FRESENIUS MEDICAL CARE AG (FME.DE) Stock Fundamental Analysis
FRA:FME - Deutsche Boerse Ag - DE0005785802 - Common Stock - Currency: EUR
FME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Health Care Providers & Services industry. FME has only an average score on both its financial health and profitability. FME has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FME had positive earnings in the past year.
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 comparable to the rest of the industry.
FME has a Return On Equity (4.30%) which is in line with its industry peers.
FME has a Return On Invested Capital of 3.60%. This is comparable to the rest of the industry: FME outperforms 42.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FME is below the industry average of 6.32%.
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 comparable to the rest of the 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.
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 50.00% 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
FME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FME has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FME has less shares outstanding
FME has a better debt/assets ratio than last year.
2.2 Solvency
FME has an Altman-Z score of 2.18. 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 2.18, FME is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 73.08% of the companies in the same industry.
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 | 2.18 |
ROIC/WACC0.63
WACC5.69%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, FME is in the better half of the industry, outperforming 73.08% 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.
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.
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 12.89% on average over the next years. This is quite good.
Based on estimates for the next years, FME will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 13.90, which indicates a correct valuation of FME.
65.38% of the companies in the same industry are more expensive than FME, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.93, FME is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of FME can be described as reasonable.
Based on the Price/Forward Earnings ratio, FME is valued a bit cheaper than 73.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.78. FME is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FME is valued a bit more expensive than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FME is valued a bit more expensive than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.77 | ||
| EV/EBITDA | 11.61 |
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.
A more expensive valuation may be justified as FME's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, FME has a reasonable but not impressive dividend return.
FME's Dividend Yield is rather good when compared to the industry average which is at 2.80. FME pays more dividend than 80.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, FME pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
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 (7/29/2025, 5:29:56 PM)
45.17
+0.42 (+0.94%)
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 Cap26.51B
Analysts65.6
Price Target51.5 (14.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)1.16%
PT rev (3m)8.16%
EPS NQ rev (1m)7.17%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 11.05 | ||
| P/S | 1.36 | ||
| P/FCF | 15.77 | ||
| P/OCF | 10.95 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.61 |
EPS(TTM)3.25
EY7.2%
EPS(NY)4.09
Fwd EY9.05%
FCF(TTM)2.86
FCFY6.34%
OCF(TTM)4.13
OCFY9.14%
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 | 2.18 |
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%