FRESENIUS MEDICAL CARE AG (FME.DE) Stock Fundamental Analysis
FRA:FME - Deutsche Boerse Ag - DE0005785802 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to FME. FME was compared to 24 industry peers in the Health Care Providers & Services industry. FME has an average financial health and profitability rating. FME is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FME was profitable.
FME had a positive operating cash flow in the past year.
Each year in the past 5 years FME has been profitable.
In the past 5 years FME always reported a positive cash flow from operatings.
1.2 Ratios
FME's Return On Assets of 2.03% is in line compared to the rest of the industry. FME outperforms 56.52% of its industry peers.
With a Return On Equity value of 4.84%, FME perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
FME's Return On Invested Capital of 3.95% is in line compared to the rest of the industry. FME outperforms 52.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FME is below the industry average of 5.66%.
The last Return On Invested Capital (3.95%) for FME is above the 3 year average (3.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.84% | ||
| ROIC | 3.95% |
ROA(3y)2.06%
ROA(5y)2.7%
ROE(3y)5.37%
ROE(5y)7.3%
ROIC(3y)3.63%
ROIC(5y)4.66%
1.3 Margins
FME has a Profit Margin of 3.43%. This is in the better half of the industry: FME outperforms 65.22% of its industry peers.
FME's Profit Margin has declined in the last couple of years.
The Operating Margin of FME (7.60%) is better than 69.57% of its industry peers.
FME's Operating Margin has declined in the last couple of years.
FME has a Gross Margin of 25.14%. This is comparable to the rest of the industry: FME outperforms 52.17% of its industry peers.
FME's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 3.43% | ||
| GM | 25.14% |
OM growth 3Y-19.4%
OM growth 5Y-14%
PM growth 3Y-26.73%
PM growth 5Y-26.52%
GM growth 3Y-6.53%
GM growth 5Y-4.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FME is destroying value.
The number of shares outstanding for FME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FME has less shares outstanding
FME has a better debt/assets ratio than last year.
2.2 Solvency
FME has an Altman-Z score of 2.12. This is not the best score and indicates that FME is in the grey zone with still only limited risk for bankruptcy at the moment.
FME's Altman-Z score of 2.12 is fine compared to the rest of the industry. FME outperforms 65.22% of its industry peers.
The Debt to FCF ratio of FME is 7.31, which is on the high side as it means it would take FME, 7.31 years of fcf income to pay off all of its debts.
FME has a Debt to FCF ratio of 7.31. This is comparable to the rest of the industry: FME outperforms 52.17% of its industry peers.
FME has a Debt/Equity ratio of 0.71. This is a neutral value indicating FME is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.71, FME is doing good in the industry, outperforming 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.71
WACC5.53%
2.3 Liquidity
FME has a Current Ratio of 1.37. This is a normal value and indicates that FME is financially healthy and should not expect problems in meeting its short term obligations.
FME's Current ratio of 1.37 is amongst the best of the industry. FME outperforms 82.61% of its industry peers.
A Quick Ratio of 1.02 indicates that FME should not have too much problems paying its short term obligations.
The Quick ratio of FME (1.02) is better than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.03% over the past year.
Measured over the past years, FME shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.60% on average per year.
Looking at the last year, FME shows a small growth in Revenue. The Revenue has grown by 0.29% in the last year.
FME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.29% yearly.
EPS 1Y (TTM)9.03%
EPS 3Y-17.86%
EPS 5Y-9.6%
EPS Q2Q%-48%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.89%
Revenue growth 5Y3.29%
Sales Q2Q%3.67%
3.2 Future
The Earnings Per Share is expected to grow by 14.56% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y12.81%
EPS Next 2Y17.13%
EPS Next 3Y15.23%
EPS Next 5Y14.56%
Revenue Next Year-0.64%
Revenue Next 2Y1.85%
Revenue Next 3Y2.5%
Revenue Next 5Y3.09%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.10, FME is valued correctly.
FME's Price/Earnings ratio is a bit cheaper when compared to the industry. FME is cheaper than 69.57% of the companies in the same industry.
FME's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.43.
A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of FME.
