Fresenius Medical Care AG
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€82.00 | Mlvbdnz | Jdfhl |
Fresenius Medical Care Turns in Decent Q3 but Reduces 2022 Profit Outlook Again; Shares Still Cheap
Narrow-moat Fresenius Medical Care turned in third-quarter results that slightly exceeded expectations. However, with ongoing challenges, the firm reduced its 2022 constant currency profit outlook again. While we've tinkered with our near-term assumptions, our long-term view of free cash flow—the key driver of our fair value estimate—has not changed materially. Also, with a new CEO at the helm, we expect the firm to announce value-enhancing initiatives that could take hold in 2023 and beyond. We are keeping our fair value estimate intact, and shares still appear cheap to us.