FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
USA - NYSE:FMS - US3580291066 - ADR
25.46 USD
-0.11 (-0.43%)
25.47 USD
+0.01 (+0.04%)
Taking everything into account, FMS scores 5 out of 10 in our fundamental rating. FMS was compared to 101 industry peers in the Health Care Providers & Services industry. FMS has only an average score on both its financial health and profitability. FMS may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
FMS had positive earnings in the past year.
In the past year FMS had a positive cash flow from operations.
Each year in the past 5 years FMS has 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 of 2.10%. This is comparable to the rest of the industry: FMS outperforms 57.43% of its industry peers.
With a decent Return On Equity value of 4.95%, FMS is doing good in the industry, outperforming 62.38% of the companies in the same industry.
FMS's Return On Invested Capital of 3.84% is in line compared to the rest of the industry. FMS outperforms 48.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMS is significantly below the industry average of 9.19%.
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
FMS has a Profit Margin of 3.36%. This is in the better half of the industry: FMS outperforms 68.32% of its industry peers.
FMS's Profit Margin has declined in the last couple of years.
FMS has a Operating Margin of 7.15%. This is in the better half of the industry: FMS outperforms 71.29% of its industry peers.
FMS's Operating Margin has declined in the last couple of years.
FMS has a Gross Margin (24.67%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FMS has declined.
| 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
FMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FMS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FMS has less shares outstanding
The debt/assets ratio for FMS has been reduced compared to a year ago.
2.2 Solvency
FMS has an Altman-Z score of 1.79. This is a bad value and indicates that FMS is not financially healthy and even has some risk of bankruptcy.
FMS has a Altman-Z score of 1.79. This is comparable to the rest of the industry: FMS outperforms 42.57% of its industry peers.
FMS has a debt to FCF ratio of 5.47. This is a neutral value as FMS would need 5.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.47, FMS is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
FMS has a Debt/Equity ratio of 0.71. This is a neutral value indicating FMS is somewhat dependend on debt financing.
FMS has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.75
WACC5.12%
2.3 Liquidity
A Current Ratio of 1.44 indicates that FMS should not have too much problems paying its short term obligations.
FMS has a Current ratio (1.44) which is in line with its industry peers.
FMS has a Quick Ratio of 1.08. 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 Quick ratio of 1.08. This is in the lower half of the industry: FMS underperforms 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.17%, which is quite good.
FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.43% yearly.
The Revenue has been growing slightly by 0.53% in the past 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)17.17%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%30%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%0.55%
3.2 Future
The Earnings Per Share is expected to grow by 13.34% 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 3.78% on average per year.
EPS Next Y17.89%
EPS Next 2Y13.69%
EPS Next 3Y14.86%
EPS Next 5Y13.34%
Revenue Next Year1.46%
Revenue Next 2Y2.28%
Revenue Next 3Y2.99%
Revenue Next 5Y3.78%
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
A Price/Earnings ratio of 12.36 indicates a correct valuation of FMS.
Based on the Price/Earnings ratio, FMS is valued cheaper than 86.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of FMS to the average of the S&P500 Index (27.41), we can say FMS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of FMS.
Based on the Price/Forward Earnings ratio, FMS is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
FMS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMS is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FMS is valued cheaply inside the industry as 95.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 6.97 |
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 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y13.69%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 3.37%.
FMS's Dividend Yield is rather good when compared to the industry average which is at 2.43. FMS pays more dividend than 97.03% of the companies in the same industry.
FMS's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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
FMS pays out 64.37% of its income as dividend. 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 2Y13.69%
EPS Next 3Y14.86%
25.46
-0.11 (-0.43%)
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 Change5.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.94B
Analysts68
Price Target30.05 (18.03%)
Short Float %0.34%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend0.7
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)0.91%
PT rev (3m)5.42%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)67.48%
EPS NY rev (1m)3.39%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.65 | ||
| P/FCF | 6.27 | ||
| P/OCF | 4.59 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)2.06
EY8.09%
EPS(NY)2.48
Fwd EY9.75%
FCF(TTM)4.06
FCFY15.94%
OCF(TTM)5.55
OCFY21.79%
SpS39.31
BVpS26.73
TBVpS-3.23
PEG (NY)0.69
PEG (5Y)N/A
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%
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 Turnover0.62
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 | 1.79 |
F-Score6
WACC5.12%
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)17.17%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%30%
EPS Next Y17.89%
EPS Next 2Y13.69%
EPS Next 3Y14.86%
EPS Next 5Y13.34%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%0.55%
Revenue Next Year1.46%
Revenue Next 2Y2.28%
Revenue Next 3Y2.99%
Revenue Next 5Y3.78%
EBIT growth 1Y2.71%
EBIT growth 3Y-10.72%
EBIT growth 5Y-11.17%
EBIT Next Year100.38%
EBIT Next 3Y31.03%
EBIT Next 5Y19.02%
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%