Fresenius Offers Dialysis Care & Supplies Worldwide

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the healthcare sector. 

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing a large-cap German medical care firm. Its name is Fresenius Medical Care AG & Co. KGaA. Its trading ticker symbol is FMS.  

Fresenius Medical Care AG & Co. KGaA is a kidney dialysis company. It develops and manufactures a full range of dialysis machines, systems, and disposable products. The company provides dialysis care and related services.

In addition, it develops, acquires, and in-licenses renal pharmaceuticals; and offers non-dialysis products, including acute cardiopulmonary and apheresis products. 

The company sells its products to clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. 

As of December 31, 2017, it operated 3,752 outpatient dialysis clinics in approximately 50 countries. The company has operations in Germany, the United States, and internationally. 

Fresenius Medical Care AG & Co. KGaA was founded in 1996 and is headquartered in Bad Homburg, Germany.

I use three key data points to gauge the value of any dividend equity or fund like Fresenius Medical Care (FMS): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

FMS Price

Fresenius's price was $50.01 per share at yesterday's market close. A year ago its price was $48.80 for a gain of $1.21 per share in the past year.  

Assuming Fresenius's price will continue to trade in the range of $46.00 to $60.00 next year, its price could grow another $1.21 from $50.01 to $51.22 by June 28, 2019. 

FMS Dividends

Fresenius's most recently declared annual dividend was $0.63 per share paid June 4. That $0.63 dividend yields 1.25% at yesterday's $50.01 closing stock price.  

Gains For FMS?

Fresenius's $1.21 estimated year over year price gain plus an anticipated dividend of$0.63 makes a projected gross annual gain of $1.84 per share, which will be reduced by the costs to trade those shares.  

A little over $1,000.00 invested today at the $50.01 price buys 20 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.50 per share.

Taking that $0.50 brokerage cost out of the estimated $1.84 gross gain per share leaves a net gain of $1.34 X 20shares = $26.80 or a 2.65% potential net gain on a $1,000.20 investment.

Therefore, Fresenius Medical Care AG & Co. KGaA (whose ticker symbol is FMS), now shows a possible 2.65% net gain including a 1.25% dividend yield. 

Four analysts cover this stock:

Two say "buy" FMS.

Two says "hold" FMS shares.

Their four-analyst consensus recommendation is 2.0 or "outperform" and their price target is$56 or $4.78 over my $51.22 year over year target.

Y Charts rates FMS "neutral" for an overall "Y" rating. Y Charts also shows "average" for a Value score of 6 out of ten points. And YCharts ranks FMS "strong" with 9 out of 10possible Fundamental points. Y Charts Historic Valuation score for NVO is 10.6% undervalued at a $55.95 historic valuation.

You could look at all those numbers like this: Fresenius Medical Care(FMS) has made money, is making money, and could net a 2.65% to 10% net gain next year including a 1.25% annual dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Fresenius Medical Care (FMS) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.