Current Analysis: Fresenius Medical Care

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Fresenius Medical Care (FMS) is the largest dialysis company in the world, treating about 345,000 patients from over 4,100 clinics across the globe as of December 2022.

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 firmwide revenue, including care coordination and ancillary operations, while products account for the other roughly 20%. Products typically enjoy a higher margin, making them a strong contributor to the bottom line.

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

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

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

FMS Price

Over the past year, Fresenius share price fell about 9.4% from $23.51 to $22.00 as of Tuesday’s market close.

If Fresenius shares trade in the range of $16.50 to $28.50 this next year, its recent $22.00 share price might rise to $22.85 by next year. Of course, Freseniuss price could drop about the same $0.85 estimated amount, or more.

My annual upside estimate of $0.85 however, is just $0.03 above Fresenius’s average annual price gain over the past 22 years.

FMS Dividend

Fresenius Medical Care AG  has paid variable annual dividends since September 2014,  Fresenius’s most recent A dividend of 0.63 was declared 4/15/24 for shareholders of record 5/17/24 and the payout is to be made  6/3/24.

A forward looking $0.23 annual dividend yields 3.04% at Monday’s $7.56 share price.

FMS Returns

To put it all together, add the Fresenius estimated annual dividend of $0.63. to the estimated price upside of $0.85 to find a $1.48 estimated gross gain for the coming year.

At Tuesday’s $22.00 share price, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.22 per share.

Subtracting that likely $0.22 brokerage cost from the $1.48 gross gain reveals a net gain of $1.26 X 45 shares = $56.70 for a 5.25% estimated net gain on the year.

You might choose to pounce on Fresenius Medical Care AG. It is a 28 year-old dividend paying Bad Homburg, Germany-based dialysis firm.  Furthermore, its estimated $28.80 annual dividend income from $1k invested is just over 1.3 times greater than Fresniuss recent $22.00 share price.

The exact track of Fresenius Medical Care AG’s upcoming 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.

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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 ...

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