FRESENIUS MEDICAL CARE-ADR (FMS) Stock Fundamental Analysis
NYSE:FMS - New York Stock Exchange, Inc. - US3580291066 - ADR - Currency: USD
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. FMS has an average financial health and profitability rating. 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.
Each year in the past 5 years FMS has been profitable.
In the past 5 years FMS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.03%, FMS is doing good in the industry, outperforming 65.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.84%, FMS is in the better half of the industry, outperforming 63.55% of the companies in the same industry.
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 8.14%.
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
Looking at the Profit Margin, with a value of 3.43%, FMS is in the better half of the industry, outperforming 73.83% of the companies in the same industry.
FMS's Profit Margin has declined in the last couple of years.
FMS has a better Operating Margin (7.60%) than 75.70% of its industry peers.
FMS's Operating Margin has declined in the last couple of years.
FMS has a Gross Margin of 25.14%. This is comparable to the rest of the industry: FMS outperforms 49.53% of its industry peers.
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.
The number of shares outstanding for FMS has been reduced compared to 5 years ago.
The debt/assets ratio for FMS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, 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 1.71, FMS is in line with its industry, outperforming 42.06% 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.
The Debt to FCF ratio of FMS (7.31) is better than 66.36% of its industry peers.
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 | 7.31 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.87
WACC4.56%
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.
FMS's Current ratio of 1.37 is in line compared to the rest of the industry. FMS outperforms 43.93% of its industry peers.
A Quick Ratio of 1.02 indicates that FMS should not have too much problems paying its short term obligations.
The Quick ratio of FMS (1.02) is worse than 68.22% 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 impressive 26.47% over the past year.
FMS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.60% yearly.
The Revenue has decreased by -1.15% in the past year.
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 14.56% yearly.
The Revenue is expected to grow by 3.09% on average over the next years.
EPS Next Y11.03%
EPS Next 2Y16.5%
EPS Next 3Y15.11%
EPS Next 5Y14.56%
Revenue Next Year-0.75%
Revenue Next 2Y1.54%
Revenue Next 3Y2.33%
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.
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 13.74, the valuation of FMS can be described as correct.
FMS's Price/Earnings ratio is rather cheap when compared to the industry. FMS is cheaper than 83.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of FMS to the average of the S&P500 Index (29.63), we can say FMS is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.70, FMS is valued correctly.
82.24% of the companies in the same industry are more expensive than FMS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMS is valued cheaply inside the industry as 89.72% of the companies are valued more expensively.
FMS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FMS is cheaper than 93.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 6.96 |
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 15.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y16.5%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, FMS has a reasonable but not impressive dividend return.
FMS's Dividend Yield is rather good when compared to the industry average which is at 2.95. FMS pays more dividend than 91.59% of the companies in the same industry.
FMS's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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.
The dividend of FMS decreased 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.
The dividend of FMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.99%
EPS Next 2Y16.5%
EPS Next 3Y15.11%
23.09
+0.15 (+0.65%)
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 Change2.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.55B
Analysts55
Price Target22.63 (-1.99%)
Short Float %0.2%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)6.46%
PT rev (3m)8.21%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)-7.31%
EPS NY rev (1m)2.05%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)-16.14%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 12.7 | ||
| P/S | 0.67 | ||
| P/FCF | 8.47 | ||
| P/OCF | 5.71 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.96 |
EPS(TTM)1.68
EY7.28%
EPS(NY)1.82
Fwd EY7.88%
FCF(TTM)2.73
FCFY11.81%
OCF(TTM)4.05
OCFY17.52%
SpS34.24
BVpS24.24
TBVpS-3.4
PEG (NY)1.25
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 | 1.71 |
F-Score7
WACC4.56%
ROIC/WACC0.87
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 Y11.03%
EPS Next 2Y16.5%
EPS Next 3Y15.11%
EPS Next 5Y14.56%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.89%
Revenue growth 5Y3.29%
Sales Q2Q%-3.57%
Revenue Next Year-0.75%
Revenue Next 2Y1.54%
Revenue Next 3Y2.33%
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%