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

• Market Cap: €13.54B
• Dividend Yield: 3.08%
• Average Volume (3M): 529.60K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.72
• Revenue Growth: 0.53%
• EPS Growth: 23.79%
• Country: DE
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.91
• Shares Outstanding: 293,413,450
• 10 Day Avg. Volume: 492,004
• 30 Day Avg. Volume: 529,597
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: €45.65
• Price Target Upside: -2.42% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: €48.00 ▲(2.61% Upside)

Fresenius Medical Care AG & Co. KGaA's overall stock score is driven primarily by its strong financial performance, characterized by consistent revenue growth and robust cash flow management. The technical analysis suggests moderate momentum with some resistance in the longer term. Valuation metrics are fair, providing a balanced view of the stock's potential.

Positive Factors

Revenue Growth

Consistent revenue growth at 13% indicates strong demand for dialysis products and services, supporting long-term business expansion and market leadership.

Cash Flow Management

Strong free cash flow growth of 20.07% highlights effective cash management, ensuring liquidity for investments and operational stability.

Balance Sheet Health

Improved debt-to-equity ratio of 0.75 indicates better leverage management, enhancing financial stability and reducing risk exposure.

Negative Factors

Profitability Margins

Decreasing EBIT and EBITDA margins suggest challenges in maintaining operating efficiency, potentially impacting long-term profitability.

Return on Equity

Low return on equity at 4.38% indicates limited profitability from equity, which may affect investor confidence and capital efficiency.

Net Profit Margin

While improved, a net profit margin of 3.17% remains relatively low, potentially limiting reinvestment capacity and shareholder returns.

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

Company Description

Fresenius Medical Care AG & Co. KGaA (FME) is a global healthcare company based in Germany, specializing in products and services for individuals with renal diseases. With a strong focus on dialysis, the company operates in two primary segments: the production of dialysis products, including machines and consumables, and the provision of dialysis treatment services through its extensive network of outpatient clinics and in-center facilities. Fresenius Medical Care is a leader in the renal care market, aiming to improve the quality of life for patients with chronic kidney failure.

How the Company Makes Money

Fresenius Medical Care generates revenue primarily through two key streams: the sale of dialysis products and the provision of dialysis services. The product segment includes the manufacturing and distribution of dialysis machines, dialyzers, and other related consumables, which are sold to hospitals, clinics, and other healthcare providers. The service segment involves the operation of a vast number of dialysis clinics globally, where patients receive treatment on a regular basis. Revenue from services is typically derived from reimbursement payments from government programs, private insurers, and out-of-pocket payments from patients. Additionally, the company benefits from partnerships with healthcare providers and payers, which can enhance its service delivery and expand its market reach. Factors such as an aging population, the increasing prevalence of chronic kidney disease, and advancements in dialysis technology also contribute to its earnings potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.52B	19.34B	19.45B	19.40B	17.62B	17.86B
Gross Profit	4.81B	4.76B	4.93B	5.31B	5.08B	5.54B
EBITDA	3.09B	3.21B	2.93B	3.22B	3.42B	3.83B
Net Income	656.43M	537.91M	499.00M	673.40M	969.31M	1.16B
Balance Sheet
Total Assets	31.29B	33.57B	33.93B	35.75B	34.37B	31.69B
Cash, Cash Equivalents and Short-Term Investments	2.19B	1.45B	1.54B	1.44B	1.62B	1.24B
Total Debt	11.02B	10.98B	12.05B	13.21B	13.32B	12.38B
Total Liabilities	16.96B	17.80B	19.10B	20.30B	20.39B	19.36B
Stockholders Equity	13.27B	14.58B	13.62B	15.45B	13.98B	12.33B
Cash Flow
Free Cash Flow	2.05B	1.69B	1.94B	1.44B	1.64B	2.15B
Operating Cash Flow	2.75B	2.39B	2.63B	2.17B	2.49B	4.23B
Investing Cash Flow	-578.46M	-84.94M	-544.23M	-734.73M	-1.20B	-1.33B
Financing Cash Flow	-1.51B	-2.57B	-1.86B	-1.62B	-1.02B	-2.66B

Fresenius Medical Care AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 46.78 is above the 20-day moving average (MA) of 45.76, above the 50-day MA of 44.05, and above the 200-day MA of 45.13, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 46.41 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	79 Outperform	$53.97B	24.67	11.75%	1.95%	5.85%	16.20%
FME	70 Outperform	€13.54B	20.74	4.83%	3.08%	0.53%	23.79%
MRK	68 Neutral	€49.11B	17.04	10.08%	1.92%	1.67%	9.02%
AFX	67 Neutral	€4.08B	25.78	7.48%	1.27%	5.21%	-39.36%
SRT3	64 Neutral	€14.28B	121.12	5.01%	0.31%	5.82%	55.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	45 Neutral	€26.34B	―	-10.35%	0.40%	-1.99%	-169.98%