FME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FME is cheaper than 65.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FME to the average of the S&P500 Index (22.65), we can say FME is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FME is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, FME is valued a bit more expensive than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
The 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 FME's earnings are expected to grow with 15.23% in the coming years.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y17.13%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
FME has a Yearly Dividend Yield of 2.71%.
Compared to an average industry Dividend Yield of 2.95, FME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, FME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of FME has a limited annual growth rate of 1.12%.
Dividend Growth(5Y)1.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
FME pays out 52.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
FME's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.99%
EPS Next 2Y17.13%
EPS Next 3Y15.23%
FRA:FME (2/26/2025, 5:29:57 PM)
45.07
+0.85 (+1.92%)
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 ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.45B
Analysts55
Price Target44.69 (-0.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend1.12
Dividend Growth(5Y)1.12%
DP52.99%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.26%
Min EPS beat(2)2.71%
Max EPS beat(2)25.81%
EPS beat(4)3
Avg EPS beat(4)14.92%
Min EPS beat(4)-6.11%
Max EPS beat(4)37.27%
EPS beat(8)6
Avg EPS beat(8)11.77%
EPS beat(12)8
Avg EPS beat(12)8.52%
EPS beat(16)12
Avg EPS beat(16)7.23%
Revenue beat(2)0
Avg Revenue beat(2)-4.67%
Min Revenue beat(2)-4.95%
Max Revenue beat(2)-4.4%
Revenue beat(4)1
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-4.95%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.43%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-1.14%
PT rev (1m)9.29%
PT rev (3m)13.05%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)6.55%
EPS NY rev (1m)3.69%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.37 | ||
| P/FCF | 17.26 | ||
| P/OCF | 11.63 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)2.8
EY6.21%
EPS(NY)3.52
Fwd EY7.81%
FCF(TTM)2.61
FCFY5.79%
OCF(TTM)3.87
OCFY8.6%
SpS32.78
BVpS23.21
TBVpS-3.26
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 4.84% | ||
| ROCE | 5.5% | ||
| ROIC | 3.95% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 11.13% | ||
| OM | 7.6% | ||
| PM (TTM) | 3.43% | ||
| GM | 25.14% | ||
| FCFM | 7.96% |
ROA(3y)2.06%
ROA(5y)2.7%
ROE(3y)5.37%
ROE(5y)7.3%
ROIC(3y)3.63%
ROIC(5y)4.66%
ROICexc(3y)3.84%
ROICexc(5y)4.9%
ROICexgc(3y)9.56%
ROICexgc(5y)12.1%
ROCE(3y)5.18%
ROCE(5y)6.63%
ROICexcg growth 3Y-18.74%
ROICexcg growth 5Y-20.26%
ROICexc growth 3Y-19.52%
ROICexc growth 5Y-16.91%
OM growth 3Y-19.4%
OM growth 5Y-14%
PM growth 3Y-26.73%
PM growth 5Y-26.52%
GM growth 3Y-6.53%
GM growth 5Y-4.06%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.31 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 43.85% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 72.08% | ||
| Profit Quality | 232.49% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.12 |
F-Score7
WACC5.53%
ROIC/WACC0.71
Cap/Depr(3y)45.7%
Cap/Depr(5y)54.17%
Cap/Sales(3y)4.22%
Cap/Sales(5y)5.08%
Profit Quality(3y)252.38%
Profit Quality(5y)228.91%
High Growth Momentum
Growth
EPS 1Y (TTM)9.03%
EPS 3Y-17.86%
EPS 5Y-9.6%
EPS Q2Q%-48%
EPS Next Y12.81%
EPS Next 2Y17.13%
EPS Next 3Y15.23%
EPS Next 5Y14.56%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.89%
Revenue growth 5Y3.29%
Sales Q2Q%3.67%
Revenue Next Year-0.64%
Revenue Next 2Y1.85%
Revenue Next 3Y2.5%
Revenue Next 5Y3.09%
EBIT growth 1Y12.54%
EBIT growth 3Y-17.06%
EBIT growth 5Y-11.17%
EBIT Next Year102.54%
EBIT Next 3Y33.79%
EBIT Next 5Y20.43%
FCF growth 1Y-10.24%
FCF growth 3Y-15.23%
FCF growth 5Y15.84%
OCF growth 1Y1.64%
OCF growth 3Y-14.68%
OCF growth 5Y4.98%