FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
USA - NYSE:FMS - US3580291066 - ADR
24 USD
-0.3 (-1.23%)
25.68 USD
+1.68 (+7%)
FMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of FMS get a neutral evaluation. Nothing too spectacular is happening here. 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.
FMS had a positive operating cash flow in the past year.
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's Return On Assets of 2.10% is in line compared to the rest of the industry. FMS outperforms 55.00% of its industry peers.
The Return On Equity of FMS (4.95%) is better than 62.00% of its industry peers.
FMS has a Return On Invested Capital of 3.84%. This is comparable to the rest of the industry: FMS outperforms 47.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMS is significantly below the industry average of 9.42%.
The 3 year average ROIC (3.14%) for FMS is below the current ROIC(3.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.95% | ||
| ROIC | 3.84% |
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 3.36%, FMS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
FMS's Profit Margin has declined in the last couple of years.
FMS has a better Operating Margin (7.15%) than 70.00% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
Looking at the Gross Margin, with a value of 24.67%, FMS is in line with its industry, outperforming 51.00% of the companies in the same industry.
FMS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.15% | ||
| PM (TTM) | 3.36% | ||
| GM | 24.67% |
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.
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 1.78. This is a bad value and indicates that FMS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, FMS is in line with its industry, outperforming 43.00% of the companies in the same industry.
The Debt to FCF ratio of FMS is 5.47, which is a neutral value as it means it would take FMS, 5.47 years of fcf income to pay off all of its debts.
FMS has a better Debt to FCF ratio (5.47) than 63.00% of its industry peers.
FMS has a Debt/Equity ratio of 0.71. This is a neutral value indicating FMS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, FMS is in line with its industry, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.75
WACC5.08%
2.3 Liquidity
FMS has a Current Ratio of 1.44. This is a normal value and indicates that FMS is financially healthy and should not expect problems in meeting its short term obligations.
FMS's Current ratio of 1.44 is in line compared to the rest of the industry. FMS outperforms 50.00% of its industry peers.
A Quick Ratio of 1.08 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a worse Quick ratio (1.08) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FMS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.08%.
The Earnings Per Share has been decreasing by -6.43% on average over the past years.
Looking at the last year, FMS shows a decrease in Revenue. The Revenue has decreased by -0.61% in the last year.
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)-0.08%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-32.02%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%4.49%
3.2 Future
The Earnings Per Share is expected to grow by 13.70% 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 3.96% on average per year.
EPS Next Y18.38%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
EPS Next 5Y13.7%
Revenue Next Year1.2%
Revenue Next 2Y2.1%
Revenue Next 3Y2.99%
Revenue Next 5Y3.96%
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
FMS is valuated correctly with a Price/Earnings ratio of 12.90.
Compared to the rest of the industry, the Price/Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 86.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. FMS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.05, which indicates a very decent valuation of FMS.
FMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 89.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, FMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
86.00% of the companies in the same industry are more expensive than FMS, based on the Enterprise Value to EBITDA ratio.
94.00% of the companies in the same industry are more expensive than FMS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 6.88 |
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)0.7
PEG (5Y)N/A
EPS Next 2Y12.9%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, FMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, FMS pays a better dividend. On top of this FMS pays more dividend than 98.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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.
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
64.37% of the earnings are spent on dividend by FMS. This is not a sustainable payout ratio.
The dividend of FMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.37%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
24
-0.3 (-1.23%)
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-0.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.08B
Revenue(TTM)19.34B
Net Income(TTM)656.42M
Analysts65.6
Price Target28.83 (20.12%)
Short Float %0.15%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.69
Dividend Growth(5Y)0.31%
DP64.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.03%
Min EPS beat(2)14.89%
Max EPS beat(2)27.17%
EPS beat(4)4
Avg EPS beat(4)20.72%
Min EPS beat(4)14.89%
Max EPS beat(4)27.17%
EPS beat(8)7
Avg EPS beat(8)15.78%
EPS beat(12)10
Avg EPS beat(12)13.92%
EPS beat(16)12
Avg EPS beat(16)10.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)6.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)5
Avg Revenue beat(12)-0.49%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)-4.04%
PT rev (3m)-3.5%
EPS NQ rev (1m)4.88%
EPS NQ rev (3m)6.13%
EPS NY rev (1m)0%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.63 | ||
| P/FCF | 6.06 | ||
| P/OCF | 4.43 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.88 |
EPS(TTM)1.86
EY7.75%
EPS(NY)2.39
Fwd EY9.95%
FCF(TTM)3.96
FCFY16.5%
OCF(TTM)5.41
OCFY22.55%
SpS38.36
BVpS26.08
TBVpS-3.15
PEG (NY)0.7
PEG (5Y)N/A
Graham Number33.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.95% | ||
| ROCE | 5.44% | ||
| ROIC | 3.84% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 11.45% | ||
| OM | 7.15% | ||
| PM (TTM) | 3.36% | ||
| GM | 24.67% | ||
| FCFM | 10.32% |
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-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 45.83% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 3.82 | ||
| Cash Conversion | 91.56% | ||
| Profit Quality | 307% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.78 |
F-Score6
WACC5.08%
ROIC/WACC0.75
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)-0.08%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-32.02%
EPS Next Y18.38%
EPS Next 2Y12.9%
EPS Next 3Y13.44%
EPS Next 5Y13.7%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%4.49%
Revenue Next Year1.2%
Revenue Next 2Y2.1%
Revenue Next 3Y2.99%
Revenue Next 5Y3.96%
EBIT growth 1Y2.71%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year96.66%
EBIT Next 3Y30.5%
EBIT Next 5Y19.09%
FCF growth 1Y14.07%
FCF growth 3Y1.25%
FCF growth 5Y3.45%
OCF growth 1Y14.41%
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.