FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
NYSE:FMS - New York Stock Exchange, Inc. - US3580291066 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to FMS. FMS was compared to 102 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of FMS while its profitability can be described as average. FMS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FMS was profitable.
FMS had a positive operating cash flow in the past year.
FMS had positive earnings in each of the past 5 years.
In the past 5 years FMS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FMS (1.60%) is comparable to the rest of the industry.
The Return On Equity of FMS (3.69%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.20%, FMS is in line with its industry, outperforming 47.06% 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 9.50%.
The last Return On Invested Capital (3.20%) for FMS 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 FMS (2.78%) is better than 63.73% of its industry peers.
FMS's Profit Margin has declined in the last couple of years.
The Operating Margin of FMS (6.55%) is better than 69.61% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
FMS's Gross Margin of 24.60% is in line compared to the rest of the industry. FMS outperforms 50.00% of its industry peers.
FMS's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FMS is destroying value.
The number of shares outstanding for FMS remains at a similar level compared to 1 year ago.
FMS has less shares outstanding than it did 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 1.73. This is a bad value and indicates that FMS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FMS (1.73) is comparable to the rest of the industry.
The Debt to FCF ratio of FMS is 6.60, which is on the high side as it means it would take FMS, 6.60 years of fcf income to pay off all of its debts.
FMS has a Debt to FCF ratio (6.60) which is in line with its industry peers.
A Debt/Equity ratio of 0.67 indicates that FMS is somewhat dependend on debt financing.
FMS has a Debt to Equity ratio of 0.67. This is comparable to the rest of the industry: FMS outperforms 53.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.63
WACC5.07%
2.3 Liquidity
A Current Ratio of 1.40 indicates that FMS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, FMS is in line with its industry, outperforming 46.08% of the companies in the same industry.
FMS has a Quick Ratio of 1.03. 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 1.03. This is in the lower half of the industry: FMS underperforms 69.61% 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 for FMS have decreased by -1.64% in the last year.
The Earnings Per Share has been decreasing by -6.43% on average over the past years.
FMS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
Measured over the past years, FMS shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
EPS 1Y (TTM)-1.64%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-52.56%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%-3.9%
3.2 Future
The Earnings Per Share is expected to grow by 9.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y9.1%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
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
Based on the Price/Earnings ratio of 18.25, the valuation of FMS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FMS indicates a somewhat cheap valuation: FMS is cheaper than 71.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FMS to the average of the S&P500 Index (25.82), we can say FMS is valued slightly cheaper.
FMS is valuated correctly with a Price/Forward Earnings ratio of 12.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 80.39% of the companies listed in the same industry.
FMS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMS is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FMS is valued cheaply inside the industry as 87.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
FMS's 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)1.3
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 2.69%.
Compared to an average industry Dividend Yield of 2.47, FMS pays a better dividend. On top of this FMS pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FMS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of FMS has a limited annual growth rate of 0.31%.
FMS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FMS decreased recently.
Dividend Growth(5Y)0.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FMS pays out 64.91% 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.
DP64.91%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
29.02
-0.3 (-1.02%)
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 Change6.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.03B
Analysts66.15
Price Target26.44 (-8.89%)
Short Float %0.17%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.67
Dividend Growth(5Y)0.31%
DP64.91%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.79%
PT rev (3m)16.84%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)10.96%
EPS NY rev (1m)0%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-2.21%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.78 | ||
| P/FCF | 9.05 | ||
| P/OCF | 6.31 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)1.59
EY5.48%
EPS(NY)2.31
Fwd EY7.96%
FCF(TTM)3.21
FCFY11.05%
OCF(TTM)4.6
OCFY15.85%
SpS37.26
BVpS28.09
TBVpS-3.79
PEG (NY)1.3
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 | 1.73 |
F-Score6
WACC5.07%
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)-1.64%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-52.56%
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y9.1%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%-3.9%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
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%