Daily Stock Analysis: Fresenius SE & Co KGaA

turned on black iPhone 7

Image Source: Unsplash

Fresenius SE & Co KGaA, with the ticker FSNUY, is a large-cap medical care facilities company operating in the healthcare business sector. This is the third of five consumer cyclical candidates competing for the forty-second slot in the Viital folio. It is my first report on Freseniuis for my Viital portfolio. I have reported on this stock for one of my previous six portfolios.

Fresenius SE is a healthcare holding company based in Germany with four segments.

First, the company owns a large stake in dialysis service provider and equipment manufacturer Fresenius Medical Care, which accounted for 49% of consolidated revenue in 2020.

Second, the Kabi segment (19% of revenue) manufactures intravenous drugs, nutrition products, infusion and transfusion therapies, and related pumps.

Third, at 26% of revenue, the Helios segment operates private hospitals in Germany, Spain, and Latin America.

Fourth, at 6% of revenue, Vamed provides a variety of services such as healthcare facility construction and operation management, including post-acute care rehabilitation.

The company was formerly known as Fresenius SE and changed its name to Fresenius SE & Co. KGaA in January 2011.

Fresenius SE & Co. KGaA was founded in 1912 and is headquartered in Bad Homburg vor der Höhe, Germany.

Three key data points gauge any dividend equity or fund such as Fresenius SE & Co KGaA.

(1) Price

(2) Dividends

(3) Returns

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

FSNUY Price

Fresenius’s price per share was $7.20 as of yesterday's market close. One year ago its price was $12.99. Thus, FSNUY's share price fell by $5.79 or about 45% in the past year.

If Fresenius’s stock trades in the range of $6.00 to $12.00 this next year, its recent $7.20 share price might rise by $1.80 to reach $9.00 by next year. My $1.80 upside estimate is based on the valuation from historic multiples calculated by YCharts. Their valuation is $0.88 higher,
 

FSNUY Dividends

Fresenius’s most recently declared an annual dividend of $0.24 was paid June 21st, to shareholders on record as of May 16th.

Since May 29, 2015, FSNUY has paid annual dividends.  The current forward-looking annual dividend of $0.24 equates to an annual yield of 3.34% as of yesterday's $7.20 share price.
 

FSNUY Returns

Adding the $0.24 Fresenius SE & Co KGaA. annual forward-looking dividend to my estimated one-year price upside estimate of $1.80 shows a $2.04 potential gross gain, per share, to be reduced by any costs to trade FSNUY shares.

At yesterday's $7.20 closing price, a little over $1000 would buy 139 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $2.04 gross gain estimate per share results in a net gain of $1.97 X 139 shares = $273.83, for a 27.4% net gain including a 3.34% forward-looking annual dividend yield.

Over the next year our $1K investment in Fresenius SE & Co KGaA. shares should generate $33.40 in cash dividends. Of course, a single share of FSNUY stock bought at yesterday's $7.20 price is over four times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is prime time to pick up FSNUY shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 4.64 times less than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Fresenius SE & Co KGaA. Only time and money invested in this stock will determine its market value.


More By This Author:

Daily Stock Analysis: Sanofi S.A.
Daily Stock Analysis: Gilead Sciences, Inc.
Current Report: American Eagle Outfitters

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 ...

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

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.