5Y)0.31%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
56.48% of the earnings are spent on dividend by FME. This is a bit on the high side, but may be sustainable.
The dividend of FME is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.48%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
FRA:FME (6/20/2025, 5:36:15 PM)
46.49
+0.39 (+0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners37.52%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.28B
Analysts65.6
Price Target50.91 (9.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend1.19
Dividend Growth(5Y)0.31%
DP56.48%
Div Incr Years1
Div Non Decr Years2
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)7.15%
PT rev (3m)10.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.6%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 11.37 | ||
| P/S | 1.4 | ||
| P/FCF | 16.23 | ||
| P/OCF | 11.27 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.95 |
EPS(TTM)3.25
EY6.99%
EPS(NY)4.09
Fwd EY8.79%
FCF(TTM)2.86
FCFY6.16%
OCF(TTM)4.13
OCFY8.88%
SpS33.22
BVpS24.49
TBVpS-2.72
PEG (NY)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROCE | 5.12% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 9.93% | ||
| OM | 7.17% | ||
| 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 | 3.18 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.67 | ||
| Cash Conversion | 80.12% | ||
| Profit Quality | 271.95% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.21 |
F-Score6
WACC6.82%
ROIC/WACC0.53
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 5Y10.51%
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 5Y3.72%
EBIT growth 1Y8.98%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y18.82%
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%