Fresenius Medical Care AG & Co. KGaA (FME.DE) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FME

Fresenius Medical Care's recent performance was impacted by regulatory shifts and strategic investments in digital initiatives. Despite a 10% organic revenue growth and significant progress in strategic programs, the company's share price has seen dramatic moves, falling 10.8% over the past week and 8.7% in the last month. The company's Q3 earnings beat estimates, fueled by margin gains and solid organic growth across segments. Operating income grew 28% in Q3 2025, with a Group operating income margin of 11.7%. Regulatory news and strategic investments have contributed to the turbulence in the company's share price.

1.c. Company Highlights

Last Price	40.04
Change Percentage	-0.15%
Open	40.23
Previous Close	40.1
Market Cap ( Millions)	11748
Volume	902467
Year High	54.02
Year Low	39.1
M A 50	43.76
M A 200	45.16

FCF Yield	17.48%
Dividend Yield	3.60%
ROE	4.70%
Debt / Equity	83.07%
Net Debt / EBIDTA	301.07%
Price To Book	0.89
Price Earnings Ratio	17.9
Price To FCF	5.72
Price To sales	0.6
EV / EBITDA	6.81

2. Transcript Summary

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3. NewsRoom

We Think Fresenius Medical Care's (ETR:FME) Robust Earnings Are Conservative

Nov -12

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Fresenius Medical Care (XTRA:FME) Net Profit Margin Increase Reinforces Undervalued Narrative

Nov -05

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Is Fresenius Medical Care a Bargain After Recent Regulatory News and Share Price Drop?

Nov -05

Source:

FMS Stock Rises as Q3 Earnings Beat Estimates, Revenues Gain Y/Y

Nov -05

Source:

Fresenius Medical Care AG (FMS) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and ...

Nov -04

Source:

Health Care Roundup: Market Talk

Nov -04

Source:

Fresenius: Q3 Earnings Snapshot

Nov -04

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Fresenius Medical Care further accelerates organic revenue development and achieves an inflection in earnings growth, delivering 28% operating income growth in the third quarter of 2025

Nov -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Care Delivery

Expected Growth: 3.5%

Fresenius Medical Care's 3.5% growth in Care Delivery is driven by increasing demand for dialysis services, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on value-based care and integrated kidney care services contributes to growth. Furthermore, investments in digital health and data analytics enhance patient outcomes and operational efficiency, supporting revenue growth.

Care Enablement

Expected Growth: 4.5%

Fresenius Medical Care's Care Enablement segment growth of 4.5% is driven by increasing demand for value-based care, expansion of healthcare services in emerging markets, and strategic partnerships to enhance patient engagement and outcomes. Additionally, investments in digital health technologies and data analytics are improving operational efficiency and driving growth.

7. Detailed Products

Dialyzers

Fresenius Medical Care's dialyzers are designed to remove waste products from the blood during hemodialysis, providing a safe and efficient treatment for patients with end-stage renal disease.

Dialysis Machines

Fresenius Medical Care's dialysis machines are designed to provide safe and efficient hemodialysis treatment, with advanced features for patient safety and comfort.

Peritoneal Dialysis (PD) Solutions

Fresenius Medical Care's PD solutions are designed to provide a safe and effective treatment option for patients with end-stage renal disease, allowing for greater flexibility and autonomy.

Renal Pharmaceuticals

Fresenius Medical Care's renal pharmaceuticals are designed to support the treatment of patients with kidney disease, including medications for anemia management and bone disease.

Care Coordination Services

Fresenius Medical Care's care coordination services are designed to provide comprehensive care management for patients with kidney disease, including education, nutrition, and social services.

Home Dialysis Solutions

Fresenius Medical Care's home dialysis solutions are designed to provide patients with the flexibility and autonomy to perform dialysis in the comfort of their own homes.

8. Fresenius Medical Care AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

Fresenius Medical Care AG & Co. KGaA operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the company still faces competition from alternative dialysis treatments and home dialysis options.

Bargaining Power Of Customers

Fresenius Medical Care AG & Co. KGaA's customers are primarily healthcare providers and patients, who have limited bargaining power due to the company's dominant market position and high-quality products.

Bargaining Power Of Suppliers

Fresenius Medical Care AG & Co. KGaA relies on a few large suppliers for raw materials and components, giving them some bargaining power. However, the company's scale and diversification efforts mitigate this risk.

Threat Of New Entrants

The dialysis market has high barriers to entry, including regulatory hurdles, high capital expenditures, and the need for specialized expertise, making it difficult for new entrants to compete with Fresenius Medical Care AG & Co. KGaA.

Intensity Of Rivalry

The dialysis market is highly competitive, with several established players competing for market share. Fresenius Medical Care AG & Co. KGaA faces intense competition from companies like DaVita Inc. and U.S. Renal Care.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	46.94%
Debt Cost	4.16%
Equity Weight	53.06%
Equity Cost	8.45%
WACC	6.44%
Leverage	88.47%

11. Quality Control: Fresenius Medical Care AG & Co. KGaA passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Hikma Pharmaceuticals

A-Score: 5.3/10

Value: 4.9

Growth: 4.4

Quality: 6.1

Yield: 5.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Fresenius Medical Care

A-Score: 5.2/10

Value: 7.1

Growth: 3.0

Quality: 3.4

Yield: 3.8

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

Almirall

A-Score: 5.0/10

Value: 4.3

Growth: 2.2

Quality: 4.3

Yield: 2.5

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

DaVita

A-Score: 4.8/10

Value: 8.2

Growth: 7.0

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

Medicover

A-Score: 4.4/10

Value: 2.2

Growth: 6.8

Quality: 2.6

Yield: 1.2

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Orpea

A-Score: 4.2/10

Value: 10.0

Growth: 5.3

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.65%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.44%

Fresenius Medical Care AG & Co. KGaA - DE0005785802

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FME

1.c. Company Highlights

Higher Yield

Fairly Valued

Average Quality

Earnings Beats

Revenues Beats

Cheaper

Stable Momentum

Earnings Miss

Revenues Miss

Average Yield

Weak Momentum

Average Growth

Strong Momentum

Lower Quality

Lower Growth

Less Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Care Delivery

Expected Growth: 3.5%

Care Enablement

Expected Growth: 4.5%

7. Detailed Products

Dialyzers

Dialysis Machines

Peritoneal Dialysis (PD) Solutions

Renal Pharmaceuticals

Care Coordination Services

Home Dialysis Solutions

8. Fresenius Medical Care AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Fresenius Medical Care AG & Co. KGaA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.04$

Current Price

40.04$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA