FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
USA - NYSE:FMS - US3580291066 - ADR
24.97 USD
-0.29 (-1.15%)
24.97 USD
0 (0%)
Taking everything into account, FMS scores 5 out of 10 in our fundamental rating. FMS was compared to 101 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of FMS get a neutral evaluation. Nothing too spectacular is happening here. FMS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
FMS had positive earnings in the past year.
In the past year FMS had a positive cash flow from operations.
Each year in the past 5 years FMS has been profitable.
FMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FMS (2.10%) is comparable to the rest of the industry.
FMS has a better Return On Equity (4.95%) than 62.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.84%, FMS is in line with its industry, outperforming 48.51% of the companies in the same industry.
FMS had an Average Return On Invested Capital over the past 3 years of 3.14%. This is significantly below the industry average of 9.19%.
The 3 year average ROIC (3.14%) for FMS is below the current ROIC(3.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.95% | ||
| ROIC | 3.84% |
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 decent Profit Margin value of 3.36%, FMS is doing good in the industry, outperforming 68.32% of the companies in the same industry.
In the last couple of years the Profit Margin of FMS has declined.
FMS's Operating Margin of 7.15% is fine compared to the rest of the industry. FMS outperforms 71.29% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
FMS has a Gross Margin (24.67%) which is comparable to the rest of the industry.
FMS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.15% | ||
| PM (TTM) | 3.36% | ||
| GM | 24.67% |
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
FMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FMS has about the same amount of shares outstanding.
The number of shares outstanding for FMS has been reduced compared to 5 years ago.
The debt/assets ratio for FMS has been reduced compared to a year ago.
2.2 Solvency
FMS has an Altman-Z score of 1.79. This is a bad value and indicates that FMS is not financially healthy and even has some risk of bankruptcy.
FMS's Altman-Z score of 1.79 is in line compared to the rest of the industry. FMS outperforms 41.58% of its industry peers.
The Debt to FCF ratio of FMS is 5.47, which is a neutral value as it means it would take FMS, 5.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FMS (5.47) is better than 66.34% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that FMS is somewhat dependend on debt financing.
FMS has a Debt to Equity ratio of 0.71. This is comparable to the rest of the industry: FMS outperforms 49.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.75
WACC5.1%
2.3 Liquidity
A Current Ratio of 1.44 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a Current ratio (1.44) which is comparable to the rest of the industry.
A Quick Ratio of 1.08 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a worse Quick ratio (1.08) than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.17% over the past year.
The Earnings Per Share has been decreasing by -6.43% on average over the past years.
Looking at the last year, FMS shows a small growth in Revenue. The Revenue has grown by 0.53% in the last year.
The Revenue has been growing slightly by 2.04% on average over the past years.
EPS 1Y (TTM)17.17%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%30%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%0.55%
3.2 Future
Based on estimates for the next years, FMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.34% on average per year.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y17.89%
EPS Next 2Y13.69%
EPS Next 3Y14.86%
EPS Next 5Y13.34%
Revenue Next Year1.46%
Revenue Next 2Y2.28%
Revenue Next 3Y2.99%
Revenue Next 5Y3.78%
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.
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
Based on the Price/Earnings ratio of 12.24, the valuation of FMS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 86.14% of the companies listed in the same industry.
FMS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 10.15, the valuation of FMS can be described as very reasonable.
FMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 85.15% of the companies in the same industry.
FMS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMS is valued cheaper than 85.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 95.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
FMS's 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 FMS's earnings are expected to grow with 14.86% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y13.69%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, FMS pays a better dividend. On top of this FMS pays more dividend than 97.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, FMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of FMS has a limited annual growth rate of 0.31%.
FMS has paid a dividend for at least 10 years, which is a reliable track record.
FMS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.31%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FMS pays out 64.37% of its income as dividend. This is not a sustainable payout ratio.
FMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.37%
EPS Next 2Y13.69%
EPS Next 3Y14.86%
24.97
-0.29 (-1.15%)
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 Change5.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.65B
Analysts68
Price Target30.05 (20.34%)
Short Float %0.36%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend0.7
Dividend Growth(5Y)0.31%
DP64.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.03%
Min EPS beat(2)14.89%
Max EPS beat(2)27.17%
EPS beat(4)4
Avg EPS beat(4)20.72%
Min EPS beat(4)14.89%
Max EPS beat(4)27.17%
EPS beat(8)7
Avg EPS beat(8)15.78%
EPS beat(12)10
Avg EPS beat(12)13.92%
EPS beat(16)12
Avg EPS beat(16)10.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)6.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)0.91%
PT rev (3m)5.42%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)67.48%
EPS NY rev (1m)3.39%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.15 | ||
| P/S | 0.64 | ||
| P/FCF | 6.21 | ||
| P/OCF | 4.54 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)2.04
EY8.17%
EPS(NY)2.46
Fwd EY9.86%
FCF(TTM)4.02
FCFY16.12%
OCF(TTM)5.5
OCFY22.02%
SpS38.97
BVpS26.5
TBVpS-3.2
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.95% | ||
| ROCE | 5.44% | ||
| ROIC | 3.84% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 11.45% | ||
| OM | 7.15% | ||
| PM (TTM) | 3.36% | ||
| GM | 24.67% | ||
| FCFM | 10.32% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 45.83% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 91.56% | ||
| Profit Quality | 307% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.79 |
F-Score6
WACC5.1%
ROIC/WACC0.75
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)17.17%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%30%
EPS Next Y17.89%
EPS Next 2Y13.69%
EPS Next 3Y14.86%
EPS Next 5Y13.34%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%0.55%
Revenue Next Year1.46%
Revenue Next 2Y2.28%
Revenue Next 3Y2.99%
Revenue Next 5Y3.78%
EBIT growth 1Y2.71%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y19.02%
FCF growth 1Y14.07%
FCF growth 3Y1.25%
FCF growth 5Y3.45%
OCF growth 1Y14.41%
OCF growth 3Y-1.4%
OCF growth 5Y-1.45%