DB:FRE

Stock Analysis Report

Fresenius SE KGaA

Executive Summary

Fresenius SE & Co. KGaA, a health care group, provides products and services for dialysis, hospitals, and outpatient medical care worldwide.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Fresenius SE KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

FRE

1.9%

DE Healthcare

1.4%

DE Market


1 Year Return

-27.4%

FRE

-19.4%

DE Healthcare

3.7%

DE Market

Return vs Industry: FRE underperformed the German Healthcare industry which returned -19.4% over the past year.

Return vs Market: FRE underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

FREIndustryMarket
7 Day3.2%1.9%1.4%
30 Day-1.5%-3.7%1.3%
90 Day-3.7%-5.8%3.4%
1 Year-26.2%-27.4%-17.9%-19.4%7.0%3.7%
3 Year-35.9%-38.1%-28.1%-30.7%18.5%8.3%
5 Year17.7%11.8%15.8%9.4%42.2%22.9%

Price Volatility Vs. Market

How volatile is Fresenius SE KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fresenius SE KGaA undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRE (€43.4) is trading below our estimate of fair value (€130.54)

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


Price To Earnings Ratio

PE vs Industry: FRE is good value based on its PE Ratio (13x) compared to the Healthcare industry average (25.4x).

PE vs Market: FRE is good value based on its PE Ratio (13x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: FRE is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FRE is overvalued based on its PB Ratio (1.5x) compared to the DE Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Fresenius SE KGaA forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRE's forecast earnings growth (8.9% per year) is above the savings rate (0.2%).

Earnings vs Market: FRE's earnings (8.9% per year) are forecast to grow slower than the German market (12.7% per year).

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

Revenue vs Market: FRE's revenue (5.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: FRE's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRE's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Fresenius SE KGaA performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRE's earnings have grown by 13.8% per year over the past 5 years.

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

Earnings vs Industry: FRE had negative earnings growth (-7%) over the past year, making it difficult to compare to the Healthcare industry average (19.5%).


Return on Equity

High ROE: FRE's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: FRE's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: FRE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fresenius SE KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: FRE's short term assets (€14.9B) exceeds its short term liabilities (€13.7B)

Long Term Liabilities: FRE's short term assets (14.9B) do not cover its long term liabilities (25.8B)


Debt to Equity History and Analysis

Debt Level: FRE's debt to equity ratio (81.5%) is considered high

Reducing Debt: FRE's debt to equity ratio has reduced from 102.3% to 81.5% over the past 5 years.

Debt Coverage: FRE's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: FRE's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

Inventory Level: FRE has a high level of physical assets or inventory.

Debt Coverage by Assets: FRE's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Fresenius SE KGaA's current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FRE's dividend (1.84%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: FRE's dividend (1.84%) is low compared to the top 25% of dividend payers in the German market (3.83%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.9%), FRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRE's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

What is the CEO of Fresenius SE KGaA's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Stephan Sturm (56yo)

3.3yrs

Tenure

€6,025,000

Compensation

Mr. Stephan Sturm serves as Chairman of the Management Board, Chief Executive Officer and President at Fresenius Management SE, the General Partner of Fresenius SE & Co KGaA since July 1, 2016 and its Memb ...


CEO Compensation Analysis

Compensation vs. Market: Stephan's total compensation ($USD6.71M) is about average for companies of similar size in the German market ($USD4.64M).

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


Management Age and Tenure

6.8yrs

Average Tenure

55yo

Average Age

Experienced Management: FRE's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

60yo

Average Age

Experienced Board: FRE's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Stephan Sturm (56yo)

    CEO, President & Chairman of Management Board - Fresenius Management SE

    • Tenure: 3.3yrs
    • Compensation: €6.03m
  • Ernst Wastler (60yo)

    Member of Management Board - Fresenius Management SE

    • Tenure: 11.8yrs
    • Compensation: €2.99m
  • Francesco De Meo (55yo)

    Member of Management Board - Fresenius Management SE

    • Tenure: 11.8yrs
    • Compensation: €3.81m
  • Jürgen Götz (55yo)

