Core Insights - The U.S. medical instrument and medtech sector is stabilizing as it enters 2026, with normalized procedure volumes post-pandemic and a focus on productivity and cost management [1][3] - Companies that can demonstrate operational improvements and earnings visibility are favored in the current investment environment, despite modest top-line growth [1][6] U.S. Macro Trends - Medtech equities are influenced by U.S. macroeconomic factors, particularly the Federal Reserve's interest rate policy, which is currently targeted between 3.5% and 3.75% [3] - Elevated labor and materials inflation rates have moderated, impacting margins more than demand, as companies align pricing and productivity with cost structures [4] Hospital Dynamics - U.S. hospitals are managing tight capital budgets while maintaining steady procedure volumes, benefiting companies with strong service and consumables revenue rather than those reliant on large equipment sales [5] - Staffing shortages are driving hospitals towards automation and efficiency, creating opportunities for device manufacturers offering productivity-enhancing solutions [5] Investment Opportunities in Undervalued Stocks - Undervalued medtech stocks may outperform through earnings recovery and multiple re-rating, as historical periods of uncertainty often compress valuations [6][7] - "Undervalued" stocks are defined as those trading below their historical valuation ranges, with potential for earnings growth through operational leverage and cost-reduction initiatives [7] Company-Specific Insights Fresenius Medical Care (FMS) - FMS is experiencing margin recovery due to cost savings and pricing improvements, with a current P/S F12M of 0.55x, below its 5-year median of 0.63x [10][11] - The company reported a rise in operating margin to 11.7% for Q3 2025, supported by cost savings and disciplined execution, with an expected earnings growth of 9% in 2026 [11][13] Integra LifeSciences (IART) - IART operates in neurosurgery and surgical instruments, currently trading at a P/S F12M of 0.59x, below its 5-year median of 2.14x [14][15] - The company anticipates supply normalization and margin expansion initiatives targeting $25-$30 million in savings, with expected earnings growth of 5.5% in 2026 [15][16] STERIS (STE) - STERIS provides sterilization services and is currently trading at a P/S F12M of 4.23x, slightly above its 5-year median of 3.97x [18][19] - The company reported high-single-digit organic revenue growth and expanded EBIT margin to 23.1%, with an expected earnings growth of 8.6% in 2026 [19][21]

Group 1 - U.S. stock futures are lower, with Dow futures down approximately 100 points [1] - Glaukos Corp reported preliminary FY25 sales of $507 million, leading to a 12.1% drop in shares to $96.97 in pre-market trading [1] Group 2 - Briacell Therapeutics Corp experienced a significant decline of 53.1% to $5.12 after announcing a $30 million public offering [2] - Trip.com Group Ltd shares fell 9.3% to $68.55 amid an investigation by China's SAMR for potential anti-monopoly violations [2] - Pearson PLC shares decreased by 7.2% to $13.36 following a trading update for 2025 [2] - Olema Pharmaceuticals Inc shares declined 5.5% to $26.37 after a previous drop of 3% [2] - Fresenius Medical Care AG shares fell 4.8% to $21.79 [2] - Ambitions Enterprise Management Co LLC shares dropped 4.3% to $11.81 after a significant increase of 134% the previous day [2] - NovaBay Pharmaceuticals Inc shares decreased by 3.8% to $12.55 following a 3% drop on Tuesday [2] - SmartRent Inc shares fell 2.3% to $1.74 in pre-market trading [2]

PresentationIt's my pleasure this morning to introduce Helen Giza, CEO of Fresenius Medical. There will be a Q&A afterwards. Thank you.Helen GizaChair of Management Board & CEO Thank you, David. Good morning, everybody. It's great to be back in San Francisco with you all. The JPMorgan Conference marks an important opportunity each year to reflect on progress as well as to look ahead, and I'm encouraged that the direction we have been setting continues to drive meaningful results. Today, Fresenius Medical Ca ...

