FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
NYSE:FMS - New York Stock Exchange, Inc. - US3580291066 - ADR - Currency: USD
FMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. FMS has a medium profitability rating, but doesn't score so well on its financial health evaluation. FMS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FMS had positive earnings in the past year.
FMS had a positive operating cash flow in the past year.
In the past 5 years FMS has always been profitable.
FMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FMS's Return On Assets of 1.89% is in line compared to the rest of the industry. FMS outperforms 53.92% of its industry peers.
With a Return On Equity value of 4.30%, FMS perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
FMS has a Return On Invested Capital (3.43%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMS is significantly below the industry average of 9.62%.
The 3 year average ROIC (3.14%) for FMS is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROIC | 3.43% |
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 (3.17%) is better than 64.71% of its industry peers.
In the last couple of years the Profit Margin of FMS has declined.
FMS has a better Operating Margin (6.83%) than 71.57% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
FMS has a Gross Margin (24.45%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FMS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| 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 FMS 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.
Compared to 1 year ago, FMS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that FMS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.79, FMS perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
FMS has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as FMS would need 6.44 years to pay back of all of its debts.
The Debt to FCF ratio of FMS (6.44) is comparable to the rest of the industry.
FMS has a Debt/Equity ratio of 0.67. This is a neutral value indicating FMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, FMS perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.66
WACC5.19%
2.3 Liquidity
FMS has a Current Ratio of 1.46. This is a normal value and indicates that FMS is financially healthy and should not expect problems in meeting its short term obligations.
FMS has a Current ratio (1.46) which is in line with its industry peers.
FMS has a Quick Ratio of 1.08. This is a normal value and indicates that FMS is financially healthy and should not expect problems in meeting its short term obligations.
FMS has a Quick ratio of 1.08. This is in the lower half of the industry: FMS underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.40%, which is quite good.
Measured over the past years, FMS shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.43% on average per year.
FMS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
The Revenue has been growing slightly by 2.04% on average over the past years.
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 10.51% on average over the next years. This is quite good.
Based on estimates for the next years, FMS will show a small growth in Revenue. The Revenue will grow by 3.72% on average per year.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y10.51%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.72%
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
A Price/Earnings ratio of 15.22 indicates a correct valuation of FMS.
77.45% of the companies in the same industry are more expensive than FMS, based on the Price/Earnings ratio.
FMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
FMS is valuated correctly with a Price/Forward Earnings ratio of 12.08.
80.39% of the companies in the same industry are more expensive than FMS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FMS to the average of the S&P500 Index (22.13), we can say FMS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
FMS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FMS is cheaper than 81.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FMS is valued cheaper than 89.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.61 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FMS's earnings are expected to grow with 13.10% in the coming years.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
FMS's Dividend Yield is rather good when compared to the industry average which is at 2.46. FMS pays more dividend than 94.12% of the companies in the same industry.
FMS's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
56.48% 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.
DP56.48%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
28.61
-0.33 (-1.14%)
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 Change6.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.79B
Analysts65.6
Price Target28.5 (-0.38%)
Short Float %0.62%
Short Ratio5.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend0.68
Dividend Growth(5Y)0.31%
DP56.48%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)7.78%
PT rev (3m)19.01%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)9.53%
EPS NY rev (1m)0%
EPS NY rev (3m)5.25%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.74 | ||
| P/FCF | 8.61 | ||
| P/OCF | 5.98 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)1.88
EY6.57%
EPS(NY)2.37
Fwd EY8.28%
FCF(TTM)3.32
FCFY11.61%
OCF(TTM)4.78
OCFY16.72%
SpS38.51
BVpS28.4
TBVpS-3.16
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROCE | 4.88% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 9.45% | ||
| OM | 6.83% | ||
| 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 | 3.25 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 81.95% | ||
| Profit Quality | 271.95% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.79 |
F-Score6
WACC5.19%
ROIC/WACC0.66
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 5Y10.51%
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 5Y3.72%
EBIT growth 1Y3.71%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y18.82%
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%