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

• Market Cap: €26.29B
• Dividend Yield: 2.12%
• Average Volume (3M): 636.27K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.72
• Revenue Growth: -0.59%
• EPS Growth: N/A
• Country: DE
• Employees: 175,202
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.86
• Shares Outstanding: 563,237,300
• 10 Day Avg. Volume: 628,917
• 30 Day Avg. Volume: 636,268
• 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: €51.92
• Price Target Upside: 10.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: €51.00 ▲(8.14% Upside)

Fresenius SE & Co. KGaA's overall stock score is driven by strong technical analysis, indicating bullish momentum, despite overbought signals. Financial performance shows robust revenue growth but highlights challenges in profitability and cash flow. The valuation suggests the stock might be overvalued, with a moderate dividend yield.

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 multiple key streams. The largest contributor is Fresenius Medical Care, which earns money from the sale of dialysis machines, consumables, and the provision of dialysis services to patients worldwide. Fresenius Kabi contributes significantly through the sale of intravenous drugs, infusion therapies, and nutritional products, often through long-term contracts with hospitals and healthcare providers. Additionally, Fresenius Helios generates revenue by operating hospitals and outpatient facilities, charging for patient services and treatments. The company also benefits from strategic partnerships with healthcare organizations, research institutions, and government agencies that enhance its service offerings and market reach, contributing to stable and diversified revenue generation.

Fresenius SE & Co. KGaA Financial Statement Overview

Summary

Fresenius SE & Co. KGaA demonstrates strong revenue growth and operational efficiency, but faces challenges in profitability and cash flow management. The balance sheet is stable with balanced leverage, yet low return on equity indicates room for improvement in profitability.

Income Statement

Fresenius SE & Co. KGaA shows a mixed performance in its income statement. The TTM data indicates a strong revenue growth rate of 54.7%, suggesting a significant recovery or expansion. However, the net profit margin is relatively low at 1.91%, indicating challenges in converting revenue into profit. The gross profit margin is stable at 24.48%, and the EBIT and EBITDA margins are moderate, reflecting operational efficiency but also room for improvement in cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.70, indicating a balanced approach to leveraging. Return on equity is low at 2.20%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 44.23%, showing a solid equity base but highlighting potential risks if debt levels increase.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 25.88%, which could be a concern for future investments and debt servicing. The operating cash flow to net income ratio is 1.96, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.64, reflecting adequate cash flow management despite the decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.23B	21.83B	22.30B	40.84B	37.52B	36.28B
Gross Profit	5.65B	5.38B	5.06B	10.72B	10.31B	10.32B
EBITDA	3.33B	2.95B	2.73B	3.09B	6.84B	7.19B
Net Income	1.13B	471.00M	-594.00M	1.37B	1.82B	1.71B
Balance Sheet
Total Assets	41.32B	43.55B	45.28B	76.42B	71.96B	66.65B
Cash, Cash Equivalents and Short-Term Investments	1.39B	2.05B	2.56B	2.35B	2.75B	2.00B
Total Debt	12.85B	13.58B	15.83B	27.76B	27.16B	25.91B
Total Liabilities	22.38B	23.26B	25.63B	44.20B	42.67B	40.62B
Stockholders Equity	18.28B	19.54B	19.00B	20.41B	19.00B	16.95B
Cash Flow
Free Cash Flow	1.24B	1.52B	3.32B	2.28B	3.03B	4.14B
Operating Cash Flow	2.21B	2.45B	4.46B	4.20B	5.08B	6.55B
Investing Cash Flow	-559.00M	-510.00M	-3.19B	-2.61B	-2.82B	-3.01B
Financing Cash Flow	-1.51B	-2.18B	-1.38B	-1.60B	-1.45B	-3.12B

Fresenius SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.16
• 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:FRE, the sentiment is Positive. The current price of 47.16 is above the 20-day moving average (MA) of 46.97, above the 50-day MA of 45.77, and above the 200-day MA of 40.70, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 76.70 is Neutral, 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
SHL	77 Outperform	$53.16B	24.60	11.75%	1.99%	5.85%	16.20%
FME	70 Outperform	€13.24B	20.37	4.83%	3.16%	0.53%	23.79%
SRT	70 Neutral	€14.28B	122.16	3.88%	0.40%	3.80%	33.31%
FRE	69 Neutral	€26.29B	23.61	7.30%	2.12%	-0.59%	―
MRK	65 Neutral	€52.54B	18.35	10.08%	1.82%	1.67%	9.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAYN	50 Neutral	€28.34B	―	-10.35%	0.38%	-1.99%	-169.98%