Fresenius Medical Care (FMS) AI Stock Analysis

• Market Cap: $13.90B
• Dividend Yield: 3.28%
• Average Volume (3M): 382.95K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.49
• Revenue Growth: 4.09%
• EPS Growth: 13.17%
• Country: US
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.63
• Shares Outstanding: 586,826,900
• 10 Day Avg. Volume: 553,145
• 30 Day Avg. Volume: 382,951
• PEG Ratio: 3.12
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 7.62
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 5.57
• Enterprise Value/Ebitda: 10.24
• 1Y Price Target: $22.00
• Price Target Upside: -9.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.24
• Revenue Forecast (FY): $22.49B

• Rating: 65 Neutral
• Price Target: $26.00 ▲(7.04% Upside)

Fresenius Medical Care's overall score is driven by strong earnings call performance and fair valuation, offset by technical analysis indicating bearish trends and financial performance challenges. The company's strategic initiatives and share buyback program are positive, but operational and market challenges remain.

Fresenius Medical Care Business Overview & Revenue Model

Company Description

Fresenius Medical Care (FMS) is a global healthcare company specializing in providing products and services for individuals with renal diseases. The company operates in two main segments: the production of dialysis products and the provision of dialysis services. Its core offerings include dialysis machines, dialysis consumables, and various related services, making it a leading provider in the renal care market. With a strong presence in both the manufacturing and treatment sectors, Fresenius Medical Care is committed to improving the quality of life for patients with kidney failure worldwide.

How the Company Makes Money

Fresenius Medical Care generates revenue primarily through the sale of dialysis products and the provision of dialysis services. The company's revenue model is built on two key streams: the sale of medical equipment, such as dialysis machines and consumables (dialyzers, fluids, etc.), and the operation of outpatient dialysis clinics, where they provide treatment to patients. Additionally, Fresenius Medical Care earns income from long-term contracts with healthcare providers and government entities, which often include reimbursement for dialysis treatments. The company also benefits from strategic partnerships with healthcare organizations that enhance its service offerings and market reach, contributing to consistent revenue growth.

Fresenius Medical Care Financial Statement Overview

Summary

Fresenius Medical Care shows stable financial health with consistent revenue and robust operating cash flow. Improvements in EBIT and return on equity are positive, but the company should enhance net profitability to drive shareholder value. The reliance on debt is a potential risk.

Income Statement

Fresenius Medical Care has demonstrated consistent revenue performance with a slight decline from $19.5B in 2023 to $19.3B in 2024. Gross profit margins have been stable around 24-25%. The company has shown resilience in EBIT and EBITDA margins, with a notable recovery in EBIT from negative in 2022 to $1.39B in 2024. However, net income growth has been moderate, and the net profit margin remains relatively low at around 2.8% in 2024.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity increasing to $14.6B in 2024. The debt-to-equity ratio is relatively high at approximately 0.75, indicating a significant reliance on debt financing. The equity ratio is around 43.4%, which is stable but suggests moderate leverage. Return on equity improved to 3.7% in 2024, indicating better profitability on shareholder capital.

Cash Flow

Operating cash flow remains strong at $2.39B in 2024, supporting the company's liquidity. Free cash flow generation is robust, with a significant free cash flow to net income ratio of over 3x in 2024, highlighting efficient cash conversion. However, free cash flow declined from 2023 levels, posing a potential concern for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.64B	19.34B	19.45B	19.40B	17.62B	17.86B
Gross Profit	4.91B	4.76B	4.93B	4.89B	4.77B	5.54B
EBITDA	2.67B	3.21B	3.21B	3.42B	3.55B	4.13B
Net Income	718.20M	537.91M	499.00M	673.40M	969.31M	1.16B
Balance Sheet
Total Assets	30.89B	33.57B	33.93B	35.75B	34.37B	31.69B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.34B	1.56B	1.46B	1.64B	1.26B
Total Debt	10.47B	11.00B	12.08B	13.21B	13.32B	12.38B
Total Liabilities	16.98B	17.80B	19.10B	20.30B	20.39B	19.36B
Stockholders Equity	12.95B	14.58B	13.62B	13.99B	12.70B	11.22B
Cash Flow
Free Cash Flow	1.78B	1.69B	1.94B	1.44B	1.64B	3.18B
Operating Cash Flow	2.51B	2.39B	2.63B	2.17B	2.49B	4.23B
Investing Cash Flow	-423.49M	-84.94M	-544.23M	-734.73M	-1.20B	-1.33B
Financing Cash Flow	-2.16B	-2.57B	-1.86B	-1.62B	-1.02B	-2.66B

Fresenius Medical Care Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Negative. The current price of 24.29 is below the 20-day moving average (MA) of 26.46, below the 50-day MA of 25.98, and below the 200-day MA of 25.62, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 26.50 is Positive, neither overbought nor oversold. The STOCH value of 17.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMS.

