Fresenius SE & Co. KGaA
🇩🇪 FRE.XETRA · Frankfurt · DE0005785604
Healthcare
EUR 43.58 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
19.4
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: 43.58 ÷ 2.24 = 19.4
TTM period through: 2025-12-31
Forward P/E (estimated): 12.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.0
Yield (Fwd)
2.41%
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): 2.39%
Net Debt/EBITDA (TTM)
3.1x
Latest quarter: 12.3x
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): 12.3x
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)
46.8%
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): 54.1%
Cash Flow Payout (TTM): 25.4%
FCF Coverage (TTM): 1.75x
ROE
8.0%
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
9.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Fresenius is a major global healthcare group currently executing a comprehensive corporate restructuring through its 'FutureFresenius' initiative. While underlying hospital operations remain robust and recent headline losses are tied to temporary structural shifts, the stock falls into the BELOW THRESHOLD quadrant due to its sub-3% yield and history of unreliable payouts. Not recommended for new positions, as conservative dividend investors can find better opportunities in more stable businesses with proven, growing dividends.
Sector Context
Fresenius is a global healthcare group that operates hospitals, provides inpatient/outpatient care, and supplies clinical nutrition and infusion therapies. While the healthcare sector generally provides defensive, non-cyclical cash flows ideal for dividends, complex corporate structures and heavy regulatory exposures can severely disrupt payout consistency.
Temporary Opportunity Identified
Massive non-cash accounting losses driven by the 'FutureFresenius' strategic restructuring, specifically the deconsolidation of Fresenius Medical Care and the exit from Fresenius Vamed.
📊 Strategy Analysis
- • Underlying operating companies (Fresenius Kabi and Fresenius Helios) continue to demonstrate strong organic revenue growth despite headline restructuring losses.
- • The current reduced dividend is well-covered by free cash flow (FCF coverage of 1.75x and a cash flow payout ratio of just 25.38%).
- • Company is actively deleveraging its balance sheet, improving its Net Debt/EBITDA to a more manageable 3.14x.
⚠ What to Watch
- • Current dividend yield of 2.39% falls significantly below the strategy's strict 3% minimum requirement for income generation.
- • Track record of poor dividend reliability, with three significant dividend cuts in the last decade (including a 38.4% cut in 2023) and a negative dividend CAGR of -2.2%.
- • Long-term fundamental deterioration evidenced by a 10-year revenue decline of 21% and a negative 5-year EPS CAGR of -7.2%.
- • Current valuation (P/E of 19.42) remains elevated for a company undergoing a complex turnaround and asset deconsolidation process.
📊 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.