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

• Market Cap: €11.96B
• Dividend Yield: 3.47%
• Average Volume (3M): 529.60K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.74
• Revenue Growth: 2.10%
• EPS Growth: 9.19%
• Country: DE
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.10
• Shares Outstanding: 293,413,450
• 10 Day Avg. Volume: 492,004
• 30 Day Avg. Volume: 529,597
• PEG Ratio: 3.15
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 7.68
• 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: €45.00
• Price Target Upside: 8.43% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €43.00 ▲(3.61% Upside)

The overall stock score for Fresenius Medical Care AG & Co. KGaA is driven primarily by its strong financial performance, characterized by consistent revenue growth and effective cash flow management. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is reasonable, with a moderate P/E ratio and an attractive dividend yield, but does not suggest significant undervaluation.

Positive Factors

Revenue Growth

Fresenius Medical Care's consistent revenue growth, as seen in the recent quarter, indicates strong demand for its dialysis products and services, supporting its market leadership and long-term financial health.

Cash Flow Management

Strong cash flow management, with significant free cash flow growth, enhances Fresenius Medical Care's ability to invest in growth opportunities and maintain financial stability.

Strategic Initiatives

The strategic rollout of new products like the 5008X in the U.S. market demonstrates Fresenius Medical Care's commitment to innovation and expanding its competitive edge in renal care.

Negative Factors

Profitability Margins

Decreasing EBIT and EBITDA margins suggest pressure on operating efficiency, which could impact long-term profitability unless addressed through cost management or revenue growth.

Management Transition

Leadership changes, such as the appointment of Joseph Turk, can introduce uncertainty and require time for strategic realignment, potentially affecting operational continuity.

Return on Equity

A low return on equity indicates limited profitability from equity investments, which may challenge Fresenius Medical Care's ability to generate shareholder value over the long term.

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 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 AG & Co. KGaA exhibits strong financial performance with consistent revenue growth and effective cash flow management. The company maintains a stable balance sheet with moderate leverage, despite some pressure on profitability margins.

Income Statement

Fresenius Medical Care AG & Co. KGaA shows a solid income statement performance with a consistent revenue growth rate of 13% in the TTM period. The gross profit margin is stable at around 24%, and the net profit margin has improved to 3.17% in the TTM. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating some pressure on operating efficiency.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.75, which is an improvement from previous years. The return on equity is relatively low at 4.38% in the TTM, suggesting limited profitability from equity investments. The equity ratio stands at a healthy level, indicating a stable financial position.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 20.07% in the TTM, demonstrating effective cash management. The operating cash flow to net income ratio is robust, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 81.90%, highlighting efficient conversion of income to cash.

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: Negative
• Last Price: 41.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 41.5 is below the 20-day moving average (MA) of 45.05, below the 50-day MA of 44.48, and below the 200-day MA of 45.16, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 32.34 is Neutral, neither overbought nor oversold. The STOCH value of 7.57 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	79 Outperform	€48.30B	22.66	11.46%	2.14%	4.53%	10.32%
AFX	66 Neutral	€3.83B	24.17	7.48%	1.41%	5.21%	-39.36%
MRK	66 Neutral	€49.00B	17.11	10.08%	1.95%	1.67%	9.02%
SRT3	64 Neutral	€14.33B	119.59	5.01%	0.32%	5.82%	59.90%
FME	60 Neutral	€11.96B	18.40	5.41%	3.47%	2.10%	9.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	46 Neutral	€26.28B	-7.69	-10.35%	0.40%	-1.99%	-169.98%