FRESENIUS MEDICAL CARE AG (FME.DE) Stock Fundamental Analysis
FRA:FME - Deutsche Boerse Ag - DE0005785802 - Common Stock - Currency: EUR
Overall FME gets a fundamental rating of 5 out of 10. We evaluated FME against 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 not valued too expensively and it also shows 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.
FME had positive earnings in each of the past 5 years.
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 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 44.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FME 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
Looking at the Profit Margin, with a value of 3.17%, FME is in the better half of the industry, outperforming 64.00% 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 7.17%. This is comparable to the rest of the industry: FME outperforms 56.00% of its industry peers.
FME's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.45%, FME is in line with its industry, 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FME 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 2.19. 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.
FME's Altman-Z score of 2.19 is fine compared to the rest of the industry. FME outperforms 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.
Looking at the Debt to FCF ratio, with a value of 6.44, FME is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
FME has a Debt/Equity ratio of 0.67. This is a neutral value indicating 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 | 2.19 |
ROIC/WACC0.63
WACC5.71%
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 better Current ratio (1.46) than 72.00% of its industry peers.
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 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.
The Earnings Per Share has been decreasing by -6.43% on average over the past years.
The Revenue has been growing slightly by 0.10% in the past year.
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
FME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.03 indicates a correct valuation of FME.
FME's Price/Earnings ratio is a bit cheaper when compared to the industry. FME is cheaper than 68.00% of the companies in the same industry.
FME is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.15, the valuation of FME can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FME is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.71. FME is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FME is valued a bit more expensive than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FME is valued a bit more expensive than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.91 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
The 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
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.
FME's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| 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
FME pays out 56.48% of its income as dividend. 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 (7/22/2025, 7:00:00 PM)
45.59
+0.36 (+0.8%)
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 Cap26.75B
Analysts65.6
Price Target51.5 (12.96%)
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 | 14.03 | ||
| Fwd PE | 11.15 | ||
| P/S | 1.37 | ||
| P/FCF | 15.91 | ||
| P/OCF | 11.05 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.7 |
EPS(TTM)3.25
EY7.13%
EPS(NY)4.09
Fwd EY8.96%
FCF(TTM)2.86
FCFY6.28%
OCF(TTM)4.13
OCFY9.05%
SpS33.22
BVpS24.49
TBVpS-2.72
PEG (NY)1
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 | 2.19 |
F-Score6
WACC5.71%
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%