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 an average financial health and profitability rating. FMC has a correct valuation and a medium 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.
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
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.
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.
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 6.83%.
| 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
The Profit Margin of FMC (7.93%) is better than 78.82% of its industry peers.
In the last couple of years the Profit Margin of FMC has declined.
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.
FMC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.47%, FMC belongs to the top 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
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.
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
An Altman-Z score of 1.92 indicates that FMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
FMC has a Altman-Z score (1.92) which is comparable to the rest of the 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.
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.
FMC has a Debt/Equity ratio of 0.89. This is a neutral value indicating FMC is somewhat dependend on debt financing.
The Debt to Equity ratio of FMC (0.89) is worse than 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
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.54 indicates that FMC should not have too much problems paying its short term obligations.
The Current ratio of FMC (1.54) is worse than 65.88% of its industry peers.
FMC has a Quick Ratio of 1.12. This is a normal value and indicates that FMC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FMC (1.12) is comparable to the rest of the 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.
The earnings per share for FMC have been decreasing by -10.61% on average. This is quite bad
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.
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y0.17%
EPS Next 2Y8.19%
EPS Next 3Y10.02%
EPS Next 5Y13.6%
Revenue Next Year-3.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.94%
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.
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
FMC is valuated correctly with a Price/Earnings ratio of 13.34.
76.47% of the companies in the same industry are more expensive than FMC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.69. FMC is valued rather cheaply when compared to this.
FMC is valuated reasonably with a Price/Forward Earnings ratio of 10.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMC indicates a somewhat cheap valuation: FMC is cheaper than 72.94% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FMC to the average of the S&P500 Index (37.36), we can say FMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
71.76% of the companies in the same industry are more expensive than FMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FMC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)76.96
PEG (5Y)N/A
EPS Next 2Y8.19%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 5.49%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, FMC pays a better dividend. On top of this FMC pays more dividend than 87.06% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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 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%
43.9
+0.54 (+1.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.48%
Inst Owner Change-0.38%
Ins Owners0.44%
Ins Owner Change15.48%
Market Cap5.48B
Analysts68
Price Target47.74 (8.75%)
Short Float %5.78%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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)4.12%
PT rev (3m)-1.6%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-18.65%
EPS NY rev (1m)0.77%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 10.81 | ||
| P/S | 1.33 | ||
| P/FCF | 20.59 | ||
| P/OCF | 19.78 | ||
| P/B | 1.25 | ||
| P/tB | 10.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.29
EY7.49%
EPS(NY)4.06
Fwd EY9.25%
FCF(TTM)2.13
FCFY4.86%
OCF(TTM)2.22
OCFY5.06%
SpS32.98
BVpS35.08
TBVpS4.01
PEG (NY)76.96
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
WACC9.21%
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 Y0.17%
EPS Next 2Y8.19%
EPS Next 3Y10.02%
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-3.37%
Revenue Next 2Y1.37%
Revenue Next 3Y2.94%
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%