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 103 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year FMS was profitable.
FMS had a positive operating cash flow in the past year.
Each year in the past 5 years FMS has been profitable.
In the past 5 years FMS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.89%, FMS is in line with its industry, outperforming 55.34% of the companies in the same industry.
FMS has a Return On Equity (4.30%) which is in line with its industry peers.
FMS has a Return On Invested Capital (3.60%) which is comparable to the rest of the 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 9.51%.
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
FMS has a Profit Margin of 3.17%. This is in the better half of the industry: FMS outperforms 66.02% of its industry peers.
FMS's Profit Margin has declined in the last couple of years.
FMS's Operating Margin of 7.17% is fine compared to the rest of the industry. FMS outperforms 71.84% of its industry peers.
FMS's Operating Margin has declined in the last couple of years.
FMS's Gross Margin of 24.45% is in line compared to the rest of the industry. FMS outperforms 50.49% 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.
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
Based on the Altman-Z score of 1.71, we must say that FMS is in the distress zone and has some risk of bankruptcy.
FMS has a Altman-Z score (1.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of FMS is 6.44, which is on the high side as it means it would take FMS, 6.44 years of fcf income to pay off all of its debts.
FMS's Debt to FCF ratio of 6.44 is in line compared to the rest of the industry. FMS outperforms 59.22% of its industry peers.
FMS has a Debt/Equity ratio of 0.67. This is a neutral value indicating FMS is somewhat dependend on debt financing.
FMS has a Debt to Equity ratio (0.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.73
WACC4.96%
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 comparable to the rest of the industry.
A Quick Ratio of 1.08 indicates that FMS should not have too much problems paying its short term obligations.
The Quick ratio of FMS (1.08) is worse than 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.03%.
FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.43% yearly.
FMS shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
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)1.03%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-35.63%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%-1.15%
3.2 Future
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
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 Year1.83%
Revenue Next 2Y2.62%
Revenue Next 3Y3.09%
Revenue Next 5Y3.74%
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.
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 13.61, the valuation of FMS can be described as correct.
Based on the Price/Earnings ratio, FMS is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
FMS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of FMS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 83.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FMS to the average of the S&P500 Index (36.36), we can say FMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
82.52% of the companies in the same industry are more expensive than FMS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 90.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.13 | ||
| EV/EBITDA | 6.85 |
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)0.97
PEG (5Y)N/A
EPS Next 2Y12.14%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 3.38%. 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 2.97. FMS pays more dividend than 93.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FMS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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
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%
NYSE:FMS (8/7/2025, 1:14:21 PM)
23.69
+0.17 (+0.72%)
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 Change-1.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.90B
Analysts65.6
Price Target29.78 (25.71%)
Short Float %0.35%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend0.69
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)1.57%
PT rev (3m)10.06%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.61 | ||
| P/FCF | 7.13 | ||
| P/OCF | 4.95 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.85 |
EPS(TTM)1.74
EY7.34%
EPS(NY)2.37
Fwd EY10.01%
FCF(TTM)3.32
FCFY14.03%
OCF(TTM)4.79
OCFY20.21%
SpS38.55
BVpS28.42
TBVpS-3.16
PEG (NY)0.97
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 | 1.71 |
F-Score6
WACC4.96%
ROIC/WACC0.73
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)1.03%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%-35.63%
EPS Next Y14.02%
EPS Next 2Y12.14%
EPS Next 3Y13.1%
EPS Next 5Y12.89%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%-1.15%
Revenue Next Year1.83%
Revenue Next 2Y2.62%
Revenue Next 3Y3.09%
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%