    Chief Legal & Compliance Officer & Labor Relations Director and Member of Management Board - GP

    • Tenure: 12.3yrs
    • Compensation: €3.02m
  • Mats Henriksson (52yo)

    Member of Management Board - Fresenius Management SE

    • Tenure: 6.8yrs
    • Compensation: €3.69m
  • Rachel Empey (43yo)

    CFO & Member of Management Board - Fresenius Management SE

    • Tenure: 2.2yrs
    • Compensation: €2.94m
  • Rice Powell (64yo)

    Member of Management Board - Fresenius Management SE

    • Tenure: 6.8yrs
    • Compensation: €6.63m
  • Markus Georgi

    Senior Vice President of Investor Relations

    • Tenure: 4.5yrs

Board Members

  • Gerd Krick (81yo)

    Chairman of Supervisory Board

    • Tenure: 16.8yrs
    • Compensation: €640.00k
  • Klaus-Peter Müller (75yo)

    Member of Supervisory Board

    • Tenure: 11.4yrs
    • Compensation: €340.00k
  • Mike Diekmann (65yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €375.00k
  • Konrad Kölbl (60yo)

    Member of Supervisory Board

    • Tenure: 12.3yrs
    • Compensation: €320.00k
  • Niko Stumpfögger

    Deputy Chairman of the Supervisory Board

    • Tenure: 12.3yrs
    • Compensation: €382.00k
  • D. Albrecht (70yo)

    Member of Supervisory Board

    • Tenure: 8.8yrs
    • Compensation: €300.00k
  • Iris Löw-Friedrich (59yo)

    Member of Supervisory Board

    • Tenure: 3.4yrs
    • Compensation: €300.00k
  • Stefanie Balling (51yo)

    Member of Supervisory Board

    • Tenure: 3.4yrs
    • Compensation: €300.00k
  • Frauke Lehmann (56yo)

    Member of Supervisory Board

    • Tenure: 3.4yrs
    • Compensation: €300.00k
  • Oscar De Paco (45yo)

    Member of Supervisory Board

    • Tenure: 3.4yrs
    • Compensation: €300.00k

Company Information

Fresenius SE & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fresenius SE & Co. KGaA
  • Ticker: FRE
  • Exchange: DB
  • Founded: 1912
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: €24.163b
  • Shares outstanding: 557.20m
  • Website: https://www.fresenius.com

Number of Employees


Location

  • Fresenius SE & Co. KGaA
  • Else-Kröner-Strasse 1
  • Bad Homburg vor der Höhe
  • Hessen
  • 61352
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FREBRSE (Berne Stock Exchange)YesBearer Ordinary SharesCHCHFNov 1992
FREDB (Deutsche Boerse AG)YesBearer Ordinary SharesDEEURNov 1992
FREXTRA (XETRA Trading Platform)YesBearer Ordinary SharesDEEURNov 1992
0OO9LSE (London Stock Exchange)YesBearer Ordinary SharesGBEURNov 1992
FRE NBMV (Bolsa Mexicana de Valores)YesBearer Ordinary SharesMXMXNNov 1992
FREDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer Ordinary SharesGBEURNov 1992
FSNU.FOTCPK (Pink Sheets LLC)YesBearer Ordinary SharesUSUSDNov 1992
FREBIT (Borsa Italiana)YesBearer Ordinary SharesITEURNov 1992
FREWBAG (Wiener Boerse AG)YesBearer Ordinary SharesATEURNov 1992
FREADB (Deutsche Boerse AG)SPON ADR EA REP 0.125 ORD SHSDEEUROct 2011
FSNU.YOTCPK (Pink Sheets LLC)SPON ADR EA REP 0.125 ORD SHSUSUSDOct 2011
FRENMUN (Boerse Muenchen)NPV (NEW SHS)DEEURJan 2019

Biography

Fresenius SE & Co. KGaA, a health care group, provides products and services for dialysis, hospitals, and outpatient medical care worldwide. The company operates through four segments: Fresenius Medical Ca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.