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 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.
FMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FMS has a Return On Assets (1.89%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 4.30%, FMS is in line with its industry, outperforming 59.22% of the companies in the same industry.
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.
FMS had an Average Return On Invested Capital over the past 3 years of 3.14%. This is significantly below the industry average of 9.71%.
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
With a decent Profit Margin value of 3.17%, FMS is doing good in the industry, outperforming 65.05% of the companies in the same industry.
FMS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.17%, FMS is doing good in the industry, outperforming 71.84% of the companies in the same industry.
FMS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 24.45%, FMS perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
FMS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FMS is destroying value.
FMS has about the same amout of shares outstanding than it did 1 year ago.
FMS has less shares outstanding than it did 5 years ago.
FMS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that FMS is in the distress zone and has some risk of bankruptcy.
FMS's Altman-Z score of 1.77 is in line compared to the rest of the industry. FMS outperforms 40.78% of its industry peers.
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 has a Debt to FCF ratio (6.44) which is in line with 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.
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 | 1.77 |
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's Current ratio of 1.46 is in line compared to the rest of the industry. FMS outperforms 49.51% of its industry peers.
A Quick Ratio of 1.08 indicates that FMS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, FMS is doing worse than 64.08% of the companies in the same industry.
| 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.
Measured over the past years, FMS shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.43% on average per year.
FMS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
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
The Earnings Per Share is expected to grow by 12.89% 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 3.74% on average per year.
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
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
With a Price/Earnings ratio of 14.23, 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 27.30, which is the current average of the S&P500 Index.
FMS is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
Based on the Price/Forward Earnings ratio, FMS is valued cheaply inside the industry as 83.50% of the companies are valued more expensively.
FMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 82.52% of the companies listed in the same industry.
FMS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FMS is cheaper than 88.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
FMS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FMS's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
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 3.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, FMS pays a better dividend. On top of this FMS pays more dividend than 96.12% of the companies listed in the same industry.
FMS's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 in the last 3 years.
Dividend Growth(5Y)0.31%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FMS pays out 56.48% of its income as dividend. 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%
27.04
-0.41 (-1.49%)
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 Cap15.87B
Analysts65.6
Price Target29.42 (8.8%)
Short Float %0.56%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)11.24%
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 | 14.23 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.7 | ||
| P/FCF | 8.06 | ||
| P/OCF | 5.6 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.47 |
EPS(TTM)1.9
EY7.03%
EPS(NY)2.39
Fwd EY8.85%
FCF(TTM)3.35
FCFY12.41%
OCF(TTM)4.83
OCFY17.87%
SpS38.89
BVpS28.68
TBVpS-3.19
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 | 1.77 |
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%