FMC CORP (FMC) Stock Fundamental Analysis
NYSE:FMC - US3024913036 - Common Stock
37.78 USD
+0.49 (+1.31%)
38.03 USD
+0.25 (+0.66%)
Taking everything into account, FMC scores 4 out of 10 in our fundamental rating. FMC was compared to 83 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. Finally 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.
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's Return On Assets of 0.81% is in line compared to the rest of the industry. FMC outperforms 55.42% of its industry peers.
FMC has a Return On Equity of 2.25%. This is comparable to the rest of the industry: FMC outperforms 55.42% of its industry peers.
FMC's Return On Invested Capital of 5.01% is in line compared to the rest of the industry. FMC outperforms 57.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMC is in line with the industry average of 6.34%.
| 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 has a Profit Margin of 2.40%. This is comparable to the rest of the industry: FMC outperforms 57.83% of its industry peers.
In the last couple of years the Profit Margin of FMC has declined.
FMC has a Operating Margin of 14.64%. This is in the better half of the industry: FMC outperforms 78.31% of its industry peers.
In the last couple of years the Operating Margin of FMC has declined.
FMC has a better Gross Margin (39.55%) than 83.13% 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
FMC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FMC has about the same amout of shares outstanding than it did 1 year ago.
FMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FMC has an improved debt to assets ratio.
2.2 Solvency
FMC has an Altman-Z score of 1.78. 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 (1.78) which is comparable to the rest of the industry.
The Debt to FCF ratio of FMC is 261.84, which is on the high side as it means it would take FMC, 261.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 261.84, FMC is in line with its industry, outperforming 43.37% of the companies in the same industry.
FMC has a Debt/Equity ratio of 0.93. This is a neutral value indicating FMC is somewhat dependend on debt financing.
FMC has a worse Debt to Equity ratio (0.93) than 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 261.84 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.55
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.53 indicates that FMC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.53, FMC is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that FMC should not have too much problems paying its short term obligations.
FMC's Quick ratio of 1.14 is in line compared to the rest of the industry. FMC outperforms 43.37% of its industry peers.
| 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.
FMC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.61% yearly.
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
FMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
FMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y2.5%
EPS Next 2Y7.53%
EPS Next 3Y9.67%
EPS Next 5Y12.89%
Revenue Next Year-2.96%
Revenue Next 2Y0.81%
Revenue Next 3Y2.76%
Revenue Next 5Y6.01%
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
The Price/Earnings ratio is 11.28, which indicates a very decent valuation of FMC.
FMC's Price/Earnings ratio is rather cheap when compared to the industry. FMC is cheaper than 83.13% 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 27.06.
With a Price/Forward Earnings ratio of 9.42, the valuation of FMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FMC is valued cheaply inside the industry as 90.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FMC to the average of the S&P500 Index (22.69), we can say FMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
FMC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 296.8 | ||
| 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)4.51
PEG (5Y)N/A
EPS Next 2Y7.53%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.22%, FMC is a good candidate for dividend investing.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.44. FMC pays more dividend than 89.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, FMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
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 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
The dividend of FMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.53%
EPS Next 3Y9.67%
37.78
+0.49 (+1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.49%
Inst Owner Change6.28%
Ins Owners0.44%
Ins Owner Change7.58%
Market Cap4.72B
Analysts68.8
Price Target47.62 (26.05%)
Short Float %6.16%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
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)-0.24%
PT rev (3m)2.48%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)1.73%
EPS NY rev (1m)2.32%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 9.42 | ||
| P/S | 1.14 | ||
| P/FCF | 296.8 | ||
| P/OCF | 147.93 | ||
| P/B | 1.07 | ||
| P/tB | 10.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.35
EY8.87%
EPS(NY)4.01
Fwd EY10.62%
FCF(TTM)0.13
FCFY0.34%
OCF(TTM)0.26
OCFY0.68%
SpS33.08
BVpS35.2
TBVpS3.75
PEG (NY)4.51
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 | 1.78 |
F-Score4
WACC9.09%
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)34%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%9.52%
EPS Next Y2.5%
EPS Next 2Y7.53%
EPS Next 3Y9.67%
EPS Next 5Y12.89%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%1.17%
Revenue Next Year-2.96%
Revenue Next 2Y0.81%
Revenue Next 3Y2.76%
Revenue Next 5Y6.01%
EBIT growth 1Y20.38%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year28.16%
EBIT Next 3Y14.96%
EBIT Next 5Y14.57%
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%