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Fresenius Medical Care Corp. (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
Rating:71Outperform
Price Target:
$27.00
▲(9.00% Upside)
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.43B
Dividend Yield3.18%
Average Volume (3M)313.81K
Price to Earnings (P/E)20.2
Beta (1Y)0.53
Revenue Growth1.11%
EPS Growth25.84%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength52
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.53
Shares Outstanding586,826,900
10 Day Avg. Volume279,410
30 Day Avg. Volume313,805
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 Cap2.00
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit6.01
Enterprise Value/Ebitda10.76
Forecast
1Y Price Target
$30.25Price Target Upside22.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Fresenius Medical Care Business Overview & Revenue Model
Company DescriptionFresenius Medical Care (FMS) is a global healthcare company specializing in providing products and services for individuals with renal diseases. The company operates in two main segments: the production of dialysis products and the provision of dialysis services. Its core offerings include dialysis machines, dialysis consumables, and various related services, making it a leading provider in the renal care market. With a strong presence in both the manufacturing and treatment sectors, Fresenius Medical Care is committed to improving the quality of life for patients with kidney failure worldwide.
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: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong organic revenue and operating income growth, a significant increase in operating cash flow, and the announcement of a share buyback program highlighting positive aspects. However, these were counterbalanced by challenges such as the impact of a severe flu season, increased labor costs, and foreign exchange rate headwinds.Q2-2025 Updates
Positive Updates
Strong Organic Revenue Growth
The company delivered strong organic revenue growth of 7% with positive contributions from all three operating segments.
Significant Operating Income Growth
Operating income grew by 13%, driven by growth in Care Enablement, leading to a margin expansion to 9.9%.
Improved Operating Cash Flow
Operating cash flow increased by 75%, reflecting recovery from previous headwinds and favorable working capital development.
Share Buyback Program Announcement
The company announced a EUR 1 billion share buyback program to be executed in multiple tranches, starting with the first tranche in August.
Value-Based Care Revenue Growth
Value-Based Care segment realized strong organic revenue growth of 28%, driven by expanded contracting and increased member months.
Care Enablement Margin Progression
Care Enablement segment showed a significant 79% increase in operating income, leading to a margin increase to 8.7%.
Negative Updates
Impact of Severe Flu Season
The U.S. volume development was negatively impacted by a severe flu season, resulting in higher-than-expected patient outflow due to increased mortality and missed treatments.
Higher Labor Costs
Care Delivery faced higher labor costs impacted by increasing medical benefit expenses for U.S. employees.
Volume-Based Procurement in China
Care Enablement faced challenges due to volume-based procurement in China, affecting revenue development.
Negative Impact from Foreign Exchange Rates
Foreign exchange rates development had a negative impact of EUR 16 million on the overall financial performance.
Special Items Affecting Operating Income
Special items negatively affected group operating income by EUR 51 million, due to costs relating to FME25+ and portfolio optimization.
Company Guidance
During the second quarter of 2025 earnings call, Fresenius Medical Care provided robust guidance, highlighting several key metrics. The company reported a 7% organic revenue growth, with contributions from all three operating segments. The FME25+ transformation program continued to deliver, achieving EUR 58 million in sustainable savings towards a yearly target of EUR 180 million. Operating income grew by 13%, contributing to a margin expansion of 9.9%. Operating cash flow increased by 75%, and the net leverage ratio improved to 2.7x, within the target range of 2.5x to 3x. Fresenius confirmed its full-year outlook, expecting revenue growth at the upper end of the positive to low single-digit percentage range and an operating income growth rate of high teens to high 20s percent. The company announced a EUR 1 billion share buyback program, to be executed in multiple tranches, starting in August. Additionally, Value-Based Care saw a 28% revenue growth due to expanded contracting, while Care Enablement achieved a margin increase to 8.7%, supported by volume and price increases.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
Negative
24.77
Price Trends
25.97
Negative
26.47
Negative
24.79
Negative
Market Momentum
-0.28
Negative
45.24
Neutral
17.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Negative. The current price of 24.77 is below the 20-day moving average (MA) of 24.88, below the 50-day MA of 25.97, and below the 200-day MA of 24.79, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 17.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.10B | 10.01 | 18.66% | 0.42% | 9.61% | 39.65% | |
76 Outperform | $10.04B | 31.41 | 17.57% | 0.14% | 17.71% | 41.83% | |
75 Outperform | $17.33B | 12.56 | 41.09% | ― | -1.09% | -43.10% | |
73 Outperform | $12.65B | 24.55 | 25.35% | 0.54% | 11.80% | 30.02% | |
71 Outperform | $14.43B | 20.18 | 4.72% | 3.18% | 1.11% | 25.84% | |
62 Neutral | $9.86B | 13.55 | 635.30% | ― | 5.09% | 7.85% | |
51 Neutral | $7.95B | -0.40 | -42.50% | 2.21% | 22.29% | -1.85% |
* Healthcare Sector Average
Performance Comparison
FMS
Fresenius Medical Care
24.77
5.25
26.90%
DVA
DaVita
137.87
-12.37
-8.23%
EHC
Encompass Health
125.58
34.82
38.36%
THC
Tenet Healthcare
196.18
42.96
28.04%
ENSG
The Ensign Group
173.99
22.67
14.98%
UHS
Universal Health
190.12
-35.42
-15.70%
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.