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Fresenius Medical Care Corp. (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
Rating:77Outperform
Price Target:
$32.00
▲(16.32%Upside)
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.51B
Dividend Yield2.8%
Average Volume (3M)401.31K
Price to Earnings (P/E)24.6
Beta (1Y)0.59
Revenue Growth-0.91%
EPS Growth27.17%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength39
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.48
Shares Outstanding586,826,900
10 Day Avg. Volume372,241
30 Day Avg. Volume401,305
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.29
Price to Sales (P/S)0.00
P/FCF Ratio5.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.60Price Target Upside33.04% Upside
Rating ConsensusHold
Number of Analyst Covering4
Fresenius Medical Care Business Overview & Revenue Model
Company DescriptionFresenius Medical Care (FMS) is a leading global provider of products and services for individuals with chronic kidney failure. Operating in the healthcare sector, the company specializes in offering dialysis treatment, which is critical for patients whose kidneys are no longer able to function effectively. Fresenius Medical Care is involved in both the manufacturing of dialysis products and the provision of dialysis treatment services, operating a network of clinics worldwide to deliver comprehensive care for patients.
How the Company Makes MoneyFresenius Medical Care generates revenue primarily through its two main business segments: products and services. The services segment, which accounts for the majority of its income, involves operating dialysis clinics where patients receive regular treatment. These clinics generate revenue through reimbursements from healthcare payers, including government healthcare programs and private insurance companies. The products segment contributes to revenue by manufacturing and selling dialysis equipment and related disposables, such as dialysis machines, dialyzers, and other consumables, to healthcare providers and clinics globally. Strategic partnerships and contracts with governments and health organizations further enhance the company's revenue streams by ensuring steady demand and access to new markets.
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 9.43%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong organic revenue growth, operational income growth, and improved margins, particularly in the Care Enablement segment. However, challenges such as the severe flu season, one less dialysis day, and portfolio optimization impacts were noted. Despite these challenges, the company remains confident in its full-year 2025 outlook.Q1-2025 Updates
Positive Updates
Strong Organic Revenue Growth
The company reported strong organic revenue growth of 5% in Q1 2025, with positive contributions from both Care Delivery and Care Enablement segments.
Operational Income Growth and Savings
Achieved 11% operating income growth, consistent with the expected phasing of the full-year outlook. Delivered €68 million in additional sustainable savings as part of the FME25 transformation program.
Improved Net Leverage Ratio
The net leverage ratio improved to 2.8 times, which is well below the self-imposed target range of 3 to 3.5 times, thanks to robust cash flow development and strict financial discipline.
Care Enablement Margin Improvement
The Care Enablement segment margin improved to 8.3%, entering its target margin band of 8% to 12% for the first time, driven by solid volume growth and positive pricing momentum.
Positive Outlook for 2025
The company confirmed its full-year outlook for 2025, expecting operating income to grow by a high teens to high 20s percent rate compared to the prior year.
Negative Updates
Impact of Severe Flu Season
The severe flu season resulted in a 40 basis point impact on missed treatments in the U.S., affecting same market treatment growth.
Headwinds from One Less Dialysis Day
The first quarter faced a headwind for absolute volume development and utilization due to one fewer dialysis day.
Portfolio Optimization Impact
Divestitures as part of the portfolio optimization plan negatively impacted revenue development by 260 basis points.
Special Items Affecting Operating Income
Special items negatively affected group operating income by €126 million, including costs related to portfolio optimization and the FME25 transformation program.
Company Guidance
During the first quarter of 2025, Fresenius Medical Care reported several key performance metrics, indicating a strong start to the year and alignment with their strategic plan. The company achieved 5% organic revenue growth, with significant contributions from both Care Delivery and Care Enablement segments. The FME25 transformation program continued to yield results, delivering €68 million in additional sustainable savings towards the targeted €180 million for the year. Operating income grew by 11%, consistent with the company's full-year outlook, and the net leverage ratio improved to 2.8 times. Despite challenges such as a severe flu season, the company maintained stable same market treatment growth in the U.S. and strong same market treatment growth of 2.5% in international markets. The Care Enablement margin improved to 8.3%, entering its target margin band of 8% to 12%. The company confirmed its full-year outlook, expecting positive to low single-digit revenue growth and operating income growth in the high teens to high 20s percent range.Fresenius Medical Care Financial Statement Overview
Summary
Fresenius Medical Care maintains stable financial health with consistent revenue and robust operating cash flow. The company shows improvements in EBIT and return on equity, though reliance on debt and moderate net profitability remain 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 | 19.49B | 19.34B | 19.45B | 19.40B | 17.62B | 17.86B |
| Gross Profit | 4.77B | 4.76B | 4.93B | 5.31B | 5.08B | 5.54B |
| EBITDA | 2.60B | 3.21B | 3.21B | 1.58B | 3.55B | 4.13B |
| Net Income | 618.16M | 537.91M | 499.00M | 673.40M | 969.31M | 1.16B |
Balance Sheet | ||||||
| Total Assets | 32.74B | 33.57B | 33.93B | 35.75B | 34.37B | 31.69B |
| Cash, Cash Equivalents and Short-Term Investments | 1.49B | 1.45B | 1.54B | 1.44B | 1.62B | 1.24B |
| Total Debt | 10.82B | 10.98B | 12.05B | 13.21B | 13.32B | 12.38B |
| Total Liabilities | 17.23B | 17.80B | 19.10B | 20.30B | 20.39B | 19.36B |
| Stockholders Equity | 14.37B | 14.58B | 13.62B | 15.45B | 13.98B | 12.33B |
Cash Flow | ||||||
| Free Cash Flow | 1.98B | 1.69B | 1.94B | 756.00M | 806.00M | 2.15B |
| Operating Cash Flow | 2.42B | 2.39B | 2.63B | 2.17B | 2.49B | 4.23B |
| Investing Cash Flow | 186.01M | -84.94M | -544.23M | -734.73M | -1.20B | -1.33B |
| Financing Cash Flow | -976.16M | -2.57B | -1.86B | -1.62B | -1.02B | -2.66B |
Fresenius Medical Care Technical Analysis
Neutral
27.51
Price Trends
27.70
Negative
25.62
Positive
23.68
Positive
Market Momentum
0.07
Positive
45.04
Neutral
35.36
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 27.51 is below the 20-day moving average (MA) of 28.04, below the 50-day MA of 27.70, and above the 200-day MA of 23.68, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 35.36 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 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.69B | 10.19 | 18.35% | 0.44% | 9.73% | 51.87% | |
77 Outperform | $16.51B | 24.63 | 4.36% | 2.80% | -0.91% | 27.17% | |
76 Outperform | $91.17B | 16.84 | -230.22% | 0.76% | 7.30% | 11.60% | |
75 Outperform | $12.03B | 24.65 | 25.33% | 0.57% | 11.21% | 30.38% | |
71 Outperform | $16.08B | 11.40 | 38.12% | ― | -1.79% | -41.85% | |
66 Neutral | $10.78B | 14.14 | 260.92% | ― | 5.11% | 14.28% | |
52 Neutral | $7.45B | 0.27 | -61.87% | 2.30% | 16.62% | 1.04% |
* Healthcare Sector Average
Performance Comparison
FMS
Fresenius Medical Care
27.51
8.50
44.71%
DVA
DaVita
143.80
5.88
4.26%
HCA
HCA Healthcare
377.60
63.21
20.11%
EHC
Encompass Health
118.13
34.72
41.63%
THC
Tenet Healthcare
172.39
41.42
31.63%
UHS
Universal Health
182.25
2.03
1.13%
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.