- FMS, an underfollowed company from Germany, is the world’s leading provider of products and services for patients with renal diseases.
- It controls the entire value chain from the manufacturing of dialysis equipment to a global network of more than 4,000 dialysis clinics.
- The company's business model is particularly recession-resistant and is expected to continue to grow at a moderate rate. However, Fresenius' profitability leaves a lot to be desired.
- Fresenius' dividend has been increased since at least 1998 at a CAGR of 9.4%. Notably, the dividend growth rate has not slowed down significantly over the years.
- While dividend growth is expected to continue, I would like to see management prioritize deleveraging over buybacks given the weak interest coverage ratio of currently only 4.4x normalized FCF.
For further details see:
Fresenius Medical Care: World Leader In Dialysis, But Still Not Exciting