Fresenius Medical Care (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
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Rating:60Neutral
Price Target:
$23.00
▼(-1.75% Downside)
Action:Reiterated
Date:05/09/26
The score reflects solid financial resilience driven by strong free cash flow and improving profitability, balanced against limited top-line momentum and thin net margins. Near-term outlook from the earnings call points to a transitional 2026 with meaningful regulatory and cost headwinds, while technicals remain weak with the stock trading below major moving averages. Dividend yield provides some support, but valuation is not especially compelling given the growth profile.
Positive Factors
Strong cash generation
Consistent, sizable operating and free cash flow provides durable financial flexibility to fund capital expenditures, buybacks, dividends and transformation programs. Reliable cash conversion cushions reimbursement volatility and supports deleveraging and strategic investments over the next 2–6 months.
Negative Factors
Regulatory/reimbursement phase-outs
Phasing out TDAPA benefits and similar temporary reimbursement items materially reduces near-term revenue comparables and compresses margins. Because a significant portion of revenue relies on public payors, these structural reimbursement shifts will weigh on earnings visibility and limit upside over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating and free cash flow provides durable financial flexibility to fund capital expenditures, buybacks, dividends and transformation programs. Reliable cash conversion cushions reimbursement volatility and supports deleveraging and strategic investments over the next 2–6 months.
Read all positive factors
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.01B
Dividend Yield3.29%
Average Volume (3M)760.53K
Price to Earnings (P/E)22.9
Beta (1Y)0.52
Revenue Growth7.24%
EPS Growth67.43%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.65
Shares Outstanding586,826,900
10 Day Avg. Volume981,667
30 Day Avg. Volume760,533
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 Cap1.55
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit4.02
Enterprise Value/Ebitda6.08
Forecast
1Y Price Target
$26.00Price Target Upside11.06% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.33
Revenue Forecast (FY)$22.67B
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
FMS primarily makes money through (1) delivering dialysis treatments and related patient care services and (2) selling dialysis products and associated services.
1) Dialysis and care services (treatment revenue)
- Reimbursement for dialysis sessi...
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 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
58
Neutral
Balance Sheet
62
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.36B | 19.63B | 19.34B | 19.45B | 19.40B | 17.62B |
| Gross Profit | 5.03B | 5.03B | 4.76B | 4.93B | 4.89B | 4.77B |
| EBITDA | 3.32B | 2.96B | 3.21B | 3.21B | 3.42B | 3.55B |
| Net Income | 944.60M | 978.00M | 537.91M | 499.00M | 673.40M | 969.31M |
Balance Sheet | ||||||
| Total Assets | 31.47B | 31.00B | 33.57B | 33.93B | 35.75B | 34.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.60B | 1.34B | 1.56B | 1.46B | 1.64B |
| Total Debt | 11.03B | 10.79B | 11.00B | 12.08B | 13.21B | 13.32B |
| Total Liabilities | 17.26B | 16.72B | 17.80B | 19.10B | 20.30B | 20.39B |
| Stockholders Equity | 13.24B | 14.28B | 14.58B | 13.62B | 13.99B | 12.70B |
Cash Flow | ||||||
| Free Cash Flow | 1.77B | 1.70B | 1.69B | 1.94B | 1.44B | 1.64B |
| Operating Cash Flow | 2.72B | 2.58B | 2.39B | 2.63B | 2.17B | 2.49B |
| Investing Cash Flow | -761.85M | -666.18M | -84.94M | -544.23M | -734.73M | -1.20B |
| Financing Cash Flow | -1.71B | -1.38B | -2.57B | -1.86B | -1.62B | -1.02B |
Fresenius Medical Care Technical Analysis
Neutral
23.41
Price Trends
22.44
Negative
22.83
Negative
23.90
Negative
Market Momentum
-0.20
Negative
50.33
Neutral
88.31
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 23.41 is above the 20-day moving average (MA) of 22.02, above the 50-day MA of 22.44, and below the 200-day MA of 23.90, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 88.31 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.51B | 12.33 | 25.35% | 0.65% | 10.05% | 23.59% | |
69 Neutral | $10.42B | 29.20 | 16.63% | 0.14% | 19.23% | 15.67% | |
68 Neutral | $12.64B | 13.11 | -133.12% | ― | 6.68% | 2.79% | |
67 Neutral | $16.14B | 5.83 | 40.55% | ― | 4.56% | 27.14% | |
64 Neutral | $9.95B | 7.84 | 20.93% | 0.35% | 10.42% | 33.92% | |
60 Neutral | $13.01B | 22.85 | 7.16% | 3.29% | 7.24% | 67.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
FMS
Fresenius Medical Care
22.20
-7.04
-24.08%
DVA
DaVita
196.87
56.02
39.77%
EHC
Encompass Health
105.99
-13.07
-10.97%
THC
Tenet Healthcare
187.41
24.58
15.10%
ENSG
The Ensign Group
178.26
32.41
22.22%
UHS
Universal Health
164.32
-25.08
-13.24%
Fresenius Medical Care Corporate Events
Fresenius Medical Care Files Q1 2026 Interim Report and Affirms Internal Control Compliance
May 5, 2026
Fresenius Medical Care filed a Form 6-K in May 2026 providing an interim report on its financial condition and results of operations for the three months ended March 31, 2026 and 2025. The filing outlines segment structures, reporting practices, a...
Fresenius Medical Care Posts Strong Q1 2026 Operating Gains Amid Costly U.S. Clinic Restructuring
May 5, 2026
On May 5, 2026, Fresenius Medical Care reported first-quarter 2026 results showing 4% organic revenue growth at constant currency and a 10% rise in adjusted operating income, expanding its adjusted margin to 10.1%. The company highlighted strong p...
Fresenius Medical Care Sets May 21, 2026 AGM With Dividend and New Buyback Mandate on Agenda
Apr 14, 2026
On April 14, 2026, Fresenius Medical Care AG filed a Form 6-K outlining documents for its Annual General Meeting, to be held in person on May 21, 2026 in Frankfurt. The filing includes English translations of key reports for fiscal 2025, such as t...
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...
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.