FMC CORP (FMC) Stock Fundamental Analysis
NYSE:FMC - New York Stock Exchange, Inc. - US3024913036 - Common Stock - Currency: USD
Taking everything into account, FMC scores 5 out of 10 in our fundamental rating. FMC was compared to 85 industry peers in the Chemicals industry. FMC has only an average score on both its financial health and profitability. FMC has a correct valuation and a medium growth rate. Finally FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FMC was profitable.
FMC had a positive operating cash flow in the past year.
Each year in the past 5 years FMC has been profitable.
FMC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FMC has a better Return On Assets (2.77%) than 62.35% of its industry peers.
FMC's Return On Equity of 7.46% is fine compared to the rest of the industry. FMC outperforms 68.24% of its industry peers.
With a Return On Invested Capital value of 5.04%, FMC perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FMC is in line with the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.46% | ||
| ROIC | 5.04% |
ROA(3y)6.85%
ROA(5y)6.57%
ROE(3y)19.73%
ROE(5y)20.26%
ROIC(3y)7.9%
ROIC(5y)9.24%
1.3 Margins
FMC has a better Profit Margin (7.93%) than 78.82% of its industry peers.
In the last couple of years the Profit Margin of FMC has declined.
Looking at the Operating Margin, with a value of 14.56%, FMC is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
FMC's Operating Margin has declined in the last couple of years.
FMC has a Gross Margin of 39.47%. This is amongst the best in the industry. FMC outperforms 82.35% of its industry peers.
FMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 7.93% | ||
| GM | 39.47% |
OM growth 3Y-11.44%
OM growth 5Y-6.44%
PM growth 3Y-18.08%
PM growth 5Y-4.96%
GM growth 3Y-3.37%
GM growth 5Y-2.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FMC is destroying value.
The number of shares outstanding for FMC remains at a similar level compared to 1 year ago.
The number of shares outstanding for FMC has been reduced compared to 5 years ago.
The debt/assets ratio for FMC has been reduced compared to a year ago.
2.2 Solvency
FMC has an Altman-Z score of 1.92. This is not the best score and indicates that FMC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, FMC is in line with its industry, outperforming 51.76% of the companies in the same industry.
FMC has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as FMC would need 15.03 years to pay back of all of its debts.
FMC has a Debt to FCF ratio (15.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.89 indicates that FMC is somewhat dependend on debt financing.
FMC's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. FMC is outperformed by 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.55
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.54 indicates that FMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.54, FMC is doing worse than 65.88% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that FMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, FMC is in line with its industry, outperforming 45.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.82% over the past year.
Measured over the past years, FMC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.61% on average per year.
Looking at the last year, FMC shows a small growth in Revenue. The Revenue has grown by 1.45% in the last year.
FMC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.63% yearly.
EPS 1Y (TTM)38.82%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%-50%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%-13.79%
3.2 Future
FMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
Based on estimates for the next years, FMC will show a small growth in Revenue. The Revenue will grow by 4.15% on average per year.
EPS Next Y-0.3%
EPS Next 2Y7.74%
EPS Next 3Y9.73%
EPS Next 5Y13.6%
Revenue Next Year-3.65%
Revenue Next 2Y1.23%
Revenue Next 3Y2.75%
Revenue Next 5Y4.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.39, the valuation of FMC can be described as correct.
74.12% of the companies in the same industry are more expensive than FMC, based on the Price/Earnings ratio.
FMC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.93, which indicates a very decent valuation of FMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMC indicates a somewhat cheap valuation: FMC is cheaper than 69.41% of the companies listed in the same industry.
FMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FMC is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.74%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, FMC is a good candidate for dividend investing.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.74. FMC pays more dividend than 85.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
On average, the dividend of FMC grows each year by 28.29%, which is quite nice.
FMC has paid a dividend for at least 10 years, which is a reliable track record.
FMC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)28.29%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
FMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.74%
EPS Next 3Y9.73%
44.04
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change-3.16%
Ins Owners0.39%
Ins Owner Change15.75%
Market Cap5.50B
Analysts68
Price Target45.85 (4.11%)
Short Float %4.92%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend2.33
Dividend Growth(5Y)28.29%
DPN/A
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.42%
Min EPS beat(2)10.67%
Max EPS beat(2)88.17%
EPS beat(4)4
Avg EPS beat(4)35.27%
Min EPS beat(4)10.67%
Max EPS beat(4)88.17%
EPS beat(8)5
Avg EPS beat(8)13.46%
EPS beat(12)9
Avg EPS beat(12)9.91%
EPS beat(16)13
Avg EPS beat(16)8.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-7.88%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-7.88%
Max Revenue beat(4)1.85%
Revenue beat(8)1
Avg Revenue beat(8)-3.85%
Revenue beat(12)4
Avg Revenue beat(12)-1.92%
Revenue beat(16)8
Avg Revenue beat(16)-1.01%
PT rev (1m)-1.34%
PT rev (3m)-10.01%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-15.74%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 10.93 | ||
| P/S | 1.34 | ||
| P/FCF | 20.66 | ||
| P/OCF | 19.84 | ||
| P/B | 1.26 | ||
| P/tB | 11 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.29
EY7.47%
EPS(NY)4.03
Fwd EY9.15%
FCF(TTM)2.13
FCFY4.84%
OCF(TTM)2.22
OCFY5.04%
SpS32.98
BVpS35.08
TBVpS4.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.46% | ||
| ROCE | 7.06% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 9.12% | ||
| OM | 14.56% | ||
| PM (TTM) | 7.93% | ||
| GM | 39.47% | ||
| FCFM | 6.46% |
ROA(3y)6.85%
ROA(5y)6.57%
ROE(3y)19.73%
ROE(5y)20.26%
ROIC(3y)7.9%
ROIC(5y)9.24%
ROICexc(3y)8.37%
ROICexc(5y)9.87%
ROICexgc(3y)17.93%
ROICexgc(5y)22.19%
ROCE(3y)10.56%
ROCE(5y)12.26%
ROICexcg growth 3Y-26.4%
ROICexcg growth 5Y-15.61%
ROICexc growth 3Y-20.96%
ROICexc growth 5Y-11.11%
OM growth 3Y-11.44%
OM growth 5Y-6.44%
PM growth 3Y-18.08%
PM growth 5Y-4.96%
GM growth 3Y-3.37%
GM growth 5Y-2.99%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.03 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.51% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.92 |
F-Score5
WACC9.2%
ROIC/WACC0.55
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.82%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%-50%
EPS Next Y-0.3%
EPS Next 2Y7.74%
EPS Next 3Y9.73%
EPS Next 5Y13.6%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%-13.79%
Revenue Next Year-3.65%
Revenue Next 2Y1.23%
Revenue Next 3Y2.75%
Revenue Next 5Y4.15%
EBIT growth 1Y22.97%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year26.78%
EBIT Next 3Y14.67%
EBIT Next 5Y15.09%
FCF growth 1Y41.35%
FCF growth 3Y-1.74%
FCF growth 5Y14.13%
OCF growth 1Y-15.31%
OCF growth 3Y-6.47%
OCF growth 5Y6.56%