FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMS - US3580291066 - ADR
22.02 USD
-0.31 (-1.39%)
21.97 USD
-0.05 (-0.23%)
We assign a fundamental rating of 5 out of 10 to FMS. FMS was compared to 103 industry peers in the Health Care Providers & Services industry. FMS has an average financial health and profitability rating. 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.
- FMS had positive earnings in each of the past 5 years.
- In the past 5 years FMS always reported a positive cash flow from operatings.
1.2 Ratios
- FMS has a Return On Assets of 2.33%. This is comparable to the rest of the industry: FMS outperforms 59.22% of its industry peers.
- FMS's Return On Equity of 5.55% is fine compared to the rest of the industry. FMS outperforms 61.16% of its industry peers.
- FMS has a Return On Invested Capital (3.95%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FMS is significantly below the industry average of 9.21%.
- The last Return On Invested Capital (3.95%) for FMS is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.55% | ||
| ROIC | 3.95% |
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 3.66%. This is in the better half of the industry: FMS outperforms 72.82% of its industry peers.
- In the last couple of years the Profit Margin of FMS has declined.
- FMS has a better Operating Margin (7.19%) than 72.82% of its industry peers.
- In the last couple of years the Operating Margin of FMS has declined.
- FMS has a Gross Margin (25.00%) 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 | 7.19% | ||
| PM (TTM) | 3.66% | ||
| GM | 25% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMS 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.
- 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.
- The Altman-Z score of FMS (1.77) is comparable to the rest of the industry.
- The Debt to FCF ratio of FMS is 5.97, which is a neutral value as it means it would take FMS, 5.97 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.97, FMS is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
- FMS has a Debt/Equity ratio of 0.73. This is a neutral value indicating FMS is somewhat dependend on debt financing.
- FMS has a Debt to Equity ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.97 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.78
WACC5.04%
2.3 Liquidity
- FMS has a Current Ratio of 1.36. 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 of 1.36. This is comparable to the rest of the industry: FMS outperforms 50.49% of its industry peers.
- FMS has a Quick Ratio of 1.36. This is a bad value and indicates that FMS is not financially healthy enough and could expect problems in meeting its short term obligations.
- FMS has a worse Quick ratio (1.00) than 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.77% over the past year.
- FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.43% yearly.
- Looking at the last year, FMS shows a small growth in Revenue. The Revenue has grown by 2.10% 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)16.77%
EPS 3Y-1.97%
EPS 5Y-6.43%
EPS Q2Q%34.15%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.15%
Revenue growth 5Y2.04%
Sales Q2Q%2.63%
3.2 Future
- FMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
- Based on estimates for the next years, FMS will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y21.73%
EPS Next 2Y12.96%
EPS Next 3Y13.16%
EPS Next 5Y12.37%
Revenue Next Year1.57%
Revenue Next 2Y2.26%
Revenue Next 3Y2.91%
Revenue Next 5Y3.81%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 10.01, which indicates a very decent valuation of FMS.
- Compared to the rest of the industry, the Price/Earnings ratio of FMS indicates a rather cheap valuation: FMS is cheaper than 92.23% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. FMS is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.09 indicates a reasonable valuation of FMS.
- Based on the Price/Forward Earnings ratio, FMS is valued cheaper than 90.29% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of FMS to the average of the S&P500 Index (25.98), we can say FMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FMS is valued cheaply inside the industry as 89.32% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, FMS is valued cheaper than 94.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 6.31 |
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 13.16% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.16%
5. Dividend
5.1 Amount
- FMS has a Yearly Dividend Yield of 3.84%.
- Compared to an average industry Dividend Yield of 0.45, FMS pays a better dividend. On top of this FMS pays more dividend than 99.03% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, FMS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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
- 58.83% of the earnings are spent on dividend by FMS. 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.
DP58.83%
EPS Next 2Y12.96%
EPS Next 3Y13.16%
FRESENIUS MEDICAL CARE-ADR / FMS FAQ
What is the fundamental rating for FMS stock?
ChartMill assigns a fundamental rating of 5 / 10 to FMS.
Can you provide the valuation status for FRESENIUS MEDICAL CARE-ADR?
ChartMill assigns a valuation rating of 8 / 10 to FRESENIUS MEDICAL CARE-ADR (FMS). This can be considered as Undervalued.
What is the profitability of FMS stock?
FRESENIUS MEDICAL CARE-ADR (FMS) has a profitability rating of 5 / 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 21.73% in the next year.
Is the dividend of FRESENIUS MEDICAL CARE-ADR sustainable?
The dividend rating of FRESENIUS MEDICAL CARE-ADR (FMS) is 6 / 10 and the dividend payout ratio is 58.83%.