FMC CORP (FMC) Stock Fundamental Analysis
NYSE:FMC - New York Stock Exchange, Inc. - US3024913036 - Common Stock - Currency: USD
FMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. FMC has an average financial health and profitability rating. FMC is not valued too expensively and it also shows a decent growth rate. FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FMC had positive earnings in the past year.
FMC had a positive 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 a decent Return On Assets value of 2.77%, FMC is doing good in the industry, outperforming 62.35% of the companies in the same industry.
The Return On Equity of FMC (7.46%) is better than 68.24% of its industry peers.
The Return On Invested Capital of FMC (5.04%) is comparable to the rest of the industry.
FMC had an Average Return On Invested Capital over the past 3 years of 7.90%. This 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
Looking at the Profit Margin, with a value of 7.93%, FMC is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
FMC's Profit Margin has declined in the last couple of years.
FMC has a Operating Margin of 14.56%. This is in the better half of the industry: FMC outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of FMC has declined.
With an excellent Gross Margin value of 39.47%, FMC belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMC is destroying value.
FMC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FMC has less shares outstanding
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.
FMC has a Altman-Z score (1.92) which is in line with its industry peers.
The Debt to FCF ratio of FMC is 15.03, which is on the high side as it means it would take FMC, 15.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.03, FMC is in line with its industry, outperforming 56.47% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that FMC is somewhat dependend on debt financing.
FMC has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: FMC underperforms 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
WACC9.1%
2.3 Liquidity
FMC has a Current Ratio of 1.54. 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 worse Current ratio (1.54) than 65.88% of its industry peers.
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
FMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.82%, which is quite impressive.
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 1.45%.
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-0.59%
EPS Next 2Y7.84%
EPS Next 3Y9.78%
EPS Next 5Y13.6%
Revenue Next Year-3.56%
Revenue Next 2Y1.27%
Revenue Next 3Y2.85%
Revenue Next 5Y4.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.44, FMC is valued correctly.
Based on the Price/Earnings ratio, FMC is valued a bit cheaper than the industry average as 74.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.28. FMC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.96, the valuation of FMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FMC is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FMC is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.75 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.84%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 5.38%, which is a nice return.
Compared to an average industry Dividend Yield of 3.69, FMC pays a better dividend. On top of this FMC pays more dividend than 85.88% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
5.2 History
On average, the dividend of FMC grows each year by 28.29%, 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)28.29%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
The dividend of FMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.84%
EPS Next 3Y9.78%
44.23
-0.22 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.48%
Inst Owner Change-3.16%
Ins Owners0.44%
Ins Owner Change15.6%
Market Cap5.52B
Analysts68
Price Target45.85 (3.66%)
Short Float %5.48%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)-7.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.35%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 10.96 | ||
| P/S | 1.34 | ||
| P/FCF | 20.75 | ||
| P/OCF | 19.93 | ||
| P/B | 1.26 | ||
| P/tB | 11.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.29
EY7.44%
EPS(NY)4.04
Fwd EY9.12%
FCF(TTM)2.13
FCFY4.82%
OCF(TTM)2.22
OCFY5.02%
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
WACC9.1%
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-0.59%
EPS Next 2Y7.84%
EPS Next 3Y9.78%
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-3.56%
Revenue Next 2Y1.27%
Revenue Next 3Y2.85%
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%