Fresenius Medical Care (FMS) AI Stock Analysis

• Market Cap: $14.75B
• Dividend Yield: 3.11%
• Average Volume (3M): 346.63K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.50
• Revenue Growth: 1.11%
• EPS Growth: 25.84%
• Country: US
• Employees: 112,035
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.53
• Shares Outstanding: 586,826,900
• 10 Day Avg. Volume: 471,518
• 30 Day Avg. Volume: 346,635
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $28.00
• Price Target Upside: 9.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $28.00 ▲(9.20% Upside)

Fresenius Medical Care's overall stock score reflects its stable financial performance and positive earnings call highlights, including strong revenue growth and a share buyback program. The technical analysis indicates a neutral trend, while the valuation is moderate with a decent dividend yield. Challenges such as reliance on debt and external cost pressures slightly temper the outlook.

Fresenius Medical Care Business Overview & Revenue Model

Company Description

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. In addition, it develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. As of February 23, 2022, it operated 4,171 outpatient dialysis clinics in approximately 150 countries. Fresenius Medical Care AG & Co. KGaA was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

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 reliance on debt and moderate net profitability are concerns.

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	19.52B	19.34B	19.45B	19.40B	17.62B	17.86B
Gross Profit	4.82B	4.76B	4.93B	5.31B	5.08B	5.54B
EBITDA	2.69B	3.21B	3.21B	1.58B	3.55B	4.13B
Net Income	656.43M	537.91M	499.00M	673.40M	969.31M	1.16B
Balance Sheet
Total Assets	31.29B	33.57B	33.93B	35.75B	34.37B	31.69B
Cash, Cash Equivalents and Short-Term Investments	2.19B	1.34B	1.56B	1.46B	1.64B	1.26B
Total Debt	11.02B	11.00B	12.08B	13.21B	13.32B	12.38B
Total Liabilities	16.96B	17.80B	19.10B	20.30B	20.39B	19.36B
Stockholders Equity	13.27B	14.58B	13.62B	13.99B	12.70B	11.22B
Cash Flow
Free Cash Flow	2.33B	1.69B	1.94B	756.00M	806.00M	2.15B
Operating Cash Flow	2.75B	2.39B	2.63B	2.17B	2.49B	4.23B
Investing Cash Flow	349.96M	-84.94M	-544.23M	-734.73M	-1.20B	-1.33B
Financing Cash Flow	-59.56M	-2.57B	-1.86B	-1.62B	-1.02B	-2.66B

Fresenius Medical Care Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Positive. The current price of 25.64 is above the 20-day moving average (MA) of 25.10, above the 50-day MA of 25.37, and above the 200-day MA of 24.98, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMS.

Fresenius Medical Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHS	78 Outperform	12.35B	9.94	17.94%	0.41%	9.61%	39.65%
ENSG	76 Outperform	9.63B	29.66	16.00%	0.15%	17.71%	41.83%
THC	75 Outperform	17.15B	12.42	39.58%	―	-1.09%	-43.10%
FMS	73 Outperform	$14.75B	20.62	4.72%	3.11%	1.11%	25.84%
EHC	73 Outperform	12.70B	24.26	17.23%	0.54%	11.80%	30.02%
DVA	61 Neutral	9.38B	12.89	-226.24%	―	5.09%	7.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Fresenius Medical Care Corporate Events

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.

Fresenius Medical Care Restructures with New Value-Based Care Segment

On June 1, 2025, Fresenius Medical Care AG restructured its operations by creating a new reportable segment called ‘Value-Based Care’ to align with internal management changes. This segment focuses on value-based kidney care, utilizing tech-enabled platforms and clinical care models, and aims to enhance the company’s market positioning by leveraging proprietary informatics and patient engagement tools. The restructuring reflects Fresenius Medical Care’s strategic shift towards risk-based care arrangements, potentially impacting its financial performance and stakeholder relations.

Fresenius Medical Care Reports Strong Q2 2025 Results Amid Strategic Initiatives

On August 5, 2025, Fresenius Medical Care announced its second quarter results for 2025, highlighting a 7% organic revenue growth and a 13% increase in operating income at constant currency. The company reported strong profitability gains and confirmed its full-year outlook, despite challenges such as higher patient outflow due to elevated mortality and missed treatments from a severe flu season. Fresenius Medical Care also announced the initiation of a share buyback program, reflecting confidence in its financial performance and commitment to returning capital to shareholders.

Fresenius Medical Care Launches EUR 1 Billion Share Buyback Program

On June 17, 2025, Fresenius Medical Care AG announced a share buyback program with a total volume of EUR 1 billion, to be executed in tranches over two years starting in the second half of 2025. This strategic move, part of the company’s ‘Strategy FME Reignite,’ aims to enhance shareholder value and reflects the company’s confidence in its financial stability and future growth prospects.