Hot value bet: Dividend aristocrat Fresenius after Q1

that Freseniusstock (NASDAQ: TSP) has been a hot value bet for quite some time. Even now, ahead of the DAX dividend season, the Dividend Aristocrat has been rated with a price-to-earnings ratio consistently below 12 and a dividend above 2.5%. This is a practical goal that is now very clear.

However, investors and interested parties should take a closer look at the Fresenius share after the figures for the first quarter. This value betting has just gotten a lot hotter. In a market environment, mind you, there are more and more uncertainties.

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Fresenius share: Hot value bet

The management of the Fresenius share can predict a solid increase in sales of 8% and currency-adjusted 5% to 9.72 billion euros in the first quarter. On the other hand, EBIT fell nominally by 1% to DKK 996 million. EUR. Currency adjusted, however, was minus 5% year-on-year. However, group performance is usually more crucial to success.

Here, Fresenius was able to show a solid growth of 6% year-on-year to EUR 462 million. Adjusted for currency effects, plus is again 3%, which still corresponds to moderate growth overall. If we look more closely at the more detailed comments, we see earnings per. share of EUR 0.83, which is also 3% higher than the previous year’s figure after currency adjustments. It is a strong quarter for a stock that has often stagnated recently.

But the forecast is still stable. Management talks about significant burdens in Medical Care. Among other things, there was a currency-adjusted decline in earnings of 23% in a year-on-year comparison. Nevertheless, the Fresenius Group as a whole continues to expect sales growth of 5% in adjusted revenue and an increase in net income of 3% in constant currency for the current financial year 2022.

Cheap review always cheaper

The Fresenius share was pre-rated cheaply. A price-to-earnings ratio of less than 12, a price-to-sales ratio of less than 0.6 and a dividend of more than 2.5% have certain appeal. Adding stable moderate growth now, despite difficulties, uncertain markets and inflation, can lay the groundwork for a warm value bet.

In fact, the Fresenius Group as a whole delivers very solid numbers despite minor dents. With the quality as a defensive DAX health group and the aristocratic class as a dividend aristocrat, I am of the opinion: Especially when things get tough, such a stock deserves a markedly higher rating.

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Vincent owns shares in Fresenius. The Motley Fool recommends Fresenius.

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