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Fresenius Medical: The Undervaluation Is Getting Clearer
2026-05-06 · via All Articles on Seeking Alpha

Summary

  • Fresenius Medical Care is undervalued at a sub-10x P/E despite 7-9% AEPS growth and improved fundamentals.
  • FMS has achieved 300-400 bps margin expansion, €800M+ in savings, and reduced leverage to 2.5x, supporting a more robust investment-grade profile.
  • Even with flat or low growth, FMS offers 40-60% multi-year upside to a $29/share price target, justifying a 'Buy' rating.
  • Risks from reimbursement, inflation, and US politics are manageable; FMS’s market leadership and cost controls underpin a favorable risk/reward.
  • I do much more than just articles at Wolf of Value: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
closeup adjust infusion pump set iv fluid intravenous drop saline drip on white background in a hospital.

Memorystockphoto/iStock via Getty Images

My coverage of Fresenius Medical Care (FMS) goes back a number of years at this point. The German company, Fresenius (FSNUY), has already gone well into profit and positive RoR - and I've even

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of FMS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

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