Fresenius SE & Co (FSNUY) AI Stock Analysis

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Fresenius SE & Co

(OTC:FSNUY)

Rating:73Outperform

Price Target:

$13.50

▲(10.84%Upside)

Fresenius SE & Co's overall stock score is driven by strong earnings call performance and robust technical indicators. Financial performance is stable but needs improvement in profitability margins and revenue growth. The high valuation and absence of a dividend yield pose risks. Strategic initiatives are in place to address key challenges and enhance long-term growth.

Fresenius SE & Co (FSNUY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.02B

Dividend Yield2.26%

Average Volume (3M)1.88K

Price to Earnings (P/E)60.6

Beta (1Y)0.19

Revenue Growth-19.78%

EPS GrowthN/A

CountryUS

Employees175,202

SectorHealthcare

Sector Strength42

IndustryMedical - Care Facilities

Share Statistics

EPS (TTM)0.25

Shares Outstanding2,252,949,200

10 Day Avg. Volume2,958

30 Day Avg. Volume1,876

Financial Highlights & Ratios

PEG Ratio-5.53

Price to Book (P/B)1.22

Price to Sales (P/S)0.00

P/FCF Ratio14.17

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.13

Price Target Upside16.01% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Fresenius SE & Co Business Overview & Revenue Model

Company DescriptionFresenius SE & Co. KGaA is a global healthcare group headquartered in Bad Homburg, Germany. The company operates in various healthcare sectors, providing products and services for dialysis, hospital management, and healthcare infrastructure. Its core business segments include Fresenius Medical Care, Fresenius Kabi, Fresenius Helios, and Fresenius Vamed. Fresenius Medical Care focuses on providing dialysis products and services, Fresenius Kabi specializes in lifesaving drugs and clinical nutrition, Fresenius Helios operates private hospitals, and Fresenius Vamed provides project management and services for healthcare facilities.

How the Company Makes MoneyFresenius SE & Co. generates revenue through its diversified healthcare operations. The company's primary revenue streams come from Fresenius Medical Care, which provides dialysis services and sells dialysis products to healthcare facilities. Fresenius Kabi contributes to revenue by manufacturing and selling generic drugs, infusion therapies, and clinical nutrition products. Fresenius Helios operates private hospitals predominantly in Europe and earns from patient services and healthcare management. Fresenius Vamed offers project management, consulting, and operational services for healthcare facilities, contributing to the company's earnings. Strategic partnerships, acquisitions, and a focus on expanding its global presence further enhance its financial performance.

Fresenius SE & Co Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 2.35%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong start to 2025 with significant achievements in EPS growth, business momentum in Kabi and Helios, and strategic deleveraging. However, challenges such as the absence of energy relief in Germany, potential U.S. tariff impacts, and market challenges in China were noted.

Q1-2025 Updates

Positive Updates

Strong Start to 2025

Fresenius reported a strong start to 2025 with excellent momentum across its businesses and reconfirmed its full-year guidance.

Double-Digit EPS Growth

The company achieved a double-digit EPS growth, reflecting efforts in turning around the company with a 12% increase in core EPS performance in the first quarter.

Kabi's Strong Performance

Kabi delivered strong top line growth driven by biopharma, with an EBIT margin increase to 16.8% and organic revenue growth of 6%.

Helios' Encouraging Start

Helios had an encouraging start to the year with organic revenue growth of 8% and Helios Spain achieving a 13.1% EBIT margin.

Deleveraging and Balance Sheet Strength

The company reduced its leverage to 3x net debt to EBITDA and aims to further strengthen the balance sheet with proceeds from the divestment of Fresenius Medical Care.

Biopharma Momentum

Biopharma showed significant momentum with 40% organic top line growth and profitability improvements.

Negative Updates

Absence of Energy Relief in Germany

Helios Germany's EBIT margin was impacted by the absence of energy relief, though it improved sequentially.

Impact of U.S. Tariffs

Potential ramifications from recent trade and tariff policies could affect future economic activity, although Fresenius believes it can navigate these challenges.

China Market Challenges

The Keto VVP impact in China is expected to start in the second quarter, with a low to mid-double-digit revenue impact.

