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Does The Data Make Fresenius Medical Care AG & Co. KGaA (ETR:FME) An Attractive Investment?

Simply Wall St

I've been keeping an eye on Fresenius Medical Care AG & Co. KGaA (ETR:FME) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FME has a lot to offer. Basically, it is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Fresenius Medical Care KGaA here.

Established dividend payer and good value

FME is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the healthcare industry, FME is also trading below its peers, relative to earnings generated. This bolsters the proposition that FME's price is currently discounted.

XTRA:FME Intrinsic value, September 26th 2019

For those seeking income streams from their portfolio, FME is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.9%.

XTRA:FME Historical Dividend Yield, September 26th 2019

Next Steps:

For Fresenius Medical Care KGaA, I've put together three important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for FME’s future growth? Take a look at our free research report of analyst consensus for FME’s outlook.
  2. Historical Performance: What has FME's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FME? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.