Last Update 18 Apr 25
Fair value Decreased 17%My main narrative for FRE:
- What former CEO Mark Schneider blow up to an inefficient giant, will now be cut down by actual CEO Michael Sen and trimmed on efficiency
- from formally 4 segments FMC (dialyses), Helios (private hospitals), Kabi(Generic & Infusions), Vamed (Projects & Digitalization) only 2 remain: Helios, Kabi, the other will be sold, and the intakes will help to restructure the financial situation
- under Mark Schneider the Spanish hospitals were acquired, this was a good deal: privat hospital runs well in Spain, because of their good reputation wealthy Latin Americans travel for medical treatments to Spain
I focus also on:
- More equity than debt. Ratio is at 62% (debt/equity). So fine.
- A ROE of about 20%. Past 1%, future 8%. For me still to low.
Actually it is 61% under fair value (FV $74), with moderate underlaying FCF
- 2024: €1.500m
- 2027: €1.600m
These are the type of investment cases I like, the market sees a catastrophic situation (therefore 61% under fair value), I believe they fix it. First comes the pain, then the money.
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