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Fresenius Medical Care AG & Co. KGaA ADR FMS

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Fresenius Medical Care Delivers Solid Q1 Despite Coronavirus-Related Challenges; Shares Undervalued

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat Fresenius Medical Care released its first-quarter results and maintained its 2021 guidance for a constant-currency profit decline in the high teens to the mid-20s related to coronavirus challenges. At first glance, this announcement does not materially change our fair value estimate, although we may tinker with our expectations for 2021 a bit, as we suspect there is room to improve relative to our estimates given first-quarter trends and ongoing vaccination efforts that could reduce COVID-19 challenges through the remainder of 2021. Shares remain mildly undervalued.

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Company Profile

Business Description

Fresenius Medical Care is the largest dialysis company in the world, treating over 345,000 patients from over 4,000 clinics across the globe as of December 2020. 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.

Contact
Else-Kroener-Strasse 1
Bad Homburg, HE, 61352, Germany
T +49 61726090
Sector Healthcare
Industry Medical Care Facilities
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 125,364

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