FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
NYSE:FMS - New York Stock Exchange, Inc. - US3580291066 - ADR
Taking everything into account, FMS scores 5 out of 10 in our fundamental rating. FMS was compared to 108 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of FMS get a neutral evaluation. Nothing too spectacular is happening here. FMS has a decent growth rate and is not valued too expensively.
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.
FMS had positive earnings in each of the past 5 years.
FMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FMS (2.03%) is better than 64.49% of its industry peers.
FMS has a better Return On Equity (4.84%) than 63.55% of its industry peers.
The Return On Invested Capital of FMS (3.95%) is comparable to the rest of the industry.
FMS had an Average Return On Invested Capital over the past 3 years of 3.63%. This is below the industry average of 8.27%.
The last Return On Invested Capital (3.95%) for FMS 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
The Profit Margin of FMS (3.43%) is better than 72.90% of its industry peers.
In the last couple of years the Profit Margin of FMS has declined.
FMS has a better Operating Margin (7.60%) than 76.64% of its industry peers.
In the last couple of years the Operating Margin of FMS has declined.
The Gross Margin of FMS (25.14%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FMS has declined.
| 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 FMS 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
FMS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that FMS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, FMS is in line with its industry, outperforming 43.93% of the companies in the same industry.
FMS has a debt to FCF ratio of 7.31. This is a slightly negative value and a sign of low solvency as FMS would need 7.31 years to pay back of all of its debts.
FMS's Debt to FCF ratio of 7.31 is fine compared to the rest of the industry. FMS outperforms 67.29% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that FMS is somewhat dependend on debt financing.
The Debt to Equity ratio of FMS (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.31 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.86
WACC4.57%
2.3 Liquidity
FMS has a Current Ratio of 1.37. This is a normal value and indicates that FMS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, FMS perfoms like the industry average, outperforming 44.86% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that FMS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, FMS is doing worse than 69.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
FMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.47%, which is quite impressive.
FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.60% yearly.
FMS shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
The Revenue has been growing slightly by 3.29% on average over the past years.
EPS 1Y (TTM)26.47%
EPS 3Y-17.86%
EPS 5Y-9.6%
EPS Q2Q%43.86%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.89%
Revenue growth 5Y3.29%
Sales Q2Q%-3.57%
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 15.31% yearly.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y8.8%
EPS Next 2Y15.55%
EPS Next 3Y14.62%
EPS Next 5Y15.31%
Revenue Next Year-0.7%
Revenue Next 2Y1.5%
Revenue Next 3Y2.29%
Revenue Next 5Y3.59%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.91, the valuation of FMS can be described as correct.
Based on the Price/Earnings ratio, FMS is valued cheaper than 83.18% of the companies in the same industry.
FMS is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
FMS is valuated correctly with a Price/Forward Earnings ratio of 13.07.
Based on the Price/Forward Earnings ratio, FMS is valued cheaply inside the industry as 80.37% 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 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
89.72% of the companies in the same industry are more expensive than FMS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FMS is valued cheaper than 93.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 7.03 |
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 FMS's earnings are expected to grow with 14.62% in the coming years.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y15.55%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
FMS has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 2.87, FMS pays a better dividend. On top of this FMS pays more dividend than 93.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, FMS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of FMS has a limited annual growth rate of 1.12%.
FMS has been paying a dividend for at least 10 years, so it has a reliable track record.
FMS has decreased its dividend recently.
Dividend Growth(5Y)1.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
52.99% 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.
DP52.99%
EPS Next 2Y15.55%
EPS Next 3Y14.62%
FRESENIUS MEDICAL CARE-ADR
NYSE:FMS (1/21/2025, 6:40:00 PM)
After market: 23.09 0 (0%)23.09
+0.02 (+0.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.92%
Inst Owner Change-0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.55B
Analysts55.71
Price Target21.26 (-7.93%)
Short Float %0.2%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.12
Dividend Growth(5Y)1.12%
DP52.99%
Div Incr Years1
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)0.11%
PT rev (3m)-0.99%
EPS NQ rev (1m)4.74%
EPS NQ rev (3m)-8.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-17.21%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.07 | ||
| P/S | 0.68 | ||
| P/FCF | 8.57 | ||
| P/OCF | 5.78 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)1.66
EY7.19%
EPS(NY)1.77
Fwd EY7.65%
FCF(TTM)2.69
FCFY11.66%
OCF(TTM)4
OCFY17.31%
SpS33.82
BVpS23.95
TBVpS-3.36
PEG (NY)1.58
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 | 1.72 |
F-Score7
WACC4.57%
ROIC/WACC0.86
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)26.47%
EPS 3Y-17.86%
EPS 5Y-9.6%
EPS Q2Q%43.86%
EPS Next Y8.8%
EPS Next 2Y15.55%
EPS Next 3Y14.62%
EPS Next 5Y15.31%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.89%
Revenue growth 5Y3.29%
Sales Q2Q%-3.57%
Revenue Next Year-0.7%
Revenue Next 2Y1.5%
Revenue Next 3Y2.29%
Revenue Next 5Y3.59%
EBIT growth 1Y12.54%
EBIT growth 3Y-17.06%
EBIT growth 5Y-11.17%
EBIT Next Year102.54%
EBIT Next 3Y33.79%
EBIT Next 5Y20.77%
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%