FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMS - US3580291066 - ADR
23.92 USD
+0.1 (+0.42%)
23.85 USD
-0.07 (-0.29%)
FMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. FMS has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on FMS.
1. Profitability
1.1 Basic Checks
In the past year FMS was profitable.
In the past year FMS had a positive cash flow from operations.
FMS had positive earnings in each of the past 5 years.
FMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.33%, FMS is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
FMS's Return On Equity of 5.55% is fine compared to the rest of the industry. FMS outperforms 62.38% of its industry peers.
FMS's Return On Invested Capital of 3.95% is in line compared to the rest of the industry. FMS outperforms 49.51% of its industry peers.
FMS had an Average Return On Invested Capital over the past 3 years of 3.14%. This is significantly below the industry average of 9.22%.
The 3 year average ROIC (3.14%) for FMS is below the current ROIC(3.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.55% | ||
| ROIC | 3.95% |
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 FMS (3.66%) is better than 72.28% of its industry peers.
FMS's Profit Margin has declined in the last couple of years.
FMS has a Operating Margin of 7.19%. This is in the better half of the industry: FMS outperforms 70.30% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
FMS has a Gross Margin of 25.00%. This is comparable to the rest of the industry: FMS outperforms 49.51% of its industry peers.
FMS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.19% | ||
| PM (TTM) | 3.66% | ||
| GM | 25% |
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 FMS is destroying value.
FMS has about the same amout of shares outstanding than it did 1 year ago.
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 1.81. This is a bad value and indicates that FMS is not financially healthy and even has some risk of bankruptcy.
FMS has a Altman-Z score (1.81) which is comparable to the rest of the industry.
The Debt to FCF ratio of FMS is 5.97, which is a neutral value as it means it would take FMS, 5.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.97, FMS is doing good in the industry, outperforming 61.39% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that FMS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, FMS is in line with its industry, outperforming 50.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.78
WACC5.04%
2.3 Liquidity
A Current Ratio of 1.36 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a Current ratio (1.36) which is in line with its industry peers.
FMS has a Quick Ratio of 1.36. This is a bad value and indicates that FMS is not financially healthy enough and could expect problems in meeting its short term obligations.
FMS has a Quick ratio of 1.00. This is in the lower half of the industry: FMS underperforms 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.77% over the past year.
FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.43% yearly.
FMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.10%.
The Revenue has been growing slightly by 2.04% on average over the past years.
EPS 1Y (TTM)16.77%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%34.15%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%2.63%
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 13.73% on average per year.
FMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y18.38%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
EPS Next 5Y13.73%
Revenue Next Year1.2%
Revenue Next 2Y2.1%
Revenue Next 3Y2.99%
Revenue Next 5Y4.08%
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
FMS is valuated reasonably with a Price/Earnings ratio of 11.07.
Compared to the rest of the industry, the Price/Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 90.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FMS to the average of the S&P500 Index (26.31), we can say FMS is valued rather cheaply.
FMS is valuated reasonably with a Price/Forward Earnings ratio of 10.03.
FMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 91.09% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. FMS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
87.13% of the companies in the same industry are more expensive than FMS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FMS is valued cheaper than 92.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.92 | ||
| EV/EBITDA | 6.69 |
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.
FMS's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y12.9%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, FMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.47, FMS pays a better dividend. On top of this FMS pays more dividend than 98.02% of the companies listed in the same industry.
FMS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
58.83% of the earnings are spent on dividend by FMS. This is a bit on the high side, but may be sustainable.
FMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.83%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
23.92
+0.1 (+0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners43.16%
Inst Owner Change-1.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.04B
Revenue(TTM)19.64B
Net Income(TTM)718.19M
Analysts65.6
Price Target28.01 (17.1%)
Short Float %0.4%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend0.69
Dividend Growth(5Y)0.31%
DP58.83%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.52%
Min EPS beat(2)14.16%
Max EPS beat(2)14.89%
EPS beat(4)4
Avg EPS beat(4)17.81%
Min EPS beat(4)14.16%
Max EPS beat(4)27.17%
EPS beat(8)7
Avg EPS beat(8)16.37%
EPS beat(12)10
Avg EPS beat(12)13.79%
EPS beat(16)12
Avg EPS beat(16)10.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)-1.71%
Revenue beat(4)2
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)6.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)4
Avg Revenue beat(12)-0.64%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)-5.03%
PT rev (3m)-5.46%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.62 | ||
| P/FCF | 6.92 | ||
| P/OCF | 4.83 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.16
EY9.03%
EPS(NY)2.38
Fwd EY9.97%
FCF(TTM)3.46
FCFY14.46%
OCF(TTM)4.95
OCFY20.69%
SpS38.71
BVpS25.52
TBVpS-3.72
PEG (NY)0.6
PEG (5Y)N/A
Graham Number35.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.55% | ||
| ROCE | 5.62% | ||
| ROIC | 3.95% | ||
| ROICexc | 4.26% | ||
| ROICexgc | 11.65% | ||
| OM | 7.19% | ||
| PM (TTM) | 3.66% | ||
| GM | 25% | ||
| FCFM | 8.93% |
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%
ROICexgc growth 3Y-7.67%
ROICexgc 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-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.97 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 47.15% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 3.87 | ||
| Cash Conversion | 83.24% | ||
| Profit Quality | 244.33% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.81 |
F-Score5
WACC5.04%
ROIC/WACC0.78
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)16.77%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%34.15%
EPS Next Y18.38%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
EPS Next 5Y13.73%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%2.63%
Revenue Next Year1.2%
Revenue Next 2Y2.1%
Revenue Next 3Y2.99%
Revenue Next 5Y4.08%
EBIT growth 1Y-3.43%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year96.66%
EBIT Next 3Y30.5%
EBIT Next 5Y18.68%
FCF growth 1Y-5.89%
FCF growth 3Y1.25%
FCF growth 5Y3.45%
OCF growth 1Y0.06%
OCF growth 3Y-1.4%
OCF growth 5Y-1.45%
FRESENIUS MEDICAL CARE-ADR / FMS FAQ
What is the fundamental rating for FMS stock?
ChartMill assigns a fundamental rating of 5 / 10 to FMS.
What is the valuation status of FRESENIUS MEDICAL CARE-ADR (FMS) stock?
ChartMill assigns a valuation rating of 8 / 10 to FRESENIUS MEDICAL CARE-ADR (FMS). This can be considered as Undervalued.
How profitable is FRESENIUS MEDICAL CARE-ADR (FMS) stock?
FRESENIUS MEDICAL CARE-ADR (FMS) has a profitability rating of 5 / 10.
How financially healthy is FRESENIUS MEDICAL CARE-ADR?
The financial health rating of FRESENIUS MEDICAL CARE-ADR (FMS) is 4 / 10.
What is the expected EPS growth for FRESENIUS MEDICAL CARE-ADR (FMS) stock?
The Earnings per Share (EPS) of FRESENIUS MEDICAL CARE-ADR (FMS) is expected to grow by 18.38% in the next year.