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 5 out of 10 in our fundamental rating. FME was compared to 25 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of FME get a neutral evaluation. Nothing too spectacular is happening here. FME has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FME was profitable.
FME had a positive operating cash flow in the past year.
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 (4.30%) which is comparable to the rest of the industry.
FME has a Return On Invested Capital (3.60%) which is comparable to the rest of the industry.
FME had an Average Return On Invested Capital over the past 3 years of 3.14%. This is below the industry average of 5.78%.
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
The Profit Margin of FME (3.17%) is better than 64.00% of its industry peers.
FME's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.17%, FME perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FME has declined.
With a Gross Margin value of 24.45%, FME perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
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.
FME has less shares outstanding than it did 5 years ago.
FME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.20 indicates that FME is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FME (2.20) is better than 76.00% of its industry peers.
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's Debt to FCF ratio of 6.44 is fine compared to the rest of the industry. FME outperforms 72.00% of its industry peers.
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 | 2.2 |
ROIC/WACC0.63
WACC5.69%
2.3 Liquidity
FME has a Current Ratio of 1.46. This is a normal value and indicates that FME is financially healthy and should not expect problems in meeting 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.
A Quick Ratio of 1.08 indicates that FME should not have too much problems paying 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 64.00% 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.
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.
FME shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
Measured over the past years, FME shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
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 12.89% 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 3.74% yearly.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y12.89%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.74%
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
FME is valuated correctly with a Price/Earnings ratio of 13.85.
Based on the Price/Earnings ratio, FME is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
FME is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
FME is valuated reasonably with a Price/Forward Earnings ratio of 11.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FME indicates a somewhat cheap valuation: FME is cheaper than 64.00% of the companies listed in the same industry.
FME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FME indicates a slightly more expensive valuation: FME is more expensive than 68.00% of the companies listed in the same industry.
76.00% 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 | 15.71 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.99
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FME has a Yearly Dividend Yield of 3.09%.
Compared to an average industry Dividend Yield of 2.87, FME pays a better dividend. On top of this FME pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, FME pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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.
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 (7/25/2025, 7:00:00 PM)
45.01
-0.78 (-1.7%)
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 Cap26.41B
Analysts65.6
Price Target51.5 (14.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)2.61%
PT rev (3m)7.11%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)-7.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.36 | ||
| P/FCF | 15.71 | ||
| P/OCF | 10.91 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)3.25
EY7.22%
EPS(NY)4.09
Fwd EY9.08%
FCF(TTM)2.86
FCFY6.36%
OCF(TTM)4.13
OCFY9.17%
SpS33.22
BVpS24.49
TBVpS-2.72
PEG (NY)0.99
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 | 2.2 |
F-Score6
WACC5.69%
ROIC/WACC0.63
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 5Y12.89%
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 5Y3.74%
EBIT growth 1Y8.98%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y18.55%
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%