FMC CORP (FMC) Stock Fundamental Analysis
NYSE:FMC - New York Stock Exchange, Inc. - US3024913036 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to FMC. FMC was compared to 85 industry peers in the Chemicals industry. While FMC is still in line with the averages on profitability rating, there are concerns on its financial health. FMC has a correct valuation and a medium growth rate. FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FMC was profitable.
In the past year FMC had a positive cash flow from operations.
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 Return On Assets (0.81%) which is in line with its industry peers.
With a Return On Equity value of 2.25%, FMC perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
The Return On Invested Capital of FMC (5.01%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMC is in line with the industry average of 6.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.25% | ||
| ROIC | 5.01% |
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's Profit Margin of 2.40% is in line compared to the rest of the industry. FMC outperforms 57.65% of its industry peers.
In the last couple of years the Profit Margin of FMC has declined.
With a decent Operating Margin value of 14.64%, FMC is doing good in the industry, outperforming 77.65% of the companies in the same industry.
In the last couple of years the Operating Margin of FMC has declined.
FMC has a better Gross Margin (39.55%) than 82.35% of its industry peers.
FMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | 2.4% | ||
| GM | 39.55% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMC is destroying value.
Compared to 1 year ago, FMC has about the same amount of shares outstanding.
FMC has less shares outstanding than it did 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 1.76. This is a bad value and indicates that FMC is not financially healthy and even has some risk of bankruptcy.
FMC has a Altman-Z score (1.76) which is in line with its industry peers.
FMC has a debt to FCF ratio of 261.84. This is a negative value and a sign of low solvency as FMC would need 261.84 years to pay back of all of its debts.
FMC's Debt to FCF ratio of 261.84 is in line compared to the rest of the industry. FMC outperforms 44.71% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that FMC is somewhat dependend on debt financing.
FMC has a Debt to Equity ratio of 0.93. This is in the lower half of the industry: FMC underperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 261.84 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.54
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.53 indicates that FMC should not have too much problems paying its short term obligations.
The Current ratio of FMC (1.53) is worse than 65.88% of its industry peers.
A Quick Ratio of 1.14 indicates that FMC should not have too much problems paying its short term obligations.
The Quick ratio of FMC (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.00% over the past year.
The earnings per share for FMC have been decreasing by -10.61% on average. This is quite bad
FMC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.16%.
The Revenue has been decreasing by -1.63% on average over the past years.
EPS 1Y (TTM)34%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%9.52%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%1.17%
3.2 Future
The Earnings Per Share is expected to grow by 13.60% on average over the next years. This is quite good.
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 Y0.17%
EPS Next 2Y8.19%
EPS Next 3Y10.02%
EPS Next 5Y13.6%
Revenue Next Year-3.31%
Revenue Next 2Y1.43%
Revenue Next 3Y2.97%
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
With a Price/Earnings ratio of 11.21, the valuation of FMC can be described as very reasonable.
FMC's Price/Earnings ratio is rather cheap when compared to the industry. FMC is cheaper than 87.06% of the companies in the same industry.
FMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.11.
A Price/Forward Earnings ratio of 9.24 indicates a reasonable valuation of FMC.
Based on the Price/Forward Earnings ratio, FMC is valued cheaper than 87.06% of the companies 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 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
FMC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 294.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)64.64
PEG (5Y)N/A
EPS Next 2Y8.19%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 6.36%, which is a nice return.
Compared to an average industry Dividend Yield of 3.76, FMC pays a better dividend. On top of this FMC pays more dividend than 88.24% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
The dividend of FMC is nicely growing with an annual growth rate of 28.29%!
FMC has been paying a dividend for at least 10 years, so it has a reliable track record.
FMC has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y8.19%
EPS Next 3Y10.02%
37.54
+2.39 (+6.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.49%
Inst Owner Change-1.82%
Ins Owners0.44%
Ins Owner Change15.63%
Market Cap4.69B
Analysts68
Price Target47.51 (26.56%)
Short Float %5.25%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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)49.56%
Min EPS beat(2)10.96%
Max EPS beat(2)88.17%
EPS beat(4)4
Avg EPS beat(4)34.86%
Min EPS beat(4)10.67%
Max EPS beat(4)88.17%
EPS beat(8)6
Avg EPS beat(8)17.18%
EPS beat(12)9
Avg EPS beat(12)10.71%
EPS beat(16)13
Avg EPS beat(16)9.55%
Revenue beat(2)1
Avg Revenue beat(2)2.18%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)4.42%
Revenue beat(4)2
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-7.88%
Max Revenue beat(4)4.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.14%
Revenue beat(12)4
Avg Revenue beat(12)-2.21%
Revenue beat(16)8
Avg Revenue beat(16)-0.73%
PT rev (1m)3.62%
PT rev (3m)2.23%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)0%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 9.24 | ||
| P/S | 1.13 | ||
| P/FCF | 294.91 | ||
| P/OCF | 146.99 | ||
| P/B | 1.07 | ||
| P/tB | 10.01 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.35
EY8.92%
EPS(NY)4.06
Fwd EY10.82%
FCF(TTM)0.13
FCFY0.34%
OCF(TTM)0.26
OCFY0.68%
SpS33.08
BVpS35.2
TBVpS3.75
PEG (NY)64.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.25% | ||
| ROCE | 6.93% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 9.25% | ||
| OM | 14.64% | ||
| PM (TTM) | 2.4% | ||
| GM | 39.55% | ||
| FCFM | 0.38% |
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-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 261.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 16.06% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.76 |
F-Score4
WACC9.3%
ROIC/WACC0.54
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)34%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%9.52%
EPS Next Y0.17%
EPS Next 2Y8.19%
EPS Next 3Y10.02%
EPS Next 5Y13.6%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%1.17%
Revenue Next Year-3.31%
Revenue Next 2Y1.43%
Revenue Next 3Y2.97%
Revenue Next 5Y4.15%
EBIT growth 1Y20.38%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year28.16%
EBIT Next 3Y14.96%
EBIT Next 5Y15.09%
FCF growth 1Y-87.26%
FCF growth 3Y-1.74%
FCF growth 5Y14.13%
OCF growth 1Y-88.15%
OCF growth 3Y-6.47%
OCF growth 5Y6.56%