FRESENIUS SE & CO KGAA (FRE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FRE - DE0005785604 - Common Stock
46.88 EUR
-0.77 (-1.62%)
Taking everything into account, FRE scores 4 out of 10 in our fundamental rating. FRE was compared to 26 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of FRE get a neutral evaluation. Nothing too spectacular is happening here. FRE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FRE was profitable.
- In the past year FRE had a positive cash flow from operations.
- Of the past 5 years FRE 4 years were profitable.
- In the past 5 years FRE always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.69%, FRE perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
- The Return On Equity of FRE (6.14%) is comparable to the rest of the industry.
- FRE's Return On Invested Capital of 3.26% is on the low side compared to the rest of the industry. FRE is outperformed by 69.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FRE is below the industry average of 6.45%.
- The last Return On Invested Capital (3.26%) for FRE is above the 3 year average (1.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 6.14% | ||
| ROIC | 3.26% |
ROA(3y)0.52%
ROA(5y)1.33%
ROE(3y)2%
ROE(5y)5.13%
ROIC(3y)1.83%
ROIC(5y)2.61%
1.3 Margins
- The Profit Margin of FRE (5.11%) is better than 92.31% of its industry peers.
- In the last couple of years the Profit Margin of FRE has declined.
- With an excellent Operating Margin value of 9.76%, FRE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- FRE's Operating Margin has declined in the last couple of years.
- The Gross Margin of FRE (24.99%) is comparable to the rest of the industry.
- FRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.76% | ||
| PM (TTM) | 5.11% | ||
| GM | 24.99% |
OM growth 3Y-9.84%
OM growth 5Y-8.98%
PM growth 3Y-23.64%
PM growth 5Y-16.51%
GM growth 3Y-3.58%
GM growth 5Y-3.36%
2. Health
2.1 Basic Checks
- FRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, FRE has about the same amount of shares outstanding.
- FRE has more shares outstanding than it did 5 years ago.
- FRE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.06 indicates that FRE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of FRE (2.06) is comparable to the rest of the industry.
- The Debt to FCF ratio of FRE is 11.17, which is on the high side as it means it would take FRE, 11.17 years of fcf income to pay off all of its debts.
- FRE has a worse Debt to FCF ratio (11.17) than 61.54% of its industry peers.
- FRE has a Debt/Equity ratio of 0.61. This is a neutral value indicating FRE is somewhat dependend on debt financing.
- The Debt to Equity ratio of FRE (0.61) is better than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.61
WACC5.33%
2.3 Liquidity
- FRE has a Current Ratio of 1.26. This is a normal value and indicates that FRE is financially healthy and should not expect problems in meeting its short term obligations.
- FRE has a better Current ratio (1.26) than 69.23% of its industry peers.
- FRE has a Quick Ratio of 1.26. This is a bad value and indicates that FRE is not financially healthy enough and could expect problems in meeting its short term obligations.
- FRE has a better Quick ratio (0.99) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- FRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 215.74%, which is quite impressive.
- Measured over the past years, FRE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.29% on average per year.
- The Revenue has been growing slightly by 2.13% in the past year.
- The Revenue has been decreasing by -9.22% on average over the past years.
EPS 1Y (TTM)215.74%
EPS 3Y-2.62%
EPS 5Y-2.29%
EPS Q2Q%20.29%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y-16.51%
Revenue growth 5Y-9.22%
Sales Q2Q%2.22%
3.2 Future
- FRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.78% yearly.
- FRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y13.8%
EPS Next 2Y12.74%
EPS Next 3Y11.84%
EPS Next 5Y10.78%
Revenue Next Year4.48%
Revenue Next 2Y4.84%
Revenue Next 3Y4.86%
Revenue Next 5Y4.95%
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.
- 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
- FRE is valuated correctly with a Price/Earnings ratio of 13.75.
- Compared to the rest of the industry, the Price/Earnings ratio of FRE indicates a somewhat cheap valuation: FRE is cheaper than 73.08% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. FRE is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.25, FRE is valued correctly.
- 69.23% of the companies in the same industry are more expensive than FRE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of FRE to the average of the S&P500 Index (25.83), we can say FRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
- FRE's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRE indicates a slightly more expensive valuation: FRE is more expensive than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.02 | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
- FRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y12.74%
EPS Next 3Y11.84%
5. Dividend
5.1 Amount
- FRE has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.72, FRE pays a bit more dividend than its industry peers.
- FRE's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 59.84% of the earnings are spent on dividend by FRE. This is a bit on the high side, but may be sustainable.
DP59.84%
EPS Next 2Y12.74%
EPS Next 3Y11.84%
FRESENIUS SE & CO KGAA / FRE.DE FAQ
What is the fundamental rating for FRE stock?
ChartMill assigns a fundamental rating of 4 / 10 to FRE.DE.
What is the valuation status for FRE stock?
ChartMill assigns a valuation rating of 4 / 10 to FRESENIUS SE & CO KGAA (FRE.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for FRESENIUS SE & CO KGAA?
FRESENIUS SE & CO KGAA (FRE.DE) has a profitability rating of 5 / 10.
What is the expected EPS growth for FRESENIUS SE & CO KGAA (FRE.DE) stock?
The Earnings per Share (EPS) of FRESENIUS SE & CO KGAA (FRE.DE) is expected to grow by 13.8% in the next year.
How sustainable is the dividend of FRESENIUS SE & CO KGAA (FRE.DE) stock?
The dividend rating of FRESENIUS SE & CO KGAA (FRE.DE) is 3 / 10 and the dividend payout ratio is 59.84%.