Fresenius Medical Care AG & Co. KGaA (FMS) shares are trading at lower $39.88 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $45.38.
To add more color to this target, the company’s high over the last year is $46.55 and the low is $29.17. Over the last 52 weeks, FMS is up 14.96% while the S&P 500 is up 7.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, FMS reported a profit of $1.58 billion. Fresenius Medical Care AG & Co. KGaA also saw revenues increase to $5.02 billion. In addition, FMS has free cash flow of $2.65 billion as of 06-2020. The company’s EBITDA came in at $1.17 billion which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FMS has a short ratio of 3.09 and outstanding shares of 609.22M.
FMS has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 3.69. Fresenius Medical Care AG & Co. KGaA FMS also noted assets of $37.65 billion at the end of the last quarter. Investors should also keep an eye on sector updates as FMS has historically followed its peers on positive news.
All told, Fresenius Medical Care AG & Co. KGaA FMS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FMS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Fresenius Medical Care AG & Co. KGaA FMS is now commanding a market cap of 24.30B and a float of 396.37M. FMS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FMS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in FMS, either long or short, and we have not been compensated for this article.