Company Guidance

In the Q1 2025 earnings call, Fresenius reported a strong start to the fiscal year, reaffirming its full-year guidance. Key metrics highlighted include a 7% organic top-line growth and 4% EBIT growth at constant currency, alongside a significant 12% increase in EPS due to improved capital deployment and portfolio optimization. Kabi achieved a notable EBIT margin of 16.8%, propelled by its growth vectors, particularly in biopharma, which is nearing its structural EBIT margin range of 16% to 18%. Helios also showed robust performance, with Helios Spain achieving a 13.1% EBIT margin, while Helios Germany continues to focus on process efficiencies. The company has tightened its leverage target to a corridor of 2.5 to 3.0 net debt over EBITDA, ending the first quarter within this range. Additionally, Fresenius highlighted the successful sale of Fresenius Medical Care shares, which contributed to its strategic flexibility and balance sheet strength.

Fresenius SE & Co Financial Statement Overview

Summary

Fresenius SE & Co's financial health is underscored by solid operational margins and an effective balance sheet structure, supported by strong cash flow management. However, challenges in net income margins and erratic revenue growth affect the score.

Income Statement

Positive

The income statement reveals a mixed performance. Gross profit margin for TTM (Trailing-Twelve-Months) is healthy at 24.48%, and EBIT margin is 8.65%, indicating operational efficiency. However, the net profit margin is modest at 1.91%, highlighting challenges in translating revenue into profit. Revenue growth has been erratic, with a decline in recent years, affecting overall score.

Balance Sheet

Positive

The balance sheet shows strength in equity with an equity ratio of 44.91%. The debt-to-equity ratio stands at 0.70, suggesting a balanced capital structure. However, the return on equity (ROE) is low at 2.17%, indicating limited effectiveness in generating returns on invested capital.

Cash Flow

Positive

The cash flow statement is robust, with a strong operating cash flow to net income ratio of 6.19, indicating effective conversion of income into cash. Free cash flow growth is notable, and the free cash flow to net income ratio is 3.95, highlighting efficient cash management practices. Nevertheless, recent fluctuations in free cash flow growth suggest potential volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.83B	22.30B	40.84B	37.52B	36.28B
Gross Profit	5.38B	5.06B	10.72B	10.31B	10.32B
EBITDA	3.14B	2.73B	3.09B	6.84B	7.19B
Net Income	471.00M	-594.00M	1.37B	1.82B	1.71B
Balance Sheet
Total Assets	43.55B	45.28B	76.42B	71.96B	66.65B
Cash, Cash Equivalents and Short-Term Investments	2.05B	2.56B	2.35B	2.75B	2.00B
Total Debt	13.58B	15.83B	27.76B	27.16B	25.91B
Total Liabilities	23.26B	25.63B	44.20B	42.67B	40.62B
Stockholders Equity	19.54B	19.00B	20.41B	19.00B	16.95B
Cash Flow
Free Cash Flow	1.52B	3.32B	2.28B	3.03B	4.14B
Operating Cash Flow	2.45B	4.46B	4.20B	5.08B	6.55B
Investing Cash Flow	-510.00M	-3.19B	-2.61B	-2.82B	-3.01B
Financing Cash Flow	-2.18B	-1.38B	-1.60B	-1.45B	-3.12B

Fresenius SE & Co Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price12.18

Price Trends

50DMA

12.30

Negative

100DMA

11.61

Positive

200DMA

10.33

Positive

Market Momentum

MACD

-0.02

Negative

RSI

48.48

Neutral

STOCH

65.17

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSNUY, the sentiment is Neutral. The current price of 12.18 is below the 20-day moving average (MA) of 12.24, below the 50-day MA of 12.30, and above the 200-day MA of 10.33, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSNUY.

Fresenius SE & Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSNUY	73 Outperform	$27.02B	60.56	6.23%	2.26%	-19.78%	―
UHS	73 Outperform	$9.98B	8.16	18.66%	0.49%	9.61%	39.65%
DVA	70 Outperform	$10.97B	14.45	260.92%	―	5.11%	14.28%
THC	67 Neutral	$14.54B	9.99	41.09%	―	-1.09%	-43.10%
FMS	66 Neutral	$15.18B	22.76	4.36%	0.11%	-0.91%	27.17%
EHC	65 Neutral	$10.80B	22.12	25.33%	0.63%	11.21%	30.38%
Sector *	52 Neutral	$7.58B	0.48	-62.71%	2.36%	15.33%	0.41%

* Healthcare Sector Average

Performance Comparison

FSNUY

Fresenius SE & Co

12.18

3.34

37.78%

DVA

DaVita

145.98

9.36

6.85%

FMS

Fresenius Medical Care

26.15

7.22

38.14%

EHC

Encompass Health

108.26

15.94

17.27%

THC

Tenet Healthcare

156.06

6.36

4.25%

UHS

Universal Health

162.82

-50.08

-23.52%

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.Date of analysis: May 17, 2025