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Fresenius Medical Care Corp. (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
Rating:66Neutral
Price Target:
$28.00
▲(11.64% Upside)
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.64B
Dividend Yield3.14%
Average Volume (3M)282.44K
Price to Earnings (P/E)20.4
Beta (1Y)0.55
Revenue Growth1.11%
EPS Growth25.84%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength50
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.53
Shares Outstanding586,826,900
10 Day Avg. Volume350,805
30 Day Avg. Volume282,443
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.98
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit6.01
Enterprise Value/Ebitda10.76
Forecast
1Y Price Target
$30.50Price Target Upside21.61% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 the sale of dialysis products and the provision of dialysis services. The company's revenue model is built on two key streams: the sale of medical equipment, such as dialysis machines and consumables (dialyzers, fluids, etc.), and the operation of outpatient dialysis clinics, where they provide treatment to patients. Additionally, Fresenius Medical Care earns income from long-term contracts with healthcare providers and government entities, which often include reimbursement for dialysis treatments. The company also benefits from strategic partnerships with healthcare organizations that enhance its service offerings and market reach, contributing to consistent revenue growth.
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 0.56%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call conveyed a positive outlook with strong revenue and operating income growth, improved cash flow, and strategic initiatives like share buybacks. However, concerns over patient outflows due to a severe flu season, elevated mortality rates, and challenges in U.S. volume growth tempered the overall sentiment.Q2-2025 Updates
Positive Updates
Strong Organic Revenue Growth
Fresenius Medical Care delivered a robust organic revenue growth of 7% with positive contributions from all three operating segments in the second quarter of 2025.
Significant Operating Income Growth
The company achieved a 13% increase in operating income, indicating strong margin expansion and effective cost management strategies.
Improved Cash Flow and Leverage
Operating cash flow increased by 75%, and the net leverage ratio improved to 2.7x, well within the target range of 2.5x to 3x.
Share Buyback Program Announcement
A EUR 1 billion share buyback program was announced, demonstrating confidence in future growth and commitment to shareholder returns.
Care Enablement Margin Progression
Care Enablement segment showed a significant 79% increase in operating income, advancing within the 2025 target margin band to 8.7%.
Value-Based Care Revenue Growth
Value-Based Care segment realized strong organic revenue growth of 28%, driven by expanded contracting and increased member months.
Negative Updates
Higher-Than-Expected Patient Outflow
In the U.S., stable volume development was negatively impacted by higher-than-expected patient outflows, attributed to a severe flu season.
Elevated Mortality Rates
The severe flu season resulted in significantly increased mortality, affecting patient volumes and growth assumptions in the U.S.
Value-Based Care Operating Income Loss
Despite strong revenue growth, the Value-Based Care segment incurred a loss of EUR 9 million due to unfavorable savings rate and inflation.
U.S. Volume Growth Challenges
Assumptions for same market treatment growth in the U.S. had to be revised to flat to slightly positive for 2025.
Adverse Foreign Exchange Impact
Foreign exchange rate developments had a negative impact on operating income, with a EUR 16 million unfavorable effect.
Company Guidance
In the second quarter of 2025, Fresenius Medical Care reported an organic revenue growth of 7%, with contributions from all three operating segments. The FME25+ transformation program delivered EUR 58 million in sustainable savings towards a target of EUR 180 million for the year, and operating income grew by 13%, enhancing margin expansion. Operating cash flow saw a significant increase of 75%, while the net leverage ratio improved to 2.7x, aligning with the target range of 2.5x to 3x. The company confirmed its full-year 2025 outlook, despite anticipating flat to slightly positive same market treatment growth in the U.S. due to higher-than-expected patient outflow from a severe flu season. A share buyback program of EUR 1 billion was announced, with the first tranche planned for August, as part of a strategy to boost shareholder returns.Fresenius Medical Care Financial Statement Overview
Summary
Fresenius Medical Care shows stable financial health with consistent revenue and robust operating cash flow. Improvements in EBIT and return on equity are positive, but reliance on debt and moderate net profitability are concerns.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 | 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 | 4.82B | 4.76B | 4.93B | 5.31B | 5.08B | 5.54B |
| EBITDA | 2.69B | 3.21B | 3.21B | 1.58B | 3.55B | 4.13B |
| 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 | 1.34B | 1.56B | 1.46B | 1.64B | 1.26B |
| Total Debt | 11.02B | 11.00B | 12.08B | 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 | 13.99B | 12.70B | 11.22B |
Cash Flow | ||||||
| Free Cash Flow | 2.33B | 1.69B | 1.94B | 756.00M | 806.00M | 2.15B |
| Operating Cash Flow | 2.75B | 2.39B | 2.63B | 2.17B | 2.49B | 4.23B |
| Investing Cash Flow | 349.96M | -84.94M | -544.23M | -734.73M | -1.20B | -1.33B |
| Financing Cash Flow | -59.56M | -2.57B | -1.86B | -1.62B | -1.02B | -2.66B |
Fresenius Medical Care Technical Analysis
Neutral
25.08
Price Trends
26.81
Negative
26.30
Negative
24.46
Positive
Market Momentum
-0.68
Negative
44.35
Neutral
86.87
Negative
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 25.08 is below the 20-day moving average (MA) of 25.28, below the 50-day MA of 26.81, and above the 200-day MA of 24.46, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 86.87 is Negative, 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 2 New Risks
1.
We need to develop new internal functions to perform certain business services that Fresenius SE provided to us prior to the Conversion. Q4, 2023
2.
As a company with operations spanning 150 countries, we face specific risks from our global operations. Q4, 2023
Fresenius Medical Care Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.36B | 9.40 | 18.66% | 0.45% | 9.61% | 39.65% | |
73 Outperform | $12.13B | 23.54 | 25.35% | 0.56% | 11.80% | 30.02% | |
70 Outperform | $92.61B | 16.63 | -230.22% | 0.70% | 6.37% | 11.25% | |
70 Outperform | $15.20B | 11.01 | 41.09% | ― | -1.09% | -43.10% | |
66 Neutral | $14.64B | 20.44 | 4.72% | 3.14% | 1.11% | 25.84% | |
61 Neutral | $9.68B | 13.30 | 635.30% | ― | 5.09% | 7.85% | |
51 Neutral | $7.70B | -0.29 | -46.01% | 2.24% | 23.07% | -0.65% |
* Healthcare Sector Average
Performance Comparison
FMS
Fresenius Medical Care
25.08
6.35
33.90%
DVA
DaVita
135.38
-16.79
-11.03%
HCA
HCA Healthcare
395.79
24.56
6.62%
EHC
Encompass Health
120.38
32.37
36.78%
THC
Tenet Healthcare
172.02
15.84
10.14%
UHS
Universal Health
178.47
-48.13
-21.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.