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Fresenius SE & Co. KGaA (FRA:FRE): The Best Of Both Worlds

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I've been keeping an eye on Fresenius SE & Co. KGaA (FRA:FRE) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FRE has a lot to offer. Basically, it is a notable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Fresenius SE KGaA here.

Established dividend payer and good value

FRE's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of FRE's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, FRE's share price is trading below the group's average. This further reaffirms that FRE is potentially undervalued.

DB:FRE Intrinsic value, June 26th 2019
DB:FRE Intrinsic value, June 26th 2019

Income investors would also be happy to know that FRE is a great dividend company, with a current yield standing at 1.7%. FRE has also been regularly increasing its dividend payments to shareholders over the past decade.

DB:FRE Historical Dividend Yield, June 26th 2019
DB:FRE Historical Dividend Yield, June 26th 2019

Next Steps:

For Fresenius SE KGaA, there are three relevant aspects you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for FRE’s future growth? Take a look at our free research report of analyst consensus for FRE’s outlook.

  2. Historical Performance: What has FRE's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FRE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.