Fresenius Medical Care Corp. (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
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Rating:60Neutral
Price Target:
$24.50
▲(4.57% Upside)
Action:ReiteratedDate:02/27/26
The score reflects moderate fundamentals with improving profitability and a stable balance sheet but weakening growth/cash-flow trends, a cautious 2026 outlook with meaningful headwinds despite strong execution initiatives, and a supportive valuation (modest P/E and solid dividend) alongside neutral-to-soft technical momentum.
Positive Factors
Scale & Market Position
Fresenius Medical Care's vast clinic footprint and ~292k patient base create durable revenue visibility via recurring, reimbursement-backed treatments. Scale yields negotiating leverage, standardized clinical protocols, and cross-selling of devices/consumables, supporting stable long-term cash flows.
Negative Factors
Weakening Revenue & Cash-Flow Trends
A notable TTM revenue decline and sharply negative FCF growth signal weakening demand and lower cash resiliency. Even with positive absolute cash flow, deteriorating growth and reduced coverage ratios limit capacity to fund rollouts, absorb shocks, or accelerate deleveraging sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Market Position
Fresenius Medical Care's vast clinic footprint and ~292k patient base create durable revenue visibility via recurring, reimbursement-backed treatments. Scale yields negotiating leverage, standardized clinical protocols, and cross-selling of devices/consumables, supporting stable long-term cash flows.
Read all positive factors
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.60B
Dividend Yield3.29%
Average Volume (3M)515.20K
Price to Earnings (P/E)12.1
Beta (1Y)0.51
Revenue Growth4.09%
EPS Growth13.17%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.85
Shares Outstanding586,826,900
10 Day Avg. Volume331,919
30 Day Avg. Volume515,200
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.83
Price to Sales (P/S)0.60
P/FCF Ratio6.96
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda6.32
Forecast
1Y Price Target
$26.00Price Target Upside10.97% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.38
Revenue Forecast (FY)$22.64B
Fresenius Medical Care Business Overview & Revenue Model
Company Description
Fresenius 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 outpati...
How the Company Makes Money
Fresenius Medical Care generates revenue primarily through two key segments: the production of dialysis products and the operation of dialysis clinics. In the products segment, the company sells dialysis machines, consumables, and other related me...
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlights a strong 2025 performance with significant margin expansion, robust cash generation, successful execution of transformation programs (FME25+) and a Value-Based Care turnaround. These positives are tempered by notable near-term headwinds and one-time contributions (TDAPA and binders) that raise the 2026 comparable base, China regulatory pressures, flat U.S. treatment volumes and transitional costs from the large-scale 5008X rollout and IT investments. Overall, the company presents a credible long-term growth and margin path while acknowledging a transitional 2026.Positive Updates
Strong full-year profitability and margin expansion
2025 operating income grew 27% and the group delivered a 2025 group margin of 11.3%; Q4 margin jumped to 13.9% (a 430 basis point YoY improvement), driven by contributions across all three segments.
Negative Updates
Revenue/earnings pressure from regulatory and volume headwinds
2026 outlook assumes broadly flat revenue and operating income roughly flat (mid-single-digit % range) versus a high 2025 base; company expects regulatory impacts of EUR 150–200 million in 2026 (including phasing out of TDAPA benefits and ACA subsidy expiry effects).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong full-year profitability and margin expansion
2025 operating income grew 27% and the group delivered a 2025 group margin of 11.3%; Q4 margin jumped to 13.9% (a 430 basis point YoY improvement), driven by contributions across all three segments.
