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 24 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
In the past year FME was profitable.
In the past year FME had a positive cash flow from operations.
In the past 5 years FME has always 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 of 1.60%. This is comparable to the rest of the industry: FME outperforms 50.00% of its industry peers.
FME has a Return On Equity (3.69%) which is comparable to the rest of the industry.
FME has a Return On Invested Capital (3.20%) 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 5.60%.
The last Return On Invested Capital (3.20%) for FME is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 3.69% | ||
| ROIC | 3.2% |
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 (2.78%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FME has declined.
FME's Operating Margin of 6.55% is in line compared to the rest of the industry. FME outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of FME has declined.
FME has a Gross Margin (24.60%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FME has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 2.78% | ||
| GM | 24.6% |
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.
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 2.09 indicates that FME is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FME (2.09) is better than 75.00% of its industry peers.
The Debt to FCF ratio of FME is 6.60, which is on the high side as it means it would take FME, 6.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.60, FME is in the better half of the industry, outperforming 66.67% 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.
FME's Debt to Equity ratio of 0.67 is fine compared to the rest of the industry. FME outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.55
WACC5.86%
2.3 Liquidity
FME has a Current Ratio of 1.40. This is a normal value and indicates that FME is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FME (1.40) is better than 79.17% of its industry peers.
FME has a Quick Ratio of 1.03. This is a normal value and indicates that FME is financially healthy and should not expect problems in meeting its short term obligations.
FME has a better Quick ratio (1.03) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.66% over the past year.
FME shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.43% yearly.
The Revenue has decreased by -0.61% in the past 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)26.66%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%3.41%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%1.94%
3.2 Future
Based on estimates for the next years, FME will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.10% on average per year.
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 Year2.62%
Revenue Next 2Y3.12%
Revenue Next 3Y3.22%
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
The Price/Earnings ratio is 14.07, which 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 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. FME is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.34, the valuation of FME can be described as correct.
Based on the Price/Forward Earnings ratio, FME is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. FME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FME is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
FME's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 11.81 |
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
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FME has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.73, FME pays a better dividend. On top of this FME pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, FME pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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 64.91% of its income as dividend. This is not a sustainable payout ratio.
FME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.91%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
FRA:FME (5/5/2025, 2:21:57 PM)
45.73
+0.39 (+0.86%)
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 Cap26.84B
Analysts66.15
Price Target47.62 (4.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.19
Dividend Growth(5Y)0.31%
DP64.91%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.42%
Min EPS beat(2)15.03%
Max EPS beat(2)25.81%
EPS beat(4)4
Avg EPS beat(4)20.21%
Min EPS beat(4)2.71%
Max EPS beat(4)37.27%
EPS beat(8)6
Avg EPS beat(8)12.6%
EPS beat(12)8
Avg EPS beat(12)9.6%
EPS beat(16)12
Avg EPS beat(16)7.86%
Revenue beat(2)1
Avg Revenue beat(2)0.82%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)6.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-4.95%
Max Revenue beat(4)6.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.48%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)-0.58%
PT rev (3m)10.75%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)10.96%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 12.34 | ||
| P/S | 1.39 | ||
| P/FCF | 16.13 | ||
| P/OCF | 11.25 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.81 |
EPS(TTM)3.25
EY7.11%
EPS(NY)3.71
Fwd EY8.1%
FCF(TTM)2.84
FCFY6.2%
OCF(TTM)4.07
OCFY8.89%
SpS32.95
BVpS24.84
TBVpS-3.35
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 3.69% | ||
| ROCE | 4.54% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 9.15% | ||
| OM | 6.55% | ||
| PM (TTM) | 2.78% | ||
| GM | 24.6% | ||
| FCFM | 8.6% |
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 41.46% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 3.32 | ||
| Cash Conversion | 79.32% | ||
| Profit Quality | 309.29% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.09 |
F-Score6
WACC5.86%
ROIC/WACC0.55
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)26.66%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%3.41%
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y9.1%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%1.94%
Revenue Next Year2.62%
Revenue Next 2Y3.12%
Revenue Next 3Y3.22%
Revenue Next 5Y3.73%
EBIT growth 1Y-8.56%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year103.45%
EBIT Next 3Y32.04%
EBIT Next 5Y17.68%
FCF growth 1Y-13.25%
FCF growth 3Y1.25%
FCF growth 5Y3.45%
OCF growth 1Y-9.23%
OCF growth 3Y-1.4%
OCF growth 5Y-1.45%