Quick Facts
- Fresenius is a German-based leader in medical therapy such as dialysis, inpatient and outpatient medical care and hospital management
- Latest addition to the Obermatt Europe Value Wikifolio
Pros
- Sturdy growth surpassed analysts’ expectations; strong Obermatt ranks ✔
- Innovative technologies in medical therapy, especially the use of AI in cancer diagnosis ✔
- An interesting industry with expected demand in the future ✔
Cons
- Fresenius is in a highly competitive market ❌
- Company’s debt levels should be carefully watched in the future, with EBITDA ratio of 6.3 ❌
- A restructure in the near future could shift company’s goals and profits ❌
Obermatt Ranks
 360° View | 94 |  | |
 Sentiment Rank | 48 |  | |
 Value Rank | 92 | | |
 Growth Rank | 79 | | |
 Safety Rank | 60 |  | |
 Combined Rank | 98 | |
We’re getting our Europe Value Wikifolio exposed to cutting edge medical therapy with Fresenius, a German leader in the field of dialysis and inpatient and outpatient medical care.
Do individual stock purchases and maintaining your stock portfolio take too much of your free time? Check out the first financial product based exclusively on the Obermatt 360° View: Obermatt Swiss Pearls Index.
What made us most interested in Fresenius, other than the all-green Obermatt ranks, is the dedication to modern technologies in screening and diagnosing that we discovered when researching the company: using artificial intelligence to detect polyps and cancer that can’t be seen by the human eye at one of the facilities they manage, Helios Dr. Horst Schmidt Hospital, being just one of the examples.
Retail investors hold the largest number of shares at Fresenius, around 43%, while institutions make up 30% of the shareholders. This means that even though the general public holds a considerable share of the company, this number may not be enough to change policy or leadership, if the decision doesn’t sit well with the larger shareholders.
End 2023, Fresenius reported a 13% rise in quarterly earnings (before tax and interests), which is 7% more than the analysts expected. Organic revenue growth is expected to be between 3% and 6% in 2024, while the operating profit should reach an 8% jump. This has also affected the stock price, as it is going up. However, the Obermatt Value Rank of 92 tells us that Fresenius is very well priced, especially taking into account past and expected growth and the strong products and services lineup the company offers.
Fresenius has a significant amount of debt: its EBITDA ratio is at 6.3 and EBIT was down 36% over the last year. As profits rise, the company’s ability to maintain the debt levels and keep a healthy balance sheet should be easier in the future, but its debt is still something that should be kept in mind.