Fresenius Medical Care (FMS)
NYSE:FMS
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Fresenius Medical Care
(NYSE:FMS)
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Rating:66Neutral
Price Target:
$24.00
▲(2.52% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by resilient financial performance (notably strong free cash flow and improving margins) and a supportive valuation (low P/E with a solid dividend). These positives are tempered by only moderate technical strength (below the 200-day average with overbought near-term signals) and earnings-call risks, including flat full-year guidance and expected H2 regulatory/phasing headwinds alongside ongoing U.S. volume and restructuring pressures.
Positive Factors
Cash generation
Consistent, sizeable operating cash flow and materially positive free cash flow provide durable internal funding for capex, R&D, dividends and buybacks. Strong cash conversion reduces reliance on external financing and gives flexibility to absorb reimbursement or volume shocks over the medium term.
Negative Factors
TDAPA phasing risk
Regulatory reimbursement timing (TDAPA) created sizable one‑period benefit that is expected to reverse in H2. Such phasing injects recurring‑reimbursement uncertainty into annual results, complicates margin sustainability and planning, and can materially depress reported earnings when the benefit lapses.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, sizeable operating cash flow and materially positive free cash flow provide durable internal funding for capex, R&D, dividends and buybacks. Strong cash conversion reduces reliance on external financing and gives flexibility to absorb reimbursement or volume shocks over the medium term.
Read all positive factors
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.21B
Dividend Yield3.29%
Average Volume (3M)941.98K
Price to Earnings (P/E)11.9
Beta (1Y)0.50
Revenue Growth7.24%
EPS Growth67.43%
CountryUS
Employees112,035
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.65
Shares Outstanding537,129,300
10 Day Avg. Volume797,276
30 Day Avg. Volume941,978
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.83
Price to Sales (P/S)0.60
P/FCF Ratio6.96
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit3.94
Enterprise Value/Ebitda5.78
Forecast
1Y Price Target
$26.00Price Target Upside11.06% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.34
Revenue Forecast (FY)$22.63B
Fresenius Medical Care Business Overview & Revenue Model
Company Description
Fresenius Medical Care AG & Co. KGaA specializes in comprehensive kidney dialysis treatment and associated services, operating across Germany, North America, and numerous international territories. Through an extensive network of outpatient clinic...
How the Company Makes Money
FMS primarily makes money through (1) delivering dialysis treatments and related patient care services and (2) selling dialysis products and associated services.
1) Dialysis and care services (treatment revenue)
- Reimbursement for dialysis sessi...
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive operational and financial start to 2026: solid top‑line organic growth (4%), strong operating income growth (+10%) and margin expansion, meaningful FME25+ savings (EUR 50m), successful accelerated EUR 1bn share buyback, improved cash generation and clear progress on the 5008X rollout and clinical quality initiatives (90% catheter lock adoption, >100k 5008X treatments). Offsetting these positives are near‑term headwinds: front‑loaded restructuring/special costs (EUR 181m), regulatory pressures in China, U.S. volume challenges driven by weather, ACA subsidy expiry and elevated mortality, and a TDAPA phasing effect that is expected to be a material negative in H2 2026. Management confirmed the full‑year outlook and emphasized the temporary/phasing nature of several negatives, supporting a constructive but cautious tone.Positive Updates
Solid Group Revenue Growth
Organic revenue growth of 4% in Q1 2026 (3% at constant currency), with growth contributions from all three operating segments (Care Delivery organic +6%; Value‑Based Care +3%; Care Enablement +1% organic).
Negative Updates
U.S. Volume Pressure and Same‑Market Treatment Decline
U.S. same‑market treatment growth declined by 37 basis points in Q1; volumes were affected by severe weather (Jan–Feb), missed treatments, elevated mortality (above pre‑pandemic levels), and uncertainty following expiry of extended ACA subsidies. Company maintains a flat U.S. market growth assumption for 2026 and expects an approximate EUR 50 million full‑year impact from the ACA dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Group Revenue Growth
Organic revenue growth of 4% in Q1 2026 (3% at constant currency), with growth contributions from all three operating segments (Care Delivery organic +6%; Value‑Based Care +3%; Care Enablement +1% organic).
