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 103 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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
FMS has a Return On Assets (1.89%) which is in line with its industry peers.
FMS has a Return On Equity of 4.30%. This is comparable to the rest of the industry: FMS outperforms 59.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.60%, FMS is in line with its industry, outperforming 47.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMS is significantly below the industry average of 9.71%.
The 3 year average ROIC (3.14%) for FMS is below the current ROIC(3.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROIC | 3.6% |
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
Looking at the Profit Margin, with a value of 3.17%, FMS is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
In the last couple of years the Profit Margin of FMS has declined.
The Operating Margin of FMS (7.17%) is better than 71.84% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
FMS's Gross Margin of 24.45% is in line compared to the rest of the industry. FMS outperforms 49.51% of its industry peers.
In the last couple of years the Gross Margin of FMS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| 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
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.
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 1.76. 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 (1.76) is comparable to the rest of the 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.
With a Debt to FCF ratio value of 6.44, FMS perfoms like the industry average, outperforming 58.25% of the companies in the same 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 53.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.7
WACC5.16%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a Current ratio (1.46) which is in line with its industry peers.
A Quick Ratio of 1.08 indicates that FMS should not have too much problems paying its short term obligations.
FMS's Quick ratio of 1.08 is on the low side compared to the rest of the industry. FMS is outperformed by 64.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% 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 0.10% in the last year.
FMS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.04% yearly.
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
FMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y12.89%
Revenue Next Year2.18%
Revenue Next 2Y2.89%
Revenue Next 3Y3.18%
Revenue Next 5Y3.74%
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
With a Price/Earnings ratio of 14.29, FMS is valued correctly.
FMS's Price/Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 81.55% of the companies in the same industry.
FMS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
FMS is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
FMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 84.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, FMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMS is valued cheaper than 82.52% 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 88.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 7.43 |
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)1.02
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.52, FMS pays a better dividend. On top of this FMS pays more dividend than 96.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, FMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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.
The dividend of FMS decreased 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.
The dividend of FMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.48%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
27.15
+0.11 (+0.41%)
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 Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.93B
Analysts65.6
Price Target29.42 (8.36%)
Short Float %0.34%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend0.7
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)3.21%
PT rev (3m)12.13%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)-7.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.7 | ||
| P/FCF | 8.11 | ||
| P/OCF | 5.63 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.43 |
EPS(TTM)1.9
EY7%
EPS(NY)2.39
Fwd EY8.8%
FCF(TTM)3.35
FCFY12.34%
OCF(TTM)4.82
OCFY17.77%
SpS38.83
BVpS28.63
TBVpS-3.18
PEG (NY)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 4.3% | ||
| ROCE | 5.12% | ||
| ROIC | 3.6% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 9.93% | ||
| OM | 7.17% | ||
| 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 | 3.18 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.67 | ||
| Cash Conversion | 80.12% | ||
| Profit Quality | 271.95% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.76 |
F-Score6
WACC5.16%
ROIC/WACC0.7
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 5Y12.89%
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 5Y3.74%
EBIT growth 1Y8.98%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y18.55%
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%