FMSFresenius Medical Care AG
Is the business good?
A genuinely good business: earnings fully cash-backed (1.9×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FMS?
Fresenius Medical Care AG earns 7.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.2 points below what the capital costs: growth destroys value
- Operating margin
- 9.3%
Operating margin · Medical Care Facilities median 9.3% · 12 months to Q4 2025
- Cash conversion
- 1.86×
Cash conversion · 2.44× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 0.80%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 11% |
| FY2022 | 7.8% |
| FY2023 | 7.0% |
| FY2024 | 7.2% |
| FY2025 | 9.3% |
Details›
- Gross margin12 months to Q4 2025
- 26%
- Operating margin12 months to Q4 2025
- 9.3%
- Net margin12 months to Q4 2025
- 5.0%
- R&D as % of revenue
- 0.80%
- Revenue, trailing twelve months
- $19.6B
- Net income, trailing twelve months
- $978M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.