DAX Title Fresenius - Healthcare on discount

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Fresenius is a health care group, that provides products and services for dialysis (clinical purification of the blood by dialysis, as a substitute for the normal function of the kidney), hospitals, and outpatient medical care in Germany and internationally.  They own over 30% of Fresenius Medical Care, which is listed on the german stock exchange with a market cap of €19billion.

The 52-week high was €46.39 and the 52-week low was €31.05, today closing at €39.80 - right in the middle.

 

On the 1-year chart we see a resistance level at €40, but as well an upward trend since the big fall starting in October/November!

The long-term, 10-year chart shows a long slow upward trend, with a peak in 2017, and since then downward trending! ✅

The shareholder structure

The Else Kröner-Fresenius-Stiftung is the biggest shareholder with 26%, it's a non-profit foundation dedicated that is supporting medical research and medical-humanitarian development projects. Other famous top funds such as Vanguard and Blackrock are active here as well! ✅

The financial statements and balance sheet first

Assets consist of a cash position of €1.8billion, total assets have grown from 46billion to 66billion the last 5 years! 

On the other side of the balance sheet, we find that the debt-to-equity ratio is 60%, with the 30% stake or €9 billion in Fresenius Medical Care under Liabilities ("Minderheitanteil"). The equity part has grown the last year, but the liabilities have grown as well, a little bit faster than the equity - but fully acceptable ✅

The Income Statement gives us a growing Topline ("Umsatz"), and a stable EBIT ("Operatives Ergebnis") of ~4.4billion, every year! After interest and taxes, Fresenius had a Net Income of €2.8billion in 2020, but we have to deduct the fully consolidated FMC, so we end up with only 30% stake in FMC! So bottom-line gives us a €1.7billion Earning ✅

 The dividend yield is 2.22% and has grown steadily every year for the last 4 years. The company is paying out ~30% of the Net Income to the shareholders! 
 

The PE is 13, compared to the average P/E of Healthcare products of 330, or the average PE of Healthcare Support Service of 100!

I bought the company today as a first position