Fresenius Medical Care AG American Depositary Shares (Each representing 1/2 of an Ordinary Share) (FMS)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $1.6 billion in annual free cash flow (12.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Attractive 3.6% dividend yield providing steady income returns
• Established organization with 1,09,698 employees providing operational scale

Concerns

• Revenue declining at 0.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Fresenius Medical Care AG American Depositary Shares (Each representing 1/2 of an Ordinary Share) is a mid-cap healthcare company valued at $12.5 billion. The business generates $19.6 billion in annual revenue with a 1.7% net margin and $1.6 billion in free cash flow. From a quality standpoint, Fresenius shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is attractively valued at 11.5x earnings, with offers a 50% margin of safety vs Graham Number of $46. Growth dynamics show revenue growing at -0.3% and profit growth of 388.9%. The 3.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.6 billion in annual free cash flow (12.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Sluggish -0% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer