Current Analysis: Fresenius Medical Care (FMS)

Mark, Marker, Hand, Write, Glass, Glass Pane

Image Source: Pixabay

Fresenius Medical Care (FMS) is the largest dialysis company in the world, treating over 300,000 patients from roughly 3,750 clinics across the globe as of mid-2024.

In addition to providing dialysis services, the firm is a leading supplier of dialysis products, including machines, dialyzers, and concentrates. Fresenius accounts for about 35% of the global dialysis products market and benefits from being the world's only fully integrated dialysis business.

Services account for roughly 80% of firm-wide revenue, including care coordination and ancillary operations, while products account for the other roughly 20%.

Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

Three key data points gauge Fresenius or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

FMS Price

Over the past year, Fresenius's share price fell just over 30% from $26.09 to $18.14 as of Monday’s market close.

If Fresenius shares trade in the range of $16.00 to $26.00 this next year, their recent $18.14 share price might rise to $21.50 by next year. Of course, the FMS price could also drop about the same $3.36 estimated amount or more.

My $3.36 upside is a little less than the one median of one-year target prices estimated by five analysts tracking FMS for brokers.

FMS Dividend

Fresenius has paid annual variable dividends since June 1999, except for 2023. The most recent $0.64 annual dividend was declared April 15th for shareholders of record on May 17th and the dividend was paid on June 3rd. The forward-looking $0.64 annual dividend yields 3.54% at Monday’s closing price.

FMS Returns

To put it all together, a $4.00 estimated one-year gross gain per share shows up when adding FMS’s  $0.64 annual dividend to the estimated price upside of $3.36, equalling $4.00.

A little over $1000 buys us 55 shares at their $18.14 per share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.18 per share out of the $4.00 annual, gross gain to reveal a net gain of $3.82 X 55 shares = $210.10 for about a 21% estimated net gain for the year.

Furthermore, the $35.40 annual dividend income from $1K invested is just under 2 times Fresenius’s $18.14 single share price. By these numbers, Fresenius Medical Care AG may be an ideal dividend dog.

You might choose to pounce on FMS.  It is a 28-year-old annual dividend-paying German-based Integrated Dialysis firm with almost a 24-year record paying annual dividends.

The exact track of FMS's future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: Choice Properties REIT
Current Analysis: Flagship Communities REIT
Current Analysis: Modiv Industrial

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments