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Fresenius Medical Care Corp. (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
72Outperform
Fresenius Medical Care (FMS) vs. S&P 500 (SPY)
Market Cap
$13.02B
Dividend Yield1.89%
Average Volume (3M)364.01K
Price to Earnings (P/E)23.6
Beta (1Y)0.64
Revenue Growth-0.57%
EPS Growth8.25%
CountryUS
Employees111,513
SectorHealthcare
Sector Strength74
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.99
Shares Outstanding586,826,900
10 Day Avg. Volume346,760
30 Day Avg. Volume364,009
Financial Highlights & Ratios
PEG Ratio2.86
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.45Price Target Upside15.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Fresenius Medical Care Business Overview & Revenue Model
Company DescriptionFresenius 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 MoneyFresenius Medical Care generates revenue primarily through two main segments: Healthcare Services and Healthcare Products. The Healthcare Services segment includes the operation of a vast network of dialysis clinics that provide treatment to patients, for which the company receives payments from health insurers, government healthcare programs, and private payers. Meanwhile, the Healthcare Products segment involves the sale of dialysis machines, dialyzers, and other related medical supplies to healthcare providers and clinics worldwide. Additionally, Fresenius Medical Care benefits from strategic partnerships and contracts with healthcare institutions and governments, further supporting its revenue streams and market presence.
Fresenius Medical Care Financial Statement Overview
Summary
Fresenius Medical Care shows stable financial health with consistent revenue and strong operating cash flow. There is a notable improvement in EBIT and return on equity, though the company is reliant on debt and net profitability is relatively low.Income Statement
Fresenius Medical Care has demonstrated consistent revenue performance with a slight decline from $19.5B in 2023 to $19.3B in 2024. Gross profit margins have been stable around 24-25%. The company has shown resilience in EBIT and EBITDA margins, with a notable recovery in EBIT from negative in 2022 to $1.39B in 2024. However, net income growth has been moderate, and the net profit margin remains relatively low at around 2.8% in 2024.75
Positive
Balance Sheet
The balance sheet shows a stable equity position with stockholders' equity increasing to $14.6B in 2024. The debt-to-equity ratio is relatively high at approximately 0.75, indicating a significant reliance on debt financing. The equity ratio is around 43.4%, which is stable but suggests moderate leverage. Return on equity improved to 3.7% in 2024, indicating better profitability on shareholder capital.68
Positive
Cash Flow
Operating cash flow remains strong at $2.39B in 2024, supporting the company's liquidity. Free cash flow generation is robust, with a significant free cash flow to net income ratio of over 3x in 2024, highlighting efficient cash conversion. However, free cash flow declined from 2023 levels, posing a potential concern for future investments.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 19.34B | 19.45B | 19.40B | 17.62B | 17.86B | Gross Profit |
| 4.76B | 4.93B | 5.31B | 5.08B | 5.54B | EBIT |
| 1.39B | 1.37B | -258.36M | 301.32M | 529.00M | EBITDA |
| 3.21B | 3.21B | 1.58B | 3.55B | 4.13B | Net Income Common Stockholders |
| 537.91M | 499.00M | 673.40M | 969.31M | 1.16B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.45B | 1.54B | 1.44B | 1.62B | 1.24B | Total Assets |
| 33.57B | 33.93B | 35.75B | 34.37B | 31.69B | Total Debt |
| 10.98B | 12.05B | 13.21B | 13.32B | 12.38B | Net Debt |
| 9.83B | 10.67B | 11.94B | 11.84B | 11.30B | Total Liabilities |
| 17.80B | 19.10B | 20.30B | 20.39B | 19.36B | Stockholders Equity |
| 14.58B | 13.62B | 15.45B | 13.98B | 12.33B |
| Cash Flow | Free Cash Flow | |||
| 1.69B | 1.94B | 756.00M | 806.00M | 2.15B | Operating Cash Flow |
| 2.39B | 2.63B | 2.17B | 2.49B | 4.23B | Investing Cash Flow |
| -84.94M | -544.23M | -734.73M | -1.20B | -1.33B | Financing Cash Flow |
| -2.57B | -1.86B | -1.62B | -1.02B | -2.66B |
Fresenius Medical Care Technical Analysis
Neutral
23.82
Price Trends
24.05
Negative
23.53
Positive
21.73
Positive
Market Momentum
0.25
Negative
56.98
Neutral
71.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Neutral. The current price of 23.82 is below the 20-day moving average (MA) of 24.29, below the 50-day MA of 24.05, and above the 200-day MA of 21.73, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 71.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMS.
