Fresenius Medical Care AG & Co. KGaA
🇩🇪 FME.XETRA · Frankfurt · DE0005785802
Healthcare
EUR 38.67 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 38.67 ÷ 3.36 = 11.5
TTM period through: 2025-12-31
Forward P/E (estimated): 9.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.5
Yield (Fwd)
3.85%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.86%
Net Debt/EBITDA (TTM)
3.6x
Latest quarter: 12.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 12.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
44.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 43.2%
Cash Flow Payout (TTM): 15.8%
FCF Coverage (TTM): 4.18x
ROE
7.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
5.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Fresenius Medical Care is a global leader in essential kidney care, offering highly predictable, non-discretionary revenue streams backed by a robust market position. While near-term US reimbursement headwinds have caused market pessimism, the company's strong free cash flow and strategic turnaround efforts make this a classic temporary problem. Worth considering for new positions at current levels (P/E 11.5, 3.8% yield), offering an attractive entry point for investors seeking defensive healthcare exposure and reliable income.
Sector Context
Fresenius Medical Care is a global healthcare leader specializing in life-saving dialysis products and services for patients with chronic kidney failure. In the context of dividend investing, the healthcare sector—specifically chronic care—offers highly predictable, non-discretionary revenue streams that act as reliable defensive assets during economic uncertainty.
Temporary Opportunity Identified
US reimbursement headwinds and competitive pressures have led management to flag 2026 as a 'transition year,' creating near-term market caution that obscures the underlying stability of the essential dialysis business.
📊 Strategy Analysis
- • Trading at an attractive P/E of 11.5, fitting perfectly into the ideal 8-15x valuation range for quality dividend payers.
- • Highly defensive, recurring cash flows from essential dialysis services provide excellent dividend coverage, evidenced by a low cash flow payout ratio of 15.7%.
- • The recent completion of the second tranche of the share buyback program signals strong management confidence in the company's valuation and long-term trajectory.
- • The 2023 dividend cut was a prudent strategic reset rather than a sign of structural decline, allowing the company to fortify its balance sheet.
⚠ What to Watch
- • Net Debt to EBITDA sits at 3.63x, which exceeds the conservative 3.0x threshold and requires continued stable cash generation to service.
- • Management has designated 2026 as a strategic transition year amid US reimbursement headwinds, which may constrain near-term growth.
- • Return on Equity (ROE) remains relatively modest at 7.9%, reflecting ongoing operational turnaround efforts and structural healthcare margin pressure.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.