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Fresenius Medical Care AG & Co. KGaA (DE:FME)
XETRA:FME

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

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Fresenius Medical Care AG & Co. KGaA

(XETRA:FME)

Rating:68Neutral
Price Target:
Fresenius Medical Care presents a stable but modest investment opportunity. The company's financial performance is solid, with consistent margins and cash generation, but growth remains flat. Technical indicators point to a mixed outlook, with long-term potential but current bearish momentum. The valuation is slightly high, mitigated by a decent dividend yield, making it a reasonable option for investors seeking stability in the healthcare sector.
Positive Factors
Earnings
The company recorded better-than-expected results in Q1, leading to an increase in EPS estimates for 2025-26 and organic growth expectations.
Market Position
The company is the only one with FDA-approved technology for high-volume hemodiafiltration, positioning it advantageously in the market.
Technological Advancements
The introduction of new technology, such as the 5008X machine, is expected to support clinic utilization and improve patient care, which can enhance operational efficiency.
Negative Factors
Market Risks
Price cuts in China due to the new Value-Based Procurement are offsetting FME25 savings in Care Enablement.
Patient Coverage
Premium subsidies for ACA exchanges are likely to end in 2026, which could negatively impact the coverage for some patients and slightly affect EBIT.
Regulatory Challenges
There is continued caution on the dialysis market, which is seen as structurally challenged and at risk of reimbursement changes.

Fresenius Medical Care AG & Co. KGaA (FME) vs. iShares MSCI Germany ETF (EWG)

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

Company DescriptionFresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America, and internationally. It offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. The company also develops, manufactures, and distributes dialysis products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, and systems for water treatment; and non-dialysis products, such as acute cardiopulmonary and apheresis products. In addition, it develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. As of February 23, 2022, it operated 4,171 outpatient dialysis clinics in approximately 150 countries. Fresenius Medical Care AG & Co. KGaA was incorporated in 1996 and is headquartered in Bad Homburg, Germany.
How the Company Makes MoneyFresenius Medical Care AG & Co. KGaA generates revenue primarily through its healthcare services and products. The company earns a significant portion of its income by providing dialysis services to patients, which includes both in-center hemodialysis treatments and home dialysis options. These services are often reimbursed through government health programs and private insurance. Additionally, FME produces and sells dialysis-related products, such as machines and consumables, to healthcare facilities and clinics globally. Strategic partnerships and agreements with healthcare providers and payers also play a crucial role in expanding its market reach and revenue generation. The company's integrated approach, combining services and products, allows it to capture value across the entire dialysis treatment chain.

Fresenius Medical Care AG & Co. KGaA Financial Statement Overview

Summary
Fresenius Medical Care demonstrates stable financial performance with consistent revenue and profit margins. The company maintains a balanced capital structure and strong cash generation capabilities, though growth is relatively flat, and leverage remains moderately high. The overall financial health is solid, but future improvements could focus on accelerating growth and enhancing returns.
Income Statement
70
Positive
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
65
Positive
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
68
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.49B19.34B19.45B19.40B17.62B17.86B
Gross Profit
4.77B4.76B4.93B5.31B5.08B5.54B
EBIT
1.41B1.39B1.37B-258.36M301.32M529.00M
EBITDA
3.06B3.21B2.93B3.22B3.42B3.83B
Net Income Common Stockholders
618.16M537.91M499.00M673.40M969.31M1.16B
Balance SheetCash, Cash Equivalents and Short-Term Investments
846.38M1.45B1.54B1.44B1.62B1.24B
Total Assets
24.16B33.57B33.93B35.75B34.37B31.69B
Total Debt
7.72B10.98B12.05B13.21B13.32B12.38B
Net Debt
6.87B9.83B10.65B11.94B11.84B11.30B
Total Liabilities
13.25B17.80B19.10B20.30B20.39B19.36B
Stockholders Equity
9.90B14.58B13.62B15.45B13.98B12.33B
Cash FlowFree Cash Flow
1.98B1.69B1.94B756.00M806.00M2.15B
Operating Cash Flow
2.42B2.39B2.63B2.17B2.49B4.23B
Investing Cash Flow
-108.14M-84.94M-544.23M-734.73M-1.20B-1.33B
Financing Cash Flow
-976.16M-2.57B-1.86B-1.62B-1.02B-2.66B

Fresenius Medical Care AG & Co. KGaA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.52
Price Trends
50DMA
46.00
Positive
100DMA
45.07
Positive
200DMA
41.80
Positive
Market Momentum
MACD
1.30
Positive
RSI
55.34
Neutral
STOCH
17.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FME, the sentiment is Positive. The current price of 50.52 is above the 20-day moving average (MA) of 50.35, above the 50-day MA of 46.00, and above the 200-day MA of 41.80, indicating a neutral trend. The MACD of 1.30 indicates Positive momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FME.

Fresenius Medical Care AG & Co. KGaA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEFME
68
Neutral
€14.68B23.754.37%2.87%0.10%27.83%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
€37.47B50.332.02%5.40%
€24.52B-9.56%0.44%
€50.02B17.709.74%1.92%
€83.12B106.1621.45%0.44%
€12.80B149.793.55%0.36%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:FME
Fresenius Medical Care AG & Co. KGaA
50.52
12.21
31.88%
GB:0BFA
BASF SE
41.94
-2.91
-6.49%
GB:0P6S
Bayer
25.35
-2.79
-9.91%
GB:0O14
Merck KGaA
115.40
-53.69
-31.75%
GB:0NI1
Rheinmetall
1,825.22
1,303.88
250.10%
GB:0NIR
Sartorius
204.80
-45.23
-18.09%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.