Fresenius Medical Care Risk Analysis
Fresenius Medical Care disclosed 26 risk factors in its most recent earnings report. Fresenius Medical Care reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fresenius Medical Care Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.93B | 10.88 | 17.82% | 0.44% | 10.82% | 65.64% | |
73 Outperform | $83.35B | 15.39 | -230.22% | 0.80% | 8.67% | 15.32% | |
72 Outperform | $13.02B | 23.62 | 3.87% | 1.89% | -0.57% | 8.25% | |
72 Outperform | $10.42B | 23.14 | 24.52% | 0.62% | 11.91% | 28.47% | |
72 Outperform | $12.47B | 3.96 | 110.75% | ― | 0.57% | 440.71% | |
62 Neutral | $12.23B | 14.23 | 159.08% | ― | 5.56% | 45.02% | |
48 Neutral | $6.36B | 1.28 | -45.04% | 2.64% | 19.24% | 1.69% |
* Healthcare Sector Average
Performance Comparison
FMS
Fresenius Medical Care
23.82
5.26
28.34%
DVA
DaVita
153.36
21.96
16.71%
HCA
HCA Healthcare
334.99
10.34
3.18%
EHC
Encompass Health
102.13
21.04
25.95%
THC
Tenet Healthcare
127.52
25.70
25.24%
UHS
Universal Health
178.24
10.52
6.27%
Fresenius Medical Care Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 2.19% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful cost-saving initiatives, and positive developments in Care Enablement. However, challenges such as elevated mortality rates and lower than expected volume growth in the U.S. dialysis business were noted. The strategic initiatives and innovation efforts like the FDA approval for the 5008X machine position the company for future growth.Highlights
Strong Financial Performance
Achieved 18% operating income growth at the upper end of earnings outlook for 2024, along with a 4% organic growth.
FME25 Transformation Program Success
Increased the total savings target from EUR650 million to EUR750 million by the end of 2025, exceeding the initial expectations.
Positive Developments in Care Enablement
Care Enablement improved its full-year margin to 6.1%, nearly tripling from the prior year, driven by volume growth and cost efficiencies.
Dividend Increase
Planning to propose a 21% increase in dividend, reflecting a strong financial policy and healthy cash flow.
FDA Approval and Innovation
Received FDA approval for the high-volume Hemodiafiltration-capable 5008X machine, with first treatments already conducted.
Lowlights
Elevated Mortality Rates
Continued to experience elevated mortality in the United States, impacting treatment volumes.
Challenges in U.S. Dialysis Business
Lower than expected volume growth in the U.S. dialysis business over the last two years.
Impact of Value-Based Care Business
The value-based care business realized a slightly negative contribution to operating income in 2024, with expectations to remain slightly negative to breakeven in 2025.
Company Guidance
During the Fresenius Medical Care's fourth quarter 2024 earnings call, CEO Helen Giza and CFO Martin Fischer highlighted the company's robust financial performance and strategic advancements. The company reported a Net Promoter Score of 72, reflecting strong patient satisfaction. Financially, Fresenius achieved 4% organic revenue growth and operating income margin improvements, with Care Delivery surpassing a 10% margin and Care Enablement reaching a 6.1% margin. The FME25 program exceeded its initial savings target, now aiming for €750 million by 2025. The value-based care business contributed €1.8 billion in revenue, with plans to reach €1.9 billion by 2025. Despite challenges like elevated mortality and lower-than-expected U.S. dialysis volume growth, the company maintained a positive outlook, projecting high teens to high 20s percent operating income growth for 2025. The strategic divestiture plan continued, with €750 million in cash proceeds realized by the end of 2024. The call also addressed the rollout of the 5008X Hemodiafiltration machine, anticipated to enhance U.S. market operations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.