Fresenius Medical Care AG & Co. KGaA (FME) AI Stock Analysis

• Market Cap: €13.13B
• Dividend Yield: 3.22%
• Average Volume (3M): 483.55K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.81
• Revenue Growth: 0.10%
• EPS Growth: 27.83%
• Country: DE
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): 0.84
• Shares Outstanding: 293,413,450
• 10 Day Avg. Volume: 426,951
• 30 Day Avg. Volume: 483,549
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €50.77
• Price Target Upside: 12.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 63 Neutral
• Price Target: €51.00 ▲(13.31%Upside)

Fresenius Medical Care's stock score is influenced by stable financial performance and an attractive dividend yield, despite weak technical indicators suggesting limited short-term momentum. The valuation appears fair, reflecting a balance of risks and rewards.

Positive Factors

Financial Performance

The company recorded better-than-expected results in Q1, leading to an increase in EPS estimates for 2025-26 and organic growth expectations.

Growth Opportunities

Fresenius expects to begin the rollout of 5008x in Q4, with all FME’s clinics converted by 2030, offering a significant opportunity for growth.

Operational Efficiency

Management is excited about the upcoming launch of High Volume Hemodiafiltration, which promises operational benefits and a reduction in treatment time.

Negative Factors

Investor Concerns

The lack of guideline for mid-term topline growth is the largest area of investor concern, especially with structural challenges.

Market Reaction

Expectations were running high into the CMD, and the updated targets were largely factored into the share price, resulting in a 'sell the news' reaction with shares down 5%.

Patient Volume

Excess mortality should continue to impact volumes in 2025; especially, we could see a weaker Q1 given the ongoing strong flu season.

Fresenius Medical Care AG & Co. KGaA Business Overview & Revenue Model

Company Description

Fresenius Medical Care AG & Co. KGaA (FME) is a global leader in the provision of dialysis products and services, catering to individuals with chronic kidney failure. Operating primarily in the healthcare sector, the company offers dialysis care and related products such as dialysis machines, dialyzers, and related disposables. With a comprehensive network of clinics, Fresenius Medical Care delivers life-sustaining dialysis treatment to patients across the globe, while also engaging in research and development to innovate in renal care.

How the Company Makes Money

Fresenius Medical Care generates revenue through two main streams: dialysis care services and the sale of dialysis products. The company's dialysis care services segment involves operating a vast network of dialysis clinics that provide treatment to patients with kidney failure, billing insurance companies, government programs, and patients directly for these services. The second revenue stream comes from manufacturing and selling a range of dialysis-related products, including dialysis machines, dialyzers, and other disposables used in the treatment process. Additionally, Fresenius Medical Care benefits from strategic partnerships and collaborations within the healthcare industry, which enhance its market presence and contribute to its financial performance.

Fresenius Medical Care AG & Co. KGaA Financial Statement Overview

Summary

Fresenius Medical Care shows stable financial performance with consistent revenue and profit margins, a balanced capital structure, and strong cash generation capabilities. However, growth is relatively flat, and leverage remains moderately high.

Income Statement

Fresenius Medical Care experienced a slight revenue decline of approximately 0.6% from 2023 to 2024, following a similar trend from previous years. Despite this, the company maintained a strong gross profit margin of around 24.6% in 2024, reflecting efficient cost management. However, the net profit margin decreased slightly from 2.6% in 2023 to 2.8% in 2024. The EBIT margin improved slightly, indicating better operational profitability. Overall, the income statement reveals stable but not strong growth, with consistent margins indicating good operational efficiency.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of approximately 0.75 in 2024, indicating a moderate level of leverage. The equity ratio of 43.4% suggests a balanced capital structure, though slightly lower than desirable for long-term stability. The return on equity (ROE) improved to 3.7% in 2024, reflecting better profitability. Overall, the balance sheet indicates adequate financial health with manageable leverage, but there is room for improvement in equity levels and returns.

Cash Flow

In 2024, operating cash flow decreased by 9.2% compared to 2023, yet free cash flow remained strong. The free cash flow to net income ratio was significant, indicating good cash generation relative to profits. However, the decrease in operating cash flow and free cash flow compared to previous years suggests potential challenges in maintaining cash generation levels. Overall, the cash flow statement shows a solid cash position but highlights the need for improved cash flow growth.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Fresenius Medical Care AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FME, the sentiment is Negative. The current price of 45.01 is below the 20-day moving average (MA) of 46.60, below the 50-day MA of 48.37, and above the 200-day MA of 44.10, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 31.93 is Neutral, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FME.

Fresenius Medical Care AG & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	$53.41B	25.66	11.14%	1.98%	5.83%	13.44%
MRK	74 Outperform	€49.15B	17.44	9.74%	1.95%	2.38%	3.49%
BAYN	64 Neutral	€28.45B	―	-9.56%	0.38%	-0.92%	-4.30%
FME	63 Neutral	€13.13B	21.24	4.37%	3.22%	0.10%	27.83%
AFX	62 Neutral	€4.52B	28.54	7.48%	1.19%	5.21%	-39.36%
SRT3	56 Neutral	€12.10B	127.30	3.88%	0.39%	3.80%	33.31%
Sector *	52 Neutral	$7.59B	0.18	-63.14%	2.16%	16.34%	0.64%