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Fresenius Medical Care
(NYSE:FMS)
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Rating:68Neutral
Price Target:
$28.00
▲(13.87% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by resilient, improving fundamentals with strong free cash flow and better margins, supported by constructive technical momentum. Reasonable valuation (moderate P/E and solid dividend yield) adds support, while the earnings call tempers upside due to flat revenue guidance, U.S. volume softness, and external/regulatory headwinds.
Positive Factors
Strong free cash flow generation
Sustained high operating and free cash flow provides durable funding for capital investment, debt reduction, and recurring shareholder returns. This cash profile increases resilience to reimbursement swings and funds the 5008X rollout and FME25+ initiatives without requiring structural financing changes.
Negative Factors
U.S. volume weakness & referral execution gap
Persistent U.S. treatment declines and a referral capture shortfall threaten the core recurring services revenue stream. Because in-center treatments drive both clinic economics and consumables demand, sustained U.S. volume underperformance would pressure utilization, margins and the return on recent equipment investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained high operating and free cash flow provides durable funding for capital investment, debt reduction, and recurring shareholder returns. This cash profile increases resilience to reimbursement swings and funds the 5008X rollout and FME25+ initiatives without requiring structural financing changes.
Read all positive factors
Fresenius Medical Care (FMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.62B
Dividend Yield3.37%
Average Volume (3M)565.69K
Price to Earnings (P/E)13.6
Beta (1Y)0.52
Revenue Growth7.24%
EPS Growth67.43%
CountryUS
Employees108,165
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)1.65
Shares Outstanding537,129,300
10 Day Avg. Volume542,998
30 Day Avg. Volume565,692
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.45Price Target Upside-8.70% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)2.33
Revenue Forecast (FY)$22.36B
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 generates revenue primarily through two complementary activities: (1) providing dialysis and related kidney-care services and (2) selling dialysis products and related therapies. On the services side, the company earns money by operating dialy...
Fresenius Medical Care Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call balanced meaningful operational and financial progress against notable execution and external headwinds. Highlights include strong operating income growth (+23%), margin expansion (+180 bps), EUR 67 million of sustainable FME25+ savings, improved cash generation (+11% operating cash flow), a successful 5008X rollout (227 clinics, >600k treatments) and a profitable turnaround in value-based care (EUR 18m operating income). Lowlights include a U.S. referral/capture execution gap driving a 0.9% decline in U.S. same‑market treatments and an expectation that U.S. volumes will remain around the Q2 level for 2026, regulatory and inflationary pressures in China and Care Enablement (EUR ~20m Q2 headwind), a EUR 103m special-item charge (TAVNEOS impairment), and TDAPA timing creating an H2 earnings headwind (net ~EUR 50m for the year). Overall, the positives around profitability, cash flow, capital returns and product rollout outweigh the near-term volume and regulatory challenges, though execution on U.S. referrals and China strategy will be key to sustaining momentum.Positive Updates
Strong Profitability and Margin Expansion
Group operating income grew 23% year-over-year (constant currency) with group operating margin expanding by 180 basis points, reflecting accelerating profitability and successful execution of cost and efficiency initiatives.
Negative Updates
U.S. Same-Market Treatment Decline and Referral Execution Gap
U.S. same-market treatment growth declined by 0.9% in Q2. Management identified an operational miss in the business development function that reduced capture of referrals, causing further softening from Q1 to Q2 and prompting organizational changes; they now expect U.S. same-market treatment growth for 2026 to remain around the Q2 level.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and Margin Expansion
Group operating income grew 23% year-over-year (constant currency) with group operating margin expanding by 180 basis points, reflecting accelerating profitability and successful execution of cost and efficiency initiatives.
