Fresenius SE Shares Look Cheap to Us With Positive Upcoming Catalysts

Narrow-moat Fresenius SE's share performance has been weak during the past few years, reflecting a variety of challenges since the pandemic hit. However, the declining share price has been related primarily to multiple compression, rather than a material change in earnings power. Investor sentiment could change if a positive catalyst emerges to get its bottom line moving again, which is possible in 2023 and beyond. With shares trading at just 8 times 2022 expected earnings and potential profit growth in the high-single digits annually during the next five years, we find Fresenius SE shares appealing.