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

• Market Cap: €11.46B
• Dividend Yield: 3.54%
• Average Volume (3M): 529.60K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.63
• Revenue Growth: 2.10%
• EPS Growth: 9.19%
• Country: DE
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.44
• Shares Outstanding: 293,413,450
• 10 Day Avg. Volume: 492,004
• 30 Day Avg. Volume: 529,597
• PEG Ratio: 0.15
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 6.72
• 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: €42.03
• Price Target Upside: 5.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.06
• Revenue Forecast (FY): €19.84B

• Rating: 58 Neutral
• Price Target: €41.00 ▲(3.04% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by mixed financial performance: a 2025 earnings rebound is offset by contracting revenue, weaker free-cash-flow momentum, and higher debt. Valuation is a relative positive with a low P/E and solid dividend yield, while technical signals are neutral and do not add strong support.

Positive Factors

Market leadership and integrated model

Fresenius’ scale and integrated clinic-plus-products model creates durable barriers: a large clinic network, recurring consumable demand, purchasing scale and long-term contracts produce steady service revenues and high switching costs, supporting stable cash flows over time.

Profitability rebound and margin improvement

The 2025 profitability rebound and improved operating margins reflect successful efficiency measures and favorable reimbursement. Sustained margin expansion would enhance cash generation and free capacity to invest in product rollout and shareholder returns despite muted top-line growth.

Structural product expansion (5008X) and strategic execution

A large-scale U.S. rollout of the 5008X CAREsystem is a structural growth lever: device adoption can drive higher-margin consumable sales, differentiate clinic offerings and deepen patient volume. Successful execution strengthens the services pipeline and future revenue mix.

Negative Factors

Revenue contraction

Two consecutive years of flat-to-declining revenue, including a ~7.6% fall in 2025, point to structural headwinds such as pricing, reimbursement or volume pressure. Persistent top-line weakness limits operating leverage and constrains durable growth and reinvestment capacity.

Weak and volatile free cash flow

A ~69% FCF decline in 2025 despite higher earnings indicates poor cash conversion, likely from working-capital swings, capex or other cash uses. Volatile FCF reduces ability to delever, fund capex, or sustain buybacks/dividends and raises execution risk over the medium term.

Rising leverage and reduced flexibility

Marked debt growth in 2025 reduces balance-sheet flexibility and increases interest and refinancing exposure. With volatile FCF and muted revenue, higher leverage constrains strategic optionality, heightens downside risk and makes funding transformation initiatives more challenging.

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

Company Description

Fresenius 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 Money

Fresenius Medical Care generates revenue primarily through two key segments: Products and Services. The Products segment includes the sale of dialysis machines, dialyzers, and other related medical equipment, which are sold to hospitals and healthcare providers globally. The Services segment comprises the operation of dialysis clinics, where the company provides treatment to patients on a fee-for-service basis. The company also benefits from long-term contracts with healthcare providers and payers, ensuring a steady income stream. Additionally, Fresenius Medical Care has formed strategic partnerships with healthcare organizations and technology firms, enhancing its capability to deliver advanced renal care solutions and expand its market reach.

Fresenius Medical Care AG & Co. KGaA Financial Statement Overview

Summary

2025 showed a meaningful profitability rebound (higher net income and improved operating margins), but revenue has been flat-to-down with a notable 2025 decline. Cash generation remains solid in level terms, yet free cash flow fell sharply in 2025 despite higher earnings, and debt increased in 2025—together limiting the overall financial strength score.

Income Statement

Revenue has been broadly flat-to-down over the last two years (2025 annual revenue down ~7.6% after a slight decline in 2024), which limits the growth profile. Profitability improved meaningfully in 2025 versus 2024 (net income up to ~€978m from ~€538m; net margin ~5.0% vs ~2.8%), and operating profitability also stepped up (EBIT margin ~9.4% vs ~7.6%). However, margins remain below earlier-cycle levels (2020–2021 showed higher net and EBITDA margins), indicating the business is not back to peak earnings power.

Balance Sheet

Leverage looks moderate overall with debt below equity in 2024–2025 (2024 debt-to-equity ~0.75), and equity remains sizable (~€14–15bn). That said, total debt increased sharply in 2025 (to ~€13.7bn from ~€11.0bn in 2024) while equity edged down, reducing balance-sheet flexibility. Returns on equity improved in 2025 (~6.8%) but are still only mid-single-digit, suggesting profitability is adequate but not strong relative to the capital base.

Cash Flow

Cash generation is solid on an absolute basis, with operating cash flow consistently around ~€2.2–€2.7bn and free cash flow ~€1.4–€1.9bn across 2021–2025. However, free cash flow growth has been volatile and negative in recent periods (down ~13% in 2024 and down ~69% in 2025), despite higher 2025 earnings—pointing to weaker cash conversion and/or higher cash uses. The longer-term picture is mixed, with a strong rebound in 2023 but uneven follow-through afterward.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.63B	19.34B	19.45B	19.40B	17.62B
Gross Profit	5.03B	4.76B	4.93B	5.31B	5.08B
EBITDA	3.34B	3.21B	2.93B	3.22B	3.42B
Net Income	978.00M	537.91M	499.00M	673.40M	969.31M
Balance Sheet
Total Assets	31.00B	33.57B	33.93B	35.75B	34.37B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.45B	1.54B	1.44B	1.62B
Total Debt	13.70B	10.98B	12.05B	13.21B	13.32B
Total Liabilities	16.72B	17.80B	19.10B	20.30B	20.39B
Stockholders Equity	13.31B	14.58B	13.62B	15.45B	13.98B
Cash Flow
Free Cash Flow	1.77B	1.69B	1.94B	1.44B	1.64B
Operating Cash Flow	2.68B	2.39B	2.63B	2.17B	2.49B
Investing Cash Flow	-693.55M	-84.94M	-544.23M	-734.73M	-1.20B
Financing Cash Flow	-1.43B	-2.57B	-1.86B	-1.62B	-1.02B

Fresenius Medical Care AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.79 is below the 20-day moving average (MA) of 40.08, above the 50-day MA of 39.36, and below the 200-day MA of 43.42, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.16 is Neutral, 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
MRK	76 Outperform	€55.78B	18.87	10.32%	1.82%	1.47%	9.64%
AFX	65 Neutral	€2.43B	16.81	6.79%	1.50%	7.82%	-19.80%
FME	58 Neutral	€11.46B	11.74	5.41%	3.54%	2.10%	9.19%
SHL	58 Neutral	€47.02B	22.28	11.45%	2.13%	4.53%	10.12%
BAYN	54 Neutral	€41.27B	-208.49	-0.66%	0.31%	-1.87%	77.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRT3	46 Neutral	€14.92B	107.11	5.01%	0.30%	5.82%	59.90%