Fresenius Medical Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENSG	78 Outperform	$10.42B	32.03	16.98%	0.14%	18.61%	35.76%
UHS	78 Outperform	$14.59B	10.89	19.97%	0.35%	10.21%	39.58%
THC	73 Outperform	$18.04B	14.07	34.51%	―	-0.56%	-53.50%
FMS	65 Neutral	$13.90B	17.42	5.31%	3.28%	4.09%	13.17%
EHC	62 Neutral	$11.60B	21.78	24.94%	0.55%	11.13%	27.53%
DVA	58 Neutral	$8.73B	12.74	―	―	5.14%	4.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Fresenius Medical Care Corporate Events

Fresenius Medical Care Reports Strong Q3 2025 Results and Strategic Progress

On November 4, 2025, Fresenius Medical Care announced its third-quarter results, highlighting a 28% growth in operating income and a 10% increase in organic revenue. The company reported significant progress in its FME Reignite strategy, achieving substantial savings and advancing its share buyback program. Despite divestments affecting revenue, the company confirmed its full-year outlook, indicating a positive trajectory in financial performance and strategic initiatives.

Fresenius Medical Care Unveils New Value-Based Care Segment in Q3 2025 Report

Fresenius Medical Care AG released its interim financial report for the three and nine months ended September 30, 2025. The company has restructured its operations by introducing a new Value-Based Care segment as of June 1, 2025, to enhance its focus on value-based kidney care. This strategic move is expected to improve the company’s market positioning by aligning its internal management reporting with recent changes. The report highlights the company’s financial condition and results of operations, providing insights into its performance and strategic direction.

Fresenius Medical Care Appoints Joseph Turk to Management Board

On October 1, 2025, Fresenius Medical Care announced the appointment of Joseph Turk as a new member of the Management Board, effective January 1, 2026. Turk will take over as CEO of the Care Enablement segment, succeeding Dr. Katarzyna Mazur-Hofsäß, who will retire at the end of the year. This transition is part of the company’s strategy to continue its margin improvement and innovation efforts, particularly with the rollout of the 5008X CAREsystem in the U.S. The appointment is expected to ensure the uninterrupted execution of the company’s FME Reignite strategy, with Turk’s experience and leadership being pivotal in advancing the company’s goals.

Fresenius Medical Care Boosts Value-Based Care with Strategic Investment and Leadership Change

Fresenius Medical Care announced significant advancements in its Value-Based Care segment by investing EUR 312 million to increase its ownership in Interwell Health, a leader in renal value-based care. This strategic move is part of the company’s FME Reignite strategy, aimed at driving growth and innovation while reducing costs. Additionally, Tommy P. O’Connor has been appointed as the new CEO of Interwell Health, effective October 1, 2025, succeeding Robert Sepucha. O’Connor’s leadership is expected to enhance the integration and value creation within the segment, furthering Fresenius’ commitment to high-quality, cost-effective kidney care.

Fresenius Medical Care Launches EUR 1 Billion Share Buyback Program

On August 11, 2025, Fresenius Medical Care announced the commencement of a share buyback program, which was initially disclosed on June 17, 2025. The program aims to repurchase up to 29,288,814 shares for a total of EUR 1 billion by August 10, 2027. This initiative is part of a strategic move to optimize capital structure and potentially enhance shareholder value. The buyback will be executed in two tranches, with the first tranche involving up to EUR 600 million worth of shares by April 30, 2026. The repurchased shares are primarily intended to be canceled, reducing the company’s share capital, while a smaller portion may be allocated to incentive-based compensation plans. This move is expected to impact the company’s financial operations and market positioning positively.