Fresenius Medical Care (FMS) AI Stock Analysis

• Market Cap: $15.22B
• Dividend Yield: 0.11%
• Average Volume (3M): 296.18K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.55
• Revenue Growth: -0.91%
• EPS Growth: 27.17%
• Country: US
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): 0.48
• Shares Outstanding: 586,826,900
• 10 Day Avg. Volume: 218,514
• 30 Day Avg. Volume: 296,176
• PEG Ratio: 1.45
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.46
• Price Target Upside: 41.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $28.00 ▲(8.40%Upside)

Fresenius Medical Care's overall stock score is driven primarily by its stable financial performance and positive earnings call highlights, although technical indicators show bearish momentum. The strong dividend yield is a positive aspect, but potential risks due to high yield and market challenges are notable. Investors should consider the technical weakness alongside the company's operational improvements and positive outlook.

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 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 Money

Fresenius 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 25.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 25.83 is below the 20-day moving average (MA) of 27.39, below the 50-day MA of 27.94, and above the 200-day MA of 24.10, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 53.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMS.

Fresenius Medical Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	73 Outperform	$9.98B	8.16	18.66%	0.52%	9.61%	39.65%
DVA	70 Outperform	$10.97B	14.38	260.92%	―	5.11%	14.28%
HCA	69 Neutral	$80.43B	14.04	-230.22%	0.81%	6.37%	―
THC	67 Neutral	$14.21B	9.79	41.09%	―	-1.09%	-43.10%
FMS	66 Neutral	$15.22B	22.76	4.36%	0.11%	-0.91%	27.17%
EHC	65 Neutral	$10.85B	22.23	25.33%	0.63%	11.21%	30.38%
Sector *	65 Neutral	¥355.15B	11.37	-2.99%	2.48%	11.78%	-10.17%