Summary of Fresenius Medical Care FY Conference Call Company Overview - **Company**: Fresenius Medical Care (NYSE: FMS) - **Industry**: Kidney care and dialysis services Core Points and Arguments 1. **Strategic Direction**: Fresenius Medical Care is focused on driving profitable growth and long-term value creation, with 2026 marked as a transition year for implementing a new standard of care in the U.S. through large-scale clinic conversions to a new therapy [2][12] 2. **Industry Fundamentals**: The kidney care industry fundamentals remain strong, driven by an aging population and chronic conditions like hypertension and diabetes, which support global demand for kidney replacement therapies [3] 3. **Pharmaceutical Advancements**: New drugs, particularly GLP-1s, show promise in improving cardiovascular health and reducing mortality in chronic kidney disease (CKD) patients, with a reported 23% improvement in mortality for dialysis patients using these drugs [4] 4. **Market Position**: Fresenius Medical Care is a market leader with over 290,000 patients and 3,600 clinics globally, managing over $7 billion in medical costs and holding a 40% market share in in-center hemodialysis (HD) products [5] 5. **Operational Efficiency**: The company has improved its operating margin from 7.9% in 2022 to 10.3% in 2025, supported by the FME25+ transformation program, which is expected to deliver €790 million in sustainable savings by 2025 [8] 6. **Shareholder Returns**: The 2024 dividend payment was the highest in company history, reflecting a 13% CAGR since 2022, alongside a €1 billion share buyback program initiated in 2025 [9] 7. **Debt Management**: The net leverage ratio has been reduced from 3.4 times in 2022 to 2.6 times by Q3 2025, indicating improved financial health [10] 8. **FME Reignite Strategy**: This new strategy aims to enhance core operations, drive growth and innovation, and strengthen company culture, with aspirations for mid-teen margins by 2030 [12][13] Additional Important Insights 1. **Patient Care Focus**: The company is addressing patient outflow issues by enhancing treatment adherence and reducing missed treatments, which have been exacerbated post-COVID [29][30] 2. **HDF Therapy Rollout**: The introduction of high-volume HDF therapy is expected to significantly improve patient outcomes, with a target to convert 20% of machines in clinics by 2026 [19][20] 3. **Market Dynamics**: The company is navigating challenges such as elevated mortality rates and missed treatments, while also adapting to changes in ACA subsidies that may impact patient behavior [26][35] 4. **Innovation Pipeline**: The 5008X machine rollout is a key innovation, with production capacity of 15,000 machines per year, aimed at enhancing patient care and operational efficiency [17][45] 5. **Long-term Growth Outlook**: The company anticipates robust cash flow generation, projecting operating cash flow above €2.5 billion annually through 2030, supporting its growth and shareholder return strategies [23][27] This summary encapsulates the key points discussed during the Fresenius Medical Care FY Conference, highlighting the company's strategic initiatives, market position, and outlook for future growth.

Core Insights - Investors in the Medical - Instruments sector may consider Fresenius (FMS) or Masimo (MASI) as potential undervalued stocks [1] Valuation Metrics - Fresenius has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Masimo, which has a Zacks Rank of 4 (Sell) [3] - FMS has a forward P/E ratio of 9.26, significantly lower than MASI's forward P/E of 23.98, suggesting that FMS may be undervalued [5] - The PEG ratio for FMS is 0.73, while MASI's PEG ratio is 1.41, indicating that FMS has a better valuation relative to its expected earnings growth [5] - FMS has a P/B ratio of 0.82, contrasting with MASI's P/B of 9.15, further supporting the notion that FMS is undervalued [6] - Based on these metrics, FMS has a Value grade of B, while MASI has a Value grade of C, indicating a stronger valuation profile for FMS [6] Earnings Outlook - FMS is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

BAD HOMBURG, Germany, Jan. 9, 2026 /PRNewswire/ -- Fresenius Medical Care (FME), the world's leading provider of products and services for individuals with renal disease, will accelerate its share buyback program and start the repurchase of the second tranche. The program – presented during the company's Capital Markets Day on June 17, 2025 – has a total volume of EUR 1 billion. Under the second tranche, the company plans to repurchase its own shares for a total amount of around EUR 415 million from January ...

Core Viewpoint - The appointment of Dr. Charles Hugh-Jones as Global Chief Medical Officer of Fresenius Medical Care signals a shift in the dialysis and kidney care industry, where competition is moving from "equipment performance" to "medical systems and long-term efficacy management" [2]. Group 1: Fresenius Medical Care's Role - Fresenius Medical Care is not just a device manufacturer but provides a comprehensive life support system for chronic kidney disease patients, covering dialysis equipment, consumables, and service networks [3][4]. - The company's responsibilities extend beyond merely selling equipment to hospitals; it must maintain high stability in long-term safety, treatment consistency, and care quality [4]. Group 2: Transition from Maddux to Hugh-Jones - Dr. Franklin W. Maddux, who served as Global Chief Medical Officer since 2020, oversaw a period where the dialysis industry increasingly emphasized real-world evidence, long-term follow-up, and clinical quality management [5][7]. - Dr. Hugh-Jones brings a diverse background from Allergan, Pfizer, and Sanofi, aligning with a trend where chronic disease management is integrating broader medical strategies and data systems [9]. Group 3: Why "Medical Leadership" is Being Highlighted - The technological ceiling for dialysis devices is approaching, with differentiation increasingly based on long-term complication management, patient quality of life, and systemic care capabilities rather than single-treatment outcomes [11]. - Regulatory and payment systems are demanding clearer evidence of "clinical value," transforming the medical department from a compliance supporter to a builder of evidence systems [12]. - Data and services are reshaping the boundaries of device companies, pushing dialysis from "standardized device treatment" to "continuous medical services," necessitating deeper integration of medical decision-making into product and system design [13][14]. Group 4: Implications for the Medical Device Industry - The appointment of Hugh-Jones reflects a broader industry trend where medical functions are gaining strategic importance, especially in chronic disease management and long-term life support systems [15]. - Companies are increasingly recognizing that when product lifecycles span years, medical judgment becomes a critical component of product competitiveness [16].

