Fresenius Medical Care KGaA (XTRA:FME) - Share price, News & Analysis

FME fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	1/6
Financial Health	4/6
Dividends	5/6

FME Stock Overview

Fresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America, and internationally.

Rewards

Trading at 63.7% below our estimate of its fair value

Earnings are forecast to grow 18.73% per year

Pays a reliable dividend of 2.87%

Risk Analysis

Has a high level of debt

Fresenius Medical Care KGaA Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fresenius Medical Care KGaA
Historical stock prices
Current Share Price	€47.09
52 Week High	€71.14
52 Week Low	€43.53
Beta	0.94
1 Month Change	-16.77%
3 Month Change	-22.47%
1 Year Change	-32.77%
3 Year Change	-31.79%
5 Year Change	-44.05%
Change since IPO	187.43%

Recent News & Updates

Jun 08

Does Fresenius Medical Care KGaA (ETR:FME) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 08

Fresenius Medical Care KGaA (ETR:FME) Will Pay A Larger Dividend Than Last Year At €1.35

Fresenius Medical Care AG & Co. KGaA's ( ETR:FME ) dividend will be increasing to €1.35 on 17th of May. This makes the...

Shareholder Returns

	FME	DE Healthcare	DE Market
7D	-4.8%	-3.2%	-0.1%
1Y	-32.8%	-29.8%	-22.0%

Return vs Industry: FME underperformed the German Healthcare industry which returned -29.9% over the past year.

Return vs Market: FME underperformed the German Market which returned -22% over the past year.

Price Volatility

Is FME's price volatile compared to industry and market?
FME volatility
FME Average Weekly Movement	4.2%
Healthcare Industry Average Movement	3.9%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	2.9%

Stable Share Price: FME is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FME's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	122,635	Rice Powell	https://www.freseniusmedicalcare.com

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.

Fresenius Medical Care KGaA Fundamentals Summary

How do Fresenius Medical Care KGaA's earnings and revenue compare to its market cap?
FME fundamental statistics
Market Cap	€13.80b
Earnings (TTM)	€877.72m
Revenue (TTM)	€17.96b

15.7x

P/E Ratio

0.8x

P/S Ratio

Is FME overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FME income statement (TTM)
Revenue	€17.96b
Cost of Revenue	€12.83b
Gross Profit	€5.13b
Other Expenses	€4.25b
Earnings	€877.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	3.00
Gross Margin	28.56%
Net Profit Margin	4.89%
Debt/Equity Ratio	59.3%

How did FME perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

45%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FME undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FME?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FME. This is calculated by dividing FME's market cap by their current preferred multiple.
What is FME's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€13.80b

FME key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	10.5x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does FME's PE Ratio compare to its peers?

FME PE Ratio vs Peers

The above table shows the PE ratio for FME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26x

Forward PE

Price-To-Earnings vs Peers: FME is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does FME's PE Ratio compare vs other companies in the Healthcare Industry?

Price-To-Earnings vs Industry: FME is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the German Healthcare industry average (15.7x)

Price to Earnings Ratio vs Fair Ratio

What is FME's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.7x
Fair PE Ratio	29.6x

Price-To-Earnings vs Fair Ratio: FME is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

Share Price vs Fair Value

What is the Fair Price of FME when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FME (€47.09) is trading below our estimate of fair value (€129.65)

Significantly Below Fair Value: FME is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: FME is good value based on its PEG Ratio (0.8x)

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Future Growth

How is Fresenius Medical Care KGaA forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FME's forecast earnings growth (18.7% per year) is above the savings rate (-0.05%).

Earnings vs Market: FME's earnings (18.7% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: FME's earnings are forecast to grow, but not significantly.

Revenue vs Market: FME's revenue (5.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: FME's revenue (5.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FME's Return on Equity is forecast to be low in 3 years time (10.8%).

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Past Performance

How has Fresenius Medical Care KGaA performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FME has high quality earnings.

Growing Profit Margin: FME's current net profit margins (4.9%) are lower than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: FME's earnings have declined by 8.5% per year over the past 5 years.

Accelerating Growth: FME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FME had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the Healthcare industry average (44.5%).

Return on Equity

High ROE: FME's Return on Equity (7.7%) is considered low.

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Financial Health

How is Fresenius Medical Care KGaA's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FME's short term assets (€8.0B) exceed its short term liabilities (€6.4B).

Long Term Liabilities: FME's short term assets (€8.0B) do not cover its long term liabilities (€13.8B).

Debt to Equity History and Analysis

Debt Level: FME's net debt to equity ratio (51.3%) is considered high.

Reducing Debt: FME's debt to equity ratio has reduced from 72.9% to 59.3% over the past 5 years.

Debt Coverage: FME's debt is well covered by operating cash flow (28.3%).

Interest Coverage: FME's interest payments on its debt are well covered by EBIT (6.3x coverage).

Balance Sheet

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Dividend

What is Fresenius Medical Care KGaA current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.87%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FME's dividend (2.87%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: FME's dividend (2.87%) is low compared to the top 25% of dividend payers in the German market (4.53%).

Stability and Growth of Payments

Stable Dividend: FME's dividends per share have been stable in the past 10 years.

Growing Dividend: FME's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.1%), FME's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.1%), FME's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure

CEO

Rice Powell (66 yo)

18.42yrs

Tenure

€5,424,000

Compensation

Mr. Robert Maurice Powell, Jr., also known as Rice, has been the Chief Executive Officer and Chairman of Management at Fresenius Medical Care Management AG, General Partner of Fresenius Medical Care AG & C...

CEO Compensation Analysis

Compensation vs Market: Rice's total compensation ($USD5.72M) is about average for companies of similar size in the German market ($USD5.63M).

Compensation vs Earnings: Rice's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FME's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: FME's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31