Read all positive updates
Company Guidance
Management guided to 2026 that group revenue should be broadly flat with operating income roughly flat (mid‑single‑digit percent upside/downside) and a group margin range of 10.5%–12%, noting stronger H1 before TDAPA benefits phase out in H2; assumptions include flat U.S. same‑market treatment growth in 2026 (with a return to >2% as mortality normalizes), a large‑scale 5008X rollout replacing ~20% of the installed base (training >7,200 nurses/technicians and transitioning ~36,000 patients across 28 states) that will create an OpEx rollout headwind and ~‑€100m higher intersegment eliminations, Value‑Based Care revenue reduction of ~€300m (no expected earnings hit), business growth of €250–350m, incremental FME25+ savings of €250m with related one‑time costs of €350m, inflationary pressure of €200–300m (including ~3% net labor), regulatory headwinds of €150–200m (including TDAPA/phosphate binder effects), portfolio optimization dragging ~30 bps, corporate costs of €200–220m, net financial result of −€340–360m, an effective tax rate of 22–24%, and an FX assumption of $1.18/€; medium‑term targets reiterated were operating income CAGR 3%–7% through 2028 (implied low‑teens CAGR excluding TDAPA noise), FME25+ cumulative savings target of €1.2bn by end‑2027 (€804m realized to date, €238m incremental in 2025), and 2030 aspirations of lower‑to‑mid single‑digit revenue CAGR for Care Delivery, mid single‑digit for Care Enablement, mid‑teens group margin and a low single‑digit OI margin for Value‑Based Care.Fresenius Medical Care Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
61
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.63B | 19.34B | 19.45B | 19.40B | 17.62B |
| Gross Profit | 5.03B | 4.76B | 4.93B | 4.89B | 4.77B |
| EBITDA | 2.96B | 3.21B | 3.21B | 3.42B | 3.55B |
| Net Income | 978.00M | 537.91M | 499.00M | 673.40M | 969.31M |
Balance Sheet | |||||
| Total Assets | 31.00B | 33.57B | 33.93B | 35.75B | 34.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.34B | 1.56B | 1.46B | 1.64B |
| Total Debt | 10.79B | 11.00B | 12.08B | 13.21B | 13.32B |
| Total Liabilities | 16.72B | 17.80B | 19.10B | 20.30B | 20.39B |
| Stockholders Equity | 14.28B | 14.58B | 13.62B | 13.99B | 12.70B |
Cash Flow | |||||
| Free Cash Flow | 1.70B | 1.69B | 1.94B | 1.44B | 1.64B |
| Operating Cash Flow | 2.58B | 2.39B | 2.63B | 2.17B | 2.49B |
| Investing Cash Flow | -666.18M | -84.94M | -544.23M | -734.73M | -1.20B |
| Financing Cash Flow | -1.38B | -2.57B | -1.86B | -1.62B | -1.02B |
Fresenius Medical Care Technical Analysis
Positive
23.43
Price Trends
23.11
Positive
23.15
Positive
24.58
Negative
Market Momentum
<0.01
Negative
62.12
Neutral
91.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Positive. The current price of 23.43 is above the 20-day moving average (MA) of 22.52, above the 50-day MA of 23.11, and below the 200-day MA of 24.58, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 91.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.71B | 29.02 | 16.58% | 0.14% | 18.61% | 35.76% | |
70 Outperform | $11.47B | 9.31 | 21.03% | 0.35% | 10.21% | 39.58% | |
70 Outperform | $10.77B | 18.84 | 24.48% | 0.65% | 11.13% | 27.53% | |
63 Neutral | $10.07B | 10.44 | -160.63% | ― | 5.14% | 4.37% | |
62 Neutral | $17.56B | 12.83 | 34.82% | ― | -0.56% | -53.50% | |
60 Neutral | $13.60B | 12.07 | 7.13% | 3.29% | 4.09% | 13.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
FMS
Fresenius Medical Care
23.61
0.24
1.03%
DVA
DaVita
150.68
-2.68
-1.75%
EHC
Encompass Health
108.33
6.88
6.78%
THC
Tenet Healthcare
201.87
74.35
58.30%
ENSG
The Ensign Group
201.56
74.06
58.08%
UHS
Universal Health
187.88
10.34
5.83%
Fresenius Medical Care Corporate Events
Fresenius Medical Care Files 2025 Form 20-F with U.S. SEC
Feb 24, 2026
Fresenius Medical Care, the world’s leading provider of dialysis products and services, operates 3,601 clinics treating roughly 292,000 renal patients and manufactures core dialysis equipment such as machines and dialyzers. The company is li...
Fresenius Medical Care Posts Strong 2025 Profit Jump and Sets Next Phase of Transformation
Feb 24, 2026
On February 24, 2026, Fresenius Medical Care reported that 2025 was a “milestone year,” with organic revenue up 8% at constant currency, operating income rising 27% on an adjusted basis, and operating margin stepping up to 11.3%, at th...
Fresenius Medical Care Accelerates Second Tranche of €1 Billion Share Buyback
Jan 12, 2026
On January 9, 2026, Fresenius Medical Care AG announced it will continue its EUR 1 billion share buyback program, originally unveiled in June 2025, by launching a second tranche after completing the first tranche ahead of schedule on December 29, ...
Fresenius Medical Care Appoints New Global Chief Medical Officer
Dec 10, 2025
Fresenius Medical Care announced the appointment of Charles Hugh-Jones as the new Global Chief Medical Officer, effective January 1, 2026, succeeding Franklin W. Maddux who will retire by the end of the year. This transition is part of a strategic...
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.