Core Insights - The article discusses the expertise of a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1] Group 1: Analyst Background - The analyst is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] - The focus is on identifying reasonably valued stock ideas within these markets [1] Group 2: Investment Position - The analyst holds a beneficial long position in the shares of FMS and FSNUY, either through stock ownership, options, or other derivatives [1]

Core Insights - Fresenius Medical Care AG & Co. (FMS) reported third-quarter 2025 adjusted earnings per share (EPS) of 64 cents, exceeding the Zacks Consensus Estimate by 8.47% and reflecting a year-over-year increase of 35.8% [1][7] - Revenues reached $5.71 billion (EUR 4,885 million), surpassing the Zacks Consensus Estimate by 4.3%, with a year-over-year growth of 2.6% and an organic growth of 10% [2][7] Revenue Details - The revenue growth was impacted by divestitures as part of the portfolio optimization plan, which negatively affected revenue by EUR 50 million in Q3 [3] - Full-year revenue is expected to reflect a 100 basis points negative impact due to the portfolio optimization plan in 2024 [3] Segment Performance - Care Delivery segment revenues decreased by 2% year-over-year but increased by 3.6% at constant currency (cc) and 6% organically [5] - Care Enablement segment revenues remained flat year-over-year but grew by 5% at cc and organically [8] - Value-Based Care segment revenues surged by 34% year-over-year, with a 42% increase at cc and organically, driven by a higher number of member months due to contract expansion [9] Margin Analysis - Gross profit improved by 8.4% year-over-year, with gross margin expanding by 130 basis points to 25.4% [10] - Adjusted operating income increased by 22.4% from the prior-year quarter, with the adjusted operating margin expanding by 180 basis points to 11.7% [10] Future Guidance - For 2025, Fresenius Medical expects positive revenue growth at a low-single-digit percent rate compared to the prior year and operating income growth in the high-teens to high-twenties percent range [11] Strategic Initiatives - The FME25 transformation program delivered EUR 47 million in additional sustainable savings during Q3, with a target of around EUR 180 million in additional annual savings by the end of 2027 [13] - Continued divestment of non-core and dilutive assets is seen as a positive move to focus on core categories and enhance cash resources [14]

Financial Data and Key Metrics Changes - The company achieved strong organic revenue growth of 10% in Q3 2025, with all three operating segments contributing positively [7][26] - Operating income growth accelerated to 28%, resulting in an operating income margin expansion from 9.9% to 11.7% [8][27] - Operating income, excluding special items, increased by 28% on a constant currency basis, with special items negatively affecting operating income by around EUR 100 million [27][28] Business Line Data and Key Metrics Changes - Care Delivery realized organic revenue growth of 6%, with U.S. organic growth driven by favorable rate and payer mix development [30][32] - Value Based Care segment saw a significant 42% organic growth, primarily due to a high number of member months and a change in revenue recognition [34] - Care Enablement achieved a 5% organic growth, supported by solid volume growth and positive pricing momentum [35] Market Data and Key Metrics Changes - In the U.S., same market treatment growth was slightly positive at 0.1%, reflecting the carryover effect from elevated mortality due to a severe flu season [18][32] - Internationally, same market treatment growth increased to 1.2% [18] Company Strategy and Development Direction - The company is focused on its SME Reignite strategy to drive growth and innovation, enhancing clinical outcomes and patient safety [12][16] - The initial share buyback of EUR 1 billion aligns with the commitment to reignite value creation for shareholders [8] - The company is preparing for the rollout of high volume HDF treatments, which is expected to set a new standard of care in the U.S. [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance, with expectations for continued improvement in underlying business despite a challenging environment [41][43] - The company anticipates further acceleration in earnings growth and margin expansion in Q4, supported by positive momentum from the FME25 plus program [42][43] - Management acknowledged the need to navigate various uncertainties, including potential impacts from Medicare Advantage trends and ACA tax subsidies [44][63] Other Important Information - The company reported a total investment of EUR 188 million in share repurchases by October 31, 2025 [10][38] - Operating cash flow increased by 8% year-to-date, despite a decline in Q3 compared to an inflated prior year base [37] Q&A Session Summary Question: Guidance on margin expectations and treatment adherence - Management expects continuous improvement across all segments, with strong support from Care Delivery [51] - Elevated mortality levels are still a concern, but improvements in missed treatments are being observed, which should help with overall treatment volume and mortality [52][54] Question: Phosphate binders and Medicare Advantage trends - The company now expects a total benefit of EUR 180 million from phosphate binders for the year, up from the previous guidance of EUR 100 million [58][60] - Current Medicare Advantage enrollment remains steady, with no significant impact anticipated from recent market changes [62][64] Question: EBIT guidance and treatment growth - The EBIT guidance remains wide due to various moving parts, but management is optimistic about achieving the top end of the range [68] - Improvements in admissions and mistreatments are being noted, with expectations for treatment growth to normalize as mortality levels decrease [70][74] Question: HDF rollout and its impact - The rollout of HDF is progressing well, with positive feedback from nephrologists and plans for further installations [82] - The company anticipates that HDF will start to positively impact U.S. treatment growth as patients begin to receive this treatment [102]