Fresenius Medical Care provides dialysis care services related to the dialysis treatment a patient receives with end stage renal disease, and other health care services. The company was founded in 1996 and is based in Bad Homburg, Germany.
FMS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FMS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Fresenius Medical Care AG & Co KGaA ranked in the 63th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Fresenius Medical Care AG & Co KGaA, consider:
The company's balance sheet shows it gets 48% of its capital from equity, and 52% of its capital from debt. Notably, its equity weight is greater than merely 14.73% of US equities in the Healthcare sector yielding a positive free cash flow.
Fresenius Medical Care AG & Co KGaA's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 3.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RSCF, AMPH, DVA, EGRX, and CHE can be thought of as valuation peers to FMS, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
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Investment Thesis Fresenius Medical Care 5-year share price performance. Source: TradingView. Fresenius Medical Care (FMS) has a commanding ~38% share of the US Kidney Dialysis clinic treatment market from which it derives ~80% of its revenues, with medical product sales generating the other 20%. Over the past 3 years, the...
RBC Capital analyst Frank Morgan maintained a Hold rating on Fresenius Medical Care (NYSE:FMS) Corp. on Thursday, setting a price target of $42, which is approximately 6.90% above the present share price of $39.29.