Read all positive updates
Company Guidance
Management reiterated a broadly flat full‑year 2026 revenue outlook and said operating income should remain at a consistently elevated level (up/down mid‑single‑digit % range), confirming the full‑year guidance; they expect U.S. same‑market treatment growth for 2026 to be around the Q2 level (Q2 U.S. -0.9%, international +0.8%) and value‑based care to perform around breakeven for the year. They trimmed the expected full‑year TDAPA headwind to ~€50m (from ~€100m previously), noting Q2 showed ~€80m year‑over‑year TDAPA benefit while binders were ~€70m positive in H1 but are expected to become ~€120m negative in H2, netting the ~€50m FY effect; portfolio optimization is assumed to shave ~30 bps off FY revenue (50 bps in Q2). Operationally, FME25+ delivered ~€67m of sustainable quarterly savings (with ~€42m one‑time FME25+ costs and total special items of ~‑€103m in Q2), group operating income grew 23% in Q2 with ~180 bps margin expansion, organic group revenue was +5% (cc +4%), operating cash flow rose 11% and free cash flow was €625m, total net debt + lease liabilities up 6% YoY, net leverage ~2.6x (target corridor 2.5–3x), and the company completed a €1bn buyback and launched a second €1bn program (first tranche up to €600m, €94m repurchased so far: 2.5m shares ≈0.9% of share capital).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
Neutral
24.59
Price Trends
23.35
Positive
22.59
Positive
22.89
Positive
Market Momentum
0.46
Positive
47.30
Neutral
54.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMS, the sentiment is Neutral. The current price of 24.59 is above the 20-day moving average (MA) of 24.50, above the 50-day MA of 23.35, and above the 200-day MA of 22.89, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 54.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.02B | 18.27 | 25.35% | 0.67% | 10.05% | 23.59% | |
73 Outperform | $20.51B | 9.75 | 50.63% | ― | 5.43% | 65.86% | |
71 Outperform | $10.38B | 27.12 | 16.53% | 0.15% | 18.89% | 15.48% | |
71 Outperform | $10.19B | 6.87 | 20.66% | 0.51% | 10.05% | 28.53% | |
68 Neutral | $13.62B | 13.55 | 7.11% | 3.52% | 7.24% | 67.43% | |
60 Neutral | $15.41B | 23.65 | -133.12% | ― | 6.68% | 2.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
FMS
Fresenius Medical Care
23.89
1.01
4.41%
DVA
DaVita
188.69
60.88
47.63%
EHC
Encompass Health
110.90
-4.73
-4.09%
THC
Tenet Healthcare
261.74
102.48
64.35%
ENSG
The Ensign Group
178.65
20.75
13.14%
UHS
Universal Health
171.66
8.88
5.45%
Fresenius Medical Care Corporate Events
Fresenius Medical Care Refines Segment Reporting and Affirms Controls in Latest Form 6-K
Aug 4, 2026
Fresenius Medical Care AG has filed an August 2026 Form 6-K with the U.S. Securities and Exchange Commission, providing an interim report on its financial condition and results for the three and six months ended June 30, 2026 and 2025. The filing ...
Fresenius Medical Care Beats Q2 2026 Expectations and Reaffirms Full-Year Outlook
Aug 3, 2026
On August 3, 2026, Fresenius Medical Care reported unaudited second-quarter 2026 results that exceeded market expectations, with operating income excluding special items rising 23% at constant currency to EUR 569 million, driven by stronger-than-a...
Fresenius Medical Care Posts Double-Digit Q2 Income Growth and Accelerates U.S. 5008X Rollout
Aug 3, 2026
On August 3, 2026, Fresenius Medical Care reported second-quarter 2026 results showing 5% organic revenue growth at constant currency and a 23% increase in adjusted operating income, expanding the operating margin to 11.7%. Adjusted earnings per s...
Fresenius Medical Care Names Cassie McLean CEO of Care Delivery Segment
Aug 3, 2026
On August 3, 2026, Fresenius Medical Care announced that its Supervisory Board has appointed Cassie McLean as a member of the Management Board and Chief Executive Officer of the Care Delivery operating segment, effective August 1, 2026, succeeding...
Fresenius Medical Care Launches BEACON-US to Expand High-Volume Hemodiafiltration Across U.S. Dialysis Network
Jul 29, 2026
On July 29, 2026, Fresenius Medical Care announced BEACON-US, a large research initiative designed to generate real-world evidence on high-volume hemodiafiltration (HVHDF) in routine U.S. practice. The program supports the nationwide rollout of on...
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...
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.