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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Disclaimer
The user Tokyo has a position in XTRA:FRE. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.