FMC CORP (FMC)

US3024913036 - Common Stock

58.145  +0.33 (+0.56%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FMC. FMC was compared to 85 industry peers in the Chemicals industry. FMC has an excellent profitability rating, but there are concerns on its financial health. FMC has a decent growth rate and is not valued too expensively. FMC also has an excellent dividend rating.



8

1. Profitability

1.1 Basic Checks

In the past year FMC was profitable.
FMC had a negative operating cash flow in the past year.
In the past 5 years FMC has always been profitable.
FMC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 11.05%, FMC belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
FMC has a Return On Equity of 29.88%. This is amongst the best in the industry. FMC outperforms 95.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.29%, FMC is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FMC is above the industry average of 7.47%.
The last Return On Invested Capital (6.29%) for FMC is well below the 3 year average (10.55%), which needs to be investigated, but indicates that FMC had better years and this may not be a problem.
Industry RankSector Rank
ROA 11.05%
ROE 29.88%
ROIC 6.29%
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's Profit Margin of 29.38% is amongst the best of the industry. FMC outperforms 97.65% of its industry peers.
In the last couple of years the Profit Margin of FMC has grown nicely.
FMC has a Operating Margin of 15.43%. This is amongst the best in the industry. FMC outperforms 81.18% of its industry peers.
FMC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 40.81%, FMC belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
In the last couple of years the Gross Margin of FMC has declined.
Industry RankSector Rank
OM 15.43%
PM (TTM) 29.38%
GM 40.81%
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%

3

2. Health

2.1 Basic Checks

FMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FMC has less shares outstanding
Compared to 5 years ago, FMC has less shares outstanding
FMC has a worse debt/assets ratio than last year.

2.2 Solvency

FMC has an Altman-Z score of 2.09. 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.
With a Altman-Z score value of 2.09, FMC perfoms like the industry average, outperforming 51.76% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that FMC is somewhat dependend on debt financing.
FMC has a worse Debt to Equity ratio (0.88) than 62.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF N/A
Altman-Z 2.09
ROIC/WACC0.75
WACC8.37%

2.3 Liquidity

A Current Ratio of 1.52 indicates that FMC should not have too much problems paying its short term obligations.
The Current ratio of FMC (1.52) is worse than 75.29% of its industry peers.
FMC has a Quick Ratio of 1.01. This is a normal value and indicates that FMC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.01, FMC is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.01

4

3. Growth

3.1 Past

The earnings per share for FMC have decreased strongly by -48.99% in the last year.
Measured over the past years, FMC shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.68% on average per year.
The Revenue for FMC has decreased by -22.67% in the past year. This is quite bad
Measured over the past years, FMC shows a small growth in Revenue. The Revenue has been growing by 0.92% on average per year.
EPS 1Y (TTM)-48.99%
EPS 3Y-15.21%
EPS 5Y-9.68%
EPS growth Q2Q-54.85%
Revenue 1Y (TTM)-22.67%
Revenue growth 3Y-1.13%
Revenue growth 5Y0.92%
Revenue growth Q2Q-29.34%

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 13.11% yearly.
Based on estimates for the next years, FMC will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y2.11%
EPS Next 2Y16.34%
EPS Next 3Y16.88%
EPS Next 5Y13.11%
Revenue Next Year-0.61%
Revenue Next 2Y3.19%
Revenue Next 3Y4.2%
Revenue Next 5Y4.2%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.38 indicates a correct valuation of FMC.
Based on the Price/Earnings ratio, FMC is valued a bit cheaper than the industry average as 68.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.75, FMC is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.06, which indicates a correct valuation of FMC.
FMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FMC is cheaper than 69.41% of the companies in the same industry.
FMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.23.
Industry RankSector Rank
PE 15.38
Fwd PE 15.06

4.2 Price Multiples

FMC's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.45

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 an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FMC's earnings are expected to grow with 16.88% in the coming years.
PEG (NY)7.28
PEG (5Y)N/A
EPS Next 2Y16.34%
EPS Next 3Y16.88%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.07%, FMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, FMC pays a better dividend. On top of this FMC pays more dividend than 87.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, FMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.07%

5.2 History

The dividend of FMC is nicely growing with an annual growth rate of 28.23%!
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 Years11

5.3 Sustainability

22.04% of the earnings are spent on dividend by FMC. This is a low number and sustainable payout ratio.
The dividend of FMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.04%
EPS Next 2Y16.34%
EPS Next 3Y16.88%

FMC CORP

NYSE:FMC (4/22/2024, 2:33:06 PM)

58.145

+0.33 (+0.56%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.26B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.07%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 15.38
Fwd PE 15.06
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)7.28
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 11.05%
ROE 29.88%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.43%
PM (TTM) 29.38%
GM 40.81%
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 Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.52
Quick Ratio 1.01
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)
Growth
EPS 1Y (TTM)-48.99%
EPS 3Y-15.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-22.67%
Revenue growth 3Y-1.13%
Revenue growth 5Y
Revenue growth 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