Read all positive updates
Company Guidance
Management confirmed full‑year guidance of broadly flat revenue and operating income "on a consistently high level as 2025" with an upside/downside range of mid‑single‑digit percent, and reiterated a group operating income margin target of 10.5–12% (Q1 margin 10.1%, +70 bps y/y). In Q1 the company delivered organic revenue growth of 4% (constant currency +3%), operating income growth of 10% (constant currency), realized EUR 50m of sustainable FME25+ savings, reported net special items of -EUR 181m (mainly FME25+ U.S. clinic closures), and benefited from TDAPA by roughly EUR 80m in the quarter (positive in H1, expected to be a headwind in H2); catheter‑lock contribution for H1 was guided ~EUR 90m with about half recognized in Q1. Cash measures and balance‑sheet metrics include operating cash flow up 39%, free cash flow EUR 40m (+94%), completion of the EUR 1bn share buyback (24.8m shares, ~8.5% of capital), net leverage ~2.6x (target corridor 2.5–3x), and the company continues to assume an inflation headwind of EUR 200–300m and an estimated ACA/coverage impact of ~EUR 50m for 2026.Fresenius Medical Care Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.36B | 19.63B | 19.34B | 19.45B | 19.40B | 17.62B |
| Gross Profit | 5.02B | 5.03B | 4.76B | 4.93B | 4.89B | 4.77B |
| EBITDA | 3.42B | 3.40B | 3.21B | 3.21B | 3.42B | 3.55B |
| Net Income | 944.67M | 978.37M | 537.91M | 499.00M | 673.40M | 969.31M |
Balance Sheet | ||||||
| Total Assets | 31.47B | 31.00B | 33.57B | 33.93B | 35.75B | 34.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.60B | 1.34B | 1.56B | 1.46B | 1.64B |
| Total Debt | 11.03B | 10.79B | 11.00B | 12.08B | 13.21B | 13.32B |
| Total Liabilities | 17.26B | 16.72B | 17.80B | 19.10B | 20.30B | 20.39B |
| Stockholders Equity | 13.24B | 14.28B | 14.58B | 13.62B | 13.99B | 12.70B |
Cash Flow | ||||||
| Free Cash Flow | 1.77B | 1.70B | 1.69B | 1.94B | 1.44B | 1.64B |
| Operating Cash Flow | 2.72B | 2.58B | 2.39B | 2.63B | 2.17B | 2.49B |
| Investing Cash Flow | -761.85M | -666.18M | -84.94M | -544.23M | -734.73M | -1.20B |
| Financing Cash Flow | -1.71B | -1.38B | -2.57B | -1.86B | -1.62B | -1.02B |
Fresenius Medical Care Technical Analysis
Positive
23.41
Price Trends
21.85
Positive
22.13
Positive
23.06
Positive
Market Momentum
0.32
Negative
67.18
Neutral
93.15
Negative
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 23.41 is above the 20-day moving average (MA) of 21.82, above the 50-day MA of 21.85, and above the 200-day MA of 23.06, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 93.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMS.
Fresenius Medical Care Risk Analysis
Fresenius Medical Care disclosed 26 risk factors in its most recent earnings report. Fresenius Medical Care reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We need to develop new internal functions to perform certain business services that Fresenius SE provided to us prior to the Conversion. Q4, 2023
2.
As a company with operations spanning 150 countries, we face specific risks from our global operations. Q4, 2023
Fresenius Medical Care Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.07B | 16.18 | 25.35% | 0.65% | 10.05% | 23.59% | |
72 Outperform | $8.86B | 5.88 | 20.93% | 0.35% | 10.42% | 33.92% | |
70 Outperform | $13.40B | 18.00 | -133.12% | ― | 6.68% | 2.79% | |
69 Neutral | $8.73B | 23.96 | 16.63% | 0.14% | 19.23% | 15.67% | |
68 Neutral | $15.04B | 9.13 | 40.55% | ― | 4.56% | 27.14% | |
66 Neutral | $12.21B | 11.85 | 7.16% | 3.29% | 7.24% | 67.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
FMS
Fresenius Medical Care
23.45
-4.24
-15.30%
DVA
DaVita
209.75
71.91
52.17%
EHC
Encompass Health
99.36
-20.35
-17.00%
THC
Tenet Healthcare
179.11
14.87
9.05%
ENSG
The Ensign Group
150.71
-1.70
-1.11%
UHS
Universal Health
145.97
-23.66
-13.95%
Fresenius Medical Care Corporate Events
Fresenius Medical Care Launches EUR 1 Billion Share Buyback Program
May 28, 2026
Fresenius Medical Care AG announced on May 28, 2026, that it will launch a new share buyback program running from May 28, 2026, to May 27, 2027, with a total volume of up to EUR 1 billion and up to 29,341,344 shares to be repurchased. The buyback,...
Fresenius Medical Care AGM Backs Higher Dividend, New Buyback Mandate and U.S. Rollout of 5008X System
May 26, 2026
At its Annual General Meeting on May 21, 2026, Fresenius Medical Care reported a milestone year in which it met its mid‑term financial and strategic targets for 2025, boosted profitability, and reduced leverage. Management highlighted an inc...
Fresenius Medical Care Files Q1 2026 Interim Report and Affirms Internal Control Compliance
May 5, 2026
Fresenius Medical Care filed a Form 6-K in May 2026 providing an interim report on its financial condition and results of operations for the three months ended March 31, 2026 and 2025. The filing outlines segment structures, reporting practices, a...
Fresenius Medical Care Posts Strong Q1 2026 Operating Gains Amid Costly U.S. Clinic Restructuring
May 5, 2026
On May 5, 2026, Fresenius Medical Care reported first-quarter 2026 results showing 4% organic revenue growth at constant currency and a 10% rise in adjusted operating income, expanding its adjusted margin to 10.1%. The company highlighted strong p...
Fresenius Medical Care Sets May 21, 2026 AGM With Dividend and New Buyback Mandate on Agenda
Apr 14, 2026
On April 14, 2026, Fresenius Medical Care AG filed a Form 6-K outlining documents for its Annual General Meeting, to be held in person on May 21, 2026 in Frankfurt. The filing includes English translations of key reports for fiscal 2025, such as t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.