FRESENIUS SE & CO KGAA (FRE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FRE - DE0005785604 - Common Stock
47.94 EUR
-0.43 (-0.89%)
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. FRE has an average financial health and profitability rating. FRE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FRE was profitable.
- FRE had a positive operating cash flow in the past year.
- FRE had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years FRE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.69%, FRE is in line with its industry, outperforming 53.85% of the companies in the same industry.
- FRE has a Return On Equity (6.14%) which is in line with its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- FRE has a better Profit Margin (5.11%) than 92.31% of its industry peers.
- In the last couple of years the Profit Margin of FRE has declined.
- Looking at the Operating Margin, with a value of 9.76%, FRE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- In the last couple of years the Operating Margin of FRE has declined.
- FRE's Gross Margin of 24.99% is in line compared to the rest of the industry. FRE outperforms 57.69% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRE is destroying value.
- The number of shares outstanding for FRE remains at a similar level compared to 1 year ago.
- The number of shares outstanding for FRE has been increased compared to 5 years ago.
- The debt/assets ratio for FRE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.07 indicates that FRE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- FRE has a Altman-Z score (2.07) which is in line with its industry peers.
- FRE has a debt to FCF ratio of 11.17. This is a negative value and a sign of low solvency as FRE would need 11.17 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 11.17, FRE is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
- FRE has a Debt/Equity ratio of 0.61. This is a neutral value indicating FRE is somewhat dependend on debt financing.
- FRE has a Debt to Equity ratio of 0.61. This is amongst the best in the industry. FRE outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.61
WACC5.35%
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 Current ratio of 1.26. This is in the better half of the industry: FRE outperforms 69.23% of its industry peers.
- A Quick Ratio of 0.99 indicates that FRE may have some problems paying its short term obligations.
- FRE has a Quick ratio of 0.99. This is in the better half of the industry: FRE outperforms 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.
- The Earnings Per Share has been decreasing by -2.29% on average over the past years.
- Looking at the last year, FRE shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
- FRE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.22% yearly.
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.
- The Revenue is expected to grow by 4.95% on average over the next years.
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.
- 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 14.06 indicates a correct valuation of FRE.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FRE is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 12.53, the valuation of FRE can be described as correct.
- 73.08% of the companies in the same industry are more expensive than FRE, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRE is on the same level as its industry peers.
- 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 | 22.52 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
- FRE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.02
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%.
- Compared to an average industry Dividend Yield of 1.72, FRE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, FRE has a dividend comparable with the average S&P500 company.
| 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%.