Fresenius SE & Co. KGaA (FRE) AI Stock Analysis

• Market Cap: €24.69B
• Dividend Yield: 2.26%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 59.1
• Beta (1Y): 0.74
• Revenue Growth: -18.90%
• EPS Growth: N/A
• Country: DE
• Employees: 175,202
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): 0.87
• Shares Outstanding: 563,237,300
• 10 Day Avg. Volume: 926,632
• 30 Day Avg. Volume: 1,002,587
• PEG Ratio: -5.68
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.54
• 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: €49.44
• Price Target Upside: 11.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 61 Neutral
• Price Target: €45.00 ▲(1.60%Upside)

Fresenius SE & Co. KGaA exhibits solid operational efficiency and cash flow generation. However, the low net income margins and high P/E ratio indicate challenges in profitability and valuation. Strong technical indicators support a positive outlook, but the overvaluation may limit upside potential.

Fresenius SE & Co. KGaA Business Overview & Revenue Model

Company Description

Fresenius SE & Co. KGaA, a health care company, provides products and services for dialysis, hospitals, and outpatient medical care. It operates through four segments: Fresenius Medical Care, Fresenius Kabi, Fresenius Helios, and Fresenius Vamed. The Fresenius Medical Care segment offers products and services for patients with chronic kidney failure. This segment provides dialyzers, hemodialysis machines, and related disposable products, as well as dialysis-related services. The Fresenius Kabi segment engages in the therapy and care of therapy and care ill patients. This segment offers IV drugs, including intravenously administered generic drugs for oncology, anesthetics, analgesics, anti-infectives, and critical care; parenteral and enteral nutrition products; infusion solutions and blood volume substitutes for infusion therapy; biosimilars, a biological medicine for autoimmune and oncology diseases; medical devices and disposal used to administer IV generic drugs, infusion therapies, and clinical nutrition products; and transfusion products for collection of blood components and corporeal therapies. The Fresenius Helios segment operates 90 hospitals, approximately 130 outpatient clinics, and 6 prevention centers in Germany; and 49 hospitals, 88 outpatient clinics, and approximately 300 risk prevention centers in Spain. This segment also provides services in the field of fertility treatments through 33 clinics and additional 39 sites across 10 countries on 3 continents. The Fresenius Vamed segment manages projects and offers services for hospitals and other health care facilities. This segment provides project development, planning, and turnkey construction services, as well as maintenance, technical management, and operational management services. The company was formerly known as Fresenius SE and changed its name to Fresenius SE & Co. KGaA in January 2011. Fresenius SE & Co. KGaA was founded in 1912 and is headquartered in Bad Homburg vor der Höhe, Germany.

How the Company Makes Money

Fresenius SE & Co. KGaA generates revenue through its diversified healthcare operations. Fresenius Medical Care, the largest segment, earns income from providing dialysis services and selling dialysis-related products like machines, dialyzers, and disposables. Fresenius Kabi contributes to revenue through the sale of pharmaceuticals, medical devices, and clinical nutrition products. Fresenius Helios generates income by operating hospitals and providing a range of medical services, mainly in Germany and Spain. Lastly, Fresenius Vamed earns through project management, consulting, and engineering services for healthcare facilities, including hospital construction and modernization projects. The company's earnings are bolstered by strategic partnerships in various regions and a focus on expanding its global footprint in the healthcare sector.

Fresenius SE & Co. KGaA Financial Statement Overview

Summary

Fresenius SE & Co. KGaA demonstrates stable revenue growth and operational efficiency, with strong cash flow generation capabilities. However, the company faces challenges with low net income margins and ROE, suggesting potential areas for improvement in profitability. The balance sheet reflects moderate leverage and a solid equity base, positioning the company well for future growth.

Income Statement

The TTM (Trailing-Twelve-Months) gross profit margin is 24.5%, with a net profit margin of 1.9%. The revenue growth rate shows a moderate increase of 1.3% from the previous year. EBIT and EBITDA margins stand at 8.7% and 14.0%, respectively, indicating stable operational efficiency despite a slight decline in net income. However, past fluctuations in net income suggest some volatility.

Balance Sheet

The debt-to-equity ratio is 0.70, reflecting a moderate level of leverage, which is common in the industry. Return on Equity (ROE) is 2.2%, which is relatively low, indicating limited efficiency in generating profits from equity. The equity ratio is 44.9%, suggesting a stable capital structure dominated by equity.

Cash Flow

The free cash flow growth rate is 9.5%, showing positive cash flow management. The operating cash flow to net income ratio is 6.2, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 3.95 further emphasizes robust cash flow productivity, despite net income variability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.11B	21.83B	22.30B	40.84B	37.52B	36.28B
	Gross Profit
5.41B	5.38B	5.06B	10.72B	10.31B	10.32B
	EBIT
1.91B	1.78B	1.14B	3.51B	4.16B	4.38B
	EBITDA
3.09B	2.95B	2.73B	3.09B	6.84B	7.19B
	Net Income Common Stockholders
422.00M	471.00M	-594.00M	1.37B	1.82B	1.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02B	2.05B	2.56B	2.35B	2.75B	2.00B
	Total Assets
44.28B	43.55B	45.28B	76.42B	71.96B	66.65B
	Total Debt
14.50B	13.58B	15.83B	27.76B	27.16B	25.91B
	Net Debt
13.48B	11.53B	13.27B	25.59B	24.55B	24.08B
	Total Liabilities
24.17B	23.26B	25.63B	44.20B	42.67B	40.62B
	Stockholders Equity
19.44B	19.54B	19.00B	20.41B	19.00B	16.95B
Cash Flow		Free Cash Flow
1.67B	1.52B	3.32B	2.28B	3.03B	4.14B
	Operating Cash Flow
2.61B	2.56B	4.46B	4.20B	5.08B	6.55B
	Investing Cash Flow
-517.00M	-510.00M	-3.19B	-2.61B	-2.82B	-3.01B
	Financing Cash Flow
-676.00M	-2.18B	-1.38B	-1.60B	-1.45B	-3.12B

Fresenius SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FRE, the sentiment is Positive. The current price of 44.29 is above the 20-day moving average (MA) of 42.72, above the 50-day MA of 40.39, and above the 200-day MA of 35.81, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 88.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FRE.

Fresenius SE & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRE	61 Neutral	€24.69B	59.12	6.28%	2.26%	-18.90%	―
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
0P6S		€25.97B	―	-9.56%	0.42%	―	―
0H9X		€14.76B	23.88	4.37%	2.86%	―	―
0O14		€50.17B	17.80	9.74%	1.91%	―	―
0NIQ		€12.84B	118.27	3.55%	0.44%	―	―
SEMHF		$59.36B	26.14	11.14%	1.99%	―	―