FMC CORP (FMC)
US3024913036 - Common Stock
Taking everything into account, FMC scores 5 out of 10 in our fundamental rating. FMC was compared to 83 industry peers in the Chemicals industry. While FMC has a great profitability rating, there are quite some concerns on its financial health. FMC is not valued too expensively and it also shows a decent growth rate. Finally FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FMC had positive earnings in the past year.
In the past year FMC had a positive cash flow from operations.
FMC had positive earnings in each of the past 5 years.
FMC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FMC has a Return On Assets of 9.35%. This is amongst the best in the industry. FMC outperforms 91.57% of its industry peers.
Looking at the Return On Equity, with a value of 25.97%, FMC belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.31%, FMC is in line with its industry, outperforming 51.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMC is above the industry average of 6.66%.
The 3 year average ROIC (10.55%) for FMC is well above the current ROIC(4.31%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 25.97% | ||
| ROIC | 4.31% |
ROA(3y)8.17%
ROA(5y)6.95%
ROE(3y)25.06%
ROE(5y)22.51%
ROIC(3y)10.55%
ROIC(5y)10.96%
1.3 Margins
FMC has a Profit Margin of 27.58%. This is amongst the best in the industry. FMC outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of FMC has grown nicely.
FMC has a better Operating Margin (12.01%) than 68.67% of its industry peers.
FMC's Operating Margin has declined in the last couple of years.
FMC has a better Gross Margin (39.14%) than 80.72% of its industry peers.
In the last couple of years the Gross Margin of FMC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.01% | ||
| PM (TTM) | 27.58% | ||
| GM | 39.14% |
OM growth 3Y-12.35%
OM growth 5Y-8.33%
PM growth 3Y35.36%
PM growth 5Y20.31%
GM growth 3Y-2.63%
GM growth 5Y-2.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FMC is still creating some value.
Compared to 1 year ago, FMC has less shares outstanding
FMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.97 indicates that FMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.97, FMC perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
FMC has a debt to FCF ratio of 21.11. This is a negative value and a sign of low solvency as FMC would need 21.11 years to pay back of all of its debts.
FMC has a Debt to FCF ratio (21.11) which is comparable to the rest of the industry.
FMC has a Debt/Equity ratio of 0.98. This is a neutral value indicating FMC is somewhat dependend on debt financing.
FMC has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: FMC underperforms 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.11 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.54
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FMC should not have too much problems paying its short term obligations.
FMC has a worse Current ratio (1.46) than 79.52% of its industry peers.
FMC has a Quick Ratio of 1.02. This is a normal value and indicates that FMC is financially healthy and should not expect problems in meeting its short term obligations.
FMC has a Quick ratio of 1.02. This is in the lower half of the industry: FMC underperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
FMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.53%.
FMC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.68% yearly.
The Revenue for FMC has decreased by -29.94% in the past year. This is quite bad
FMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)-67.53%
EPS 3Y-15.21%
EPS 5Y-9.68%
EPS Q2Q%-79.66%
Revenue 1Y (TTM)-29.94%
Revenue growth 3Y-1.13%
Revenue growth 5Y0.92%
Sales Q2Q%-31.71%
3.2 Future
The Earnings Per Share is expected to grow by 13.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.64% on average over the next years.
EPS Next Y0.37%
EPS Next 2Y16.05%
EPS Next 3Y15.58%
EPS Next 5Y13.6%
Revenue Next Year-1.06%
Revenue Next 2Y3.03%
Revenue Next 3Y3.69%
Revenue Next 5Y4.64%
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
With a Price/Earnings ratio of 25.15, FMC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FMC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.41, FMC is valued at the same level.
The Price/Forward Earnings ratio is 11.71, which indicates a very decent valuation of FMC.
FMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FMC is cheaper than 68.67% of the companies in the same industry.
FMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FMC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.22 | ||
| EV/EBITDA | 14.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FMC has a very decent profitability rating, which may justify a higher PE ratio.
FMC's earnings are expected to grow with 15.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)67.73
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3Y15.58%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, FMC pays a better dividend. On top of this FMC pays more dividend than 83.13% of the companies listed in the same industry.
FMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
On average, the dividend of FMC grows each year by 28.23%, which is quite nice.
FMC has been paying a dividend for at least 10 years, so it has 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)28.23%
Div Incr Years6
Div Non Decr Years17
5.3 Sustainability
25.93% of the earnings are spent on dividend by FMC. This is a low number and sustainable payout ratio.
FMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.93%
EPS Next 2Y16.05%
EPS Next 3Y15.58%
FMC CORP
NYSE:FMC (7/26/2024, 7:04:00 PM)
After market: 59.85 +0.25 (+0.42%)59.6
+0.66 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 11.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)67.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 25.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.01% | ||
| PM (TTM) | 27.58% | ||
| GM | 39.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-67.53%
EPS 3Y-15.21%
EPS 5Y
EPS Q2Q%
EPS Next Y0.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-29.94%
Revenue growth 3Y-1.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y