FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
NYSE:FMS - New York Stock Exchange, Inc. - US3580291066 - ADR - Currency: USD
Overall FMS gets a fundamental rating of 5 out of 10. We evaluated FMS against 102 industry peers in the Health Care Providers & Services industry. FMS has an average financial health and profitability rating. FMS is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years FMS has always been profitable.
Each year in the past 5 years FMS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.60%, FMS perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
FMS has a Return On Equity (3.69%) which is in line with its industry peers.
FMS's Return On Invested Capital of 3.20% is in line compared to the rest of the industry. FMS outperforms 45.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMS is significantly below the industry average of 9.13%.
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 62.75% of its industry peers.
In the last couple of years the Profit Margin of FMS has declined.
The Operating Margin of FMS (6.55%) is better than 66.67% of its industry peers.
FMS's Operating Margin has declined in the last couple of years.
FMS 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 FMS 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
FMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, FMS has an improved debt to assets ratio.
2.2 Solvency
FMS has an Altman-Z score of 1.66. 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 1.66 is in line compared to the rest of the industry. FMS outperforms 41.18% of its industry peers.
FMS has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as FMS would need 6.60 years to pay back of all of its debts.
FMS has a better Debt to FCF ratio (6.60) than 61.76% of 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 (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.63
WACC5.04%
2.3 Liquidity
A Current Ratio of 1.40 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a Current ratio of 1.40. This is comparable to the rest of the industry: FMS outperforms 45.10% of its industry peers.
A Quick Ratio of 1.03 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a worse Quick ratio (1.03) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
FMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.66%, which is quite impressive.
FMS 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.
The Revenue has been growing slightly by 2.04% on average over the past years.
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
FMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.10% yearly.
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 Year2.62%
Revenue Next 2Y3.12%
Revenue Next 3Y3.22%
Revenue Next 5Y3.73%
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 13.83, the valuation of FMS can be described as correct.
FMS's Price/Earnings ratio is a bit cheaper when compared to the industry. FMS is cheaper than 79.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, FMS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.14, the valuation of FMS can be described as correct.
Based on the Price/Forward Earnings ratio, FMS is valued cheaper than 85.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, FMS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 12.14 |
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 | 7.94 | ||
| EV/EBITDA | 7.26 |
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 13.10% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 3.24%. 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 2.60. FMS pays more dividend than 95.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, FMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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
64.91% of the earnings are spent on dividend by FMS. 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%
25.59
+0.57 (+2.28%)
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 Change0.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.02B
Analysts66.15
Price Target27.15 (6.1%)
Short Float %0.17%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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)13.36%
PT rev (3m)27.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.29%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)8.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.87%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 12.14 | ||
| P/S | 0.68 | ||
| P/FCF | 7.94 | ||
| P/OCF | 5.53 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)1.85
EY7.23%
EPS(NY)2.11
Fwd EY8.23%
FCF(TTM)3.22
FCFY12.6%
OCF(TTM)4.62
OCFY18.07%
SpS37.47
BVpS28.25
TBVpS-3.81
PEG (NY)0.99
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 | 1.66 |
F-Score6
WACC5.04%
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)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%