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 valued