FMC CORP (FMC)
US3024913036 - Common Stock
FMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While FMC has a great profitability rating, there are quite some concerns on its financial health. 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.
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
FMC has a Return On Assets of 11.88%. This is amongst the best in the industry. FMC outperforms 96.47% of its industry peers.
Looking at the Return On Equity, with a value of 31.51%, FMC belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
FMC's Return On Invested Capital of 4.74% is in line compared to the rest of the industry. FMC outperforms 54.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FMC is above the industry average of 7.26%.
The 3 year average ROIC (10.55%) for FMC is well above the current ROIC(4.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | 31.51% | ||
| ROIC | 4.74% |
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
Looking at the Profit Margin, with a value of 34.83%, FMC belongs to the top of the industry, outperforming 98.82% of the companies in the same industry.
In the last couple of years the Profit Margin of FMC has grown nicely.
The Operating Margin of FMC (12.79%) is better than 71.76% of its industry peers.
FMC's Operating Margin has declined in the last couple of years.
FMC's Gross Margin of 37.43% is fine compared to the rest of the industry. FMC outperforms 75.29% of its industry peers.
In the last couple of years the Gross Margin of FMC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.79% | ||
| PM (TTM) | 34.83% | ||
| GM | 37.43% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FMC is creating some value.
The number of shares outstanding for FMC has been reduced compared to 1 year ago.
FMC has less shares outstanding than it did 5 years ago.
FMC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.99 indicates that FMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.99, FMC perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
FMC has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as FMC would need 8.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.26, FMC perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that FMC is somewhat dependend on debt financing.
FMC's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. FMC is outperformed by 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.6
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.48 indicates that FMC should not have too much problems paying its short term obligations.
FMC has a worse Current ratio (1.48) than 72.94% of its industry peers.
A Quick Ratio of 1.09 indicates that FMC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, FMC is not doing good in the industry: 62.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for FMC have decreased strongly by -45.87% in the last year.
The Earnings Per Share has been decreasing by -9.68% on average over the past years.
Looking at the last year, FMC shows a very negative growth in Revenue. The Revenue has decreased by -16.02% in the last year.
FMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)-45.87%
EPS 3Y-15.21%
EPS 5Y-9.68%
EPS Q2Q%56.82%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-1.13%
Revenue growth 5Y0.92%
Sales Q2Q%8.5%
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 4.64% on average per year.
EPS Next Y-9.93%
EPS Next 2Y11.65%
EPS Next 3Y14.5%
EPS Next 5Y13.6%
Revenue Next Year-4.58%
Revenue Next 2Y-0.13%
Revenue Next 3Y1.96%
Revenue Next 5Y4.64%
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
FMC is valuated rather expensively with a Price/Earnings ratio of 20.57.
Compared to the rest of the industry, the Price/Earnings ratio of FMC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.48. FMC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.01, 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 72.94% of the companies in the same industry.
FMC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 12.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FMC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMC indicates a somewhat cheap valuation: FMC is cheaper than 72.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.33 | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
The decent profitability rating of FMC may justify a higher PE ratio.
A more expensive valuation may be justified as FMC's earnings are expected to grow with 14.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.65%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, FMC has a reasonable but not impressive dividend return.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.00. FMC pays more dividend than 85.88% of the companies in the same industry.
FMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
The dividend of FMC is nicely growing with an annual growth rate of 28.23%!
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)28.23%
Div Incr Years6
Div Non Decr Years17
5.3 Sustainability
20.01% of the earnings are spent on dividend by FMC. This is a low number and sustainable payout ratio.
FMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.01%
EPS Next 2Y11.65%
EPS Next 3Y14.5%
FMC CORP
NYSE:FMC (12/6/2024, 8:04:00 PM)
After market: 56.58 0 (0%)56.58
-0.61 (-1.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.06B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 12.01 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | 31.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.79% | ||
| PM (TTM) | 34.83% | ||
| GM | 37.43% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.09 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-45.87%
EPS 3Y-15.21%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-1.13%
Revenue growth 5Y
Sales 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