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

• Market Cap: €11.70B
• Dividend Yield: 3.54%
• Average Volume (3M): 529.60K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.60
• 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: €42.58
• Price Target Upside: 5.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €43.00 ▲(6.78% Upside)

The overall stock score of 64 reflects a stable financial performance with opportunities for improvement in profitability and cash flow management. The technical analysis indicates bearish momentum, which is a concern. However, the valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Stable revenue growth indicates consistent demand for the company's products and services, supporting long-term business sustainability and market presence.

Strategic Partnerships

Strategic partnerships enhance the company's capability to deliver advanced renal care solutions and expand its market reach, fostering innovation and growth.

Leadership Transition

The appointment of a new Chief Medical Officer with a strong background in biotech could drive innovation and strengthen leadership, positively impacting long-term strategic direction.

Negative Factors

Profitability Margins

Low profitability margins indicate challenges in cost management and pricing power, which could hinder the company's ability to reinvest in growth and innovation.

Free Cash Flow Decline

Declining free cash flow growth could impact the company's liquidity and ability to fund operations or strategic initiatives, posing a risk to financial flexibility.

Modest Returns on Equity

Modest ROE indicates that the company may not be efficiently using shareholder capital to generate profits, potentially affecting investor confidence and long-term value creation.

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

Fresenius Medical Care AG & Co. KGaA demonstrates stable revenue growth and operational efficiency, but profitability margins are relatively low. The balance sheet reflects a balanced leverage position, though returns on equity are modest. Cash flow generation is adequate, but declining free cash flow growth poses a potential risk. Overall, the company maintains financial stability with opportunities for enhancing profitability and cash flow management.

Income Statement

Fresenius Medical Care AG & Co. KGaA shows a stable revenue growth trajectory with a TTM revenue growth rate of 0.64%. The gross profit margin is consistent at around 24.7%, indicating stable cost management. However, the net profit margin is relatively low at 3.36%, suggesting limited profitability. EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.83 in TTM indicates a balanced approach to leveraging, although slightly higher than ideal. The return on equity (ROE) is modest at 4.70%, suggesting moderate returns on shareholder investments. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base, supporting financial stability.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 13.43% in TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is 0.49, indicating that operating cash flow adequately covers net income. The free cash flow to net income ratio of 0.75 suggests decent cash generation relative to profits, but the declining trend in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.64B	19.34B	19.45B	19.40B	17.62B	17.86B
Gross Profit	4.91B	4.76B	4.93B	5.31B	5.08B	5.54B
EBITDA	3.14B	3.21B	2.93B	3.22B	3.42B	3.83B
Net Income	718.20M	537.91M	499.00M	673.40M	969.31M	1.16B
Balance Sheet
Total Assets	30.89B	33.57B	33.93B	35.75B	34.37B	31.69B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.45B	1.54B	1.44B	1.62B	1.24B
Total Debt	10.47B	10.98B	12.05B	13.21B	13.32B	12.38B
Total Liabilities	16.98B	17.80B	19.10B	20.30B	20.39B	19.36B
Stockholders Equity	12.95B	14.58B	13.62B	15.45B	13.98B	12.33B
Cash Flow
Free Cash Flow	1.78B	1.69B	1.94B	1.44B	1.64B	2.15B
Operating Cash Flow	2.51B	2.39B	2.63B	2.17B	2.49B	4.23B
Investing Cash Flow	-408.02M	-84.94M	-544.23M	-734.73M	-1.20B	-1.33B
Financing Cash Flow	-2.18B	-2.57B	-1.86B	-1.62B	-1.02B	-2.66B

Fresenius Medical Care AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FME, the sentiment is Neutral. The current price of 40.27 is above the 20-day moving average (MA) of 37.92, above the 50-day MA of 39.43, and below the 200-day MA of 44.01, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€53.85B	18.09	10.32%	1.82%	1.47%	9.64%
SHL	67 Neutral	€47.76B	22.02	11.45%	2.13%	4.53%	10.12%
AFX	65 Neutral	€2.48B	17.08	6.79%	1.50%	7.82%	-19.80%
FME	64 Neutral	€11.70B	15.86	5.41%	3.54%	2.10%	9.19%
BAYN	54 Neutral	€44.36B	-224.07	-0.66%	0.31%	-1.87%	77.51%
SRT3	54 Neutral	€15.07B	57.26	5.01%	0.30%	5.82%	59.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%