FMC CORP (FMC) Stock Fundamental Analysis
USA - NYSE:FMC - US3024913036 - Common Stock
30.3 USD
+0.64 (+2.16%)
30.5099 USD
+0.21 (+0.69%)
FMC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. FMC has a medium profitability rating, but doesn't score so well on its financial health evaluation. FMC has a correct valuation and a medium growth rate. Finally 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
FMC's Return On Assets of 0.81% is in line compared to the rest of the industry. FMC outperforms 53.01% of its industry peers.
FMC's Return On Equity of 2.25% is in line compared to the rest of the industry. FMC outperforms 54.22% 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 6.30%.
| 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 (2.40%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FMC has declined.
FMC's Operating Margin of 14.64% is fine compared to the rest of the industry. FMC outperforms 77.11% of its industry peers.
In the last couple of years the Operating Margin of FMC has declined.
FMC's Gross Margin of 39.55% is amongst the best of the industry. FMC outperforms 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
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.
Compared to 5 years ago, FMC has less shares outstanding
Compared to 1 year ago, FMC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that FMC is in the distress zone and has some risk of bankruptcy.
FMC has a Altman-Z score (1.71) 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.
FMC has a Debt to FCF ratio (261.84) which is in line with its industry peers.
A Debt/Equity ratio of 0.93 indicates that FMC is somewhat dependend on debt financing.
FMC's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. FMC is outperformed by 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 261.84 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.57
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.53 indicates that FMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, FMC is doing worse than 69.88% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that FMC should not have too much problems paying its short term obligations.
FMC has a Quick ratio (1.14) which 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
FMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.00%, which is quite impressive.
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%.
Measured over the past years, FMC shows a decrease in Revenue. The Revenue has been decreasing by -1.63% on average per year.
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.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y2.5%
EPS Next 2Y7.4%
EPS Next 3Y9.67%
EPS Next 5Y12.89%
Revenue Next Year-2.96%
Revenue Next 2Y0.81%
Revenue Next 3Y2.69%
Revenue Next 5Y6.01%
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.
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
Based on the Price/Earnings ratio of 9.04, the valuation of FMC can be described as reasonable.
Based on the Price/Earnings ratio, FMC is valued cheaper than 87.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. FMC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of FMC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMC indicates a rather cheap valuation: FMC is cheaper than 90.36% of the companies listed in the same industry.
FMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
FMC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 238.04 | ||
| 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)3.62
PEG (5Y)N/A
EPS Next 2Y7.4%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 7.74%, which is a nice return.
The stock price of FMC dropped by -29.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.76. FMC pays more dividend than 89.16% of the companies in the same industry.
FMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
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 2Y7.4%
EPS Next 3Y9.67%
30.3
+0.64 (+2.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change0%
Ins Owners0.44%
Ins Owner Change2.69%
Market Cap3.78B
Revenue(TTM)4.13B
Net Income(TTM)99.00M
Analysts69.6
Price Target47.62 (57.16%)
Short Float %6.69%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
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%
PT rev (3m)-0.24%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)0%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.92 | ||
| P/FCF | 238.04 | ||
| P/OCF | 118.64 | ||
| P/B | 0.86 | ||
| P/tB | 8.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.35
EY11.06%
EPS(NY)4
Fwd EY13.21%
FCF(TTM)0.13
FCFY0.42%
OCF(TTM)0.26
OCFY0.84%
SpS33.08
BVpS35.2
TBVpS3.75
PEG (NY)3.62
PEG (5Y)N/A
Graham Number51.51
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%
ROICexgc growth 3Y-26.4%
ROICexgc 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 | 1.71 |
F-Score4
WACC8.75%
ROIC/WACC0.57
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 2Y7.4%
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 3Y2.69%
Revenue Next 5Y6.01%
EBIT growth 1Y20.38%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year29.82%
EBIT Next 3Y14.82%
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%