Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 26 Jul 2026
FRE.DE· Healthcare
Fresenius SE & Co. KGaA
Fresenius has weak profitability metrics and lacks a durable economic moat, making it a poor investment choice.
Buffett fit
Weak fit
Owner
12
Durability
10
Management
64
Price
64
Score updated 5 Oct 2026 · analysis from 26 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Fresenius outright, I would be worried about the company's ability to generate consistent profits, given its negative EPS CAGR of -2.81% over the last five years.
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The 10-year outlook for Fresenius appears bleak due to its inability to maintain profitability, as evidenced by its -143.14% max decline in EPS over the past five years.
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Fresenius has shown a slight increase in share count (0.12% CAGR), indicating minimal activity or shareholder returns.
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With an yield of 5.27% and of 16.2, the valuation does not provide a sufficient compared to the 8-10% target yield I seek.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue of $22.87 billion indicates a substantial market presence in healthcare.
- 2 of $1.08 billion suggests some ability to generate cash.
- 3Interest coverage ratio of 5.9 indicates that the company can meet its interest obligations comfortably.
- 4Current ratio of 1.32 shows that short-term obligations are covered, although not robustly.
Concerns
5- 1 of 5.9% is significantly below the sector's top-quintile cutoff of 10.7%.
- 2 of 24.9% is far below the sector's top-quintile cutoff of 77.9%.
- 3EPS CAGR of -2.81% indicates the company has not been able to grow earnings effectively.
- 4Net income margin of 5.5% is below the sector's top-quintile cutoff of 12.7%.
Price history
$43.63+6.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Fresenius operates primarily in the healthcare sector, providing products and services for chronically ill patients. The company generates $22.87 billion in revenue primarily through its Fresenius Kabi and Fresenius Helios segments. However, the low of 24.9% indicates significant pricing pressure and competitive challenges, resulting in limited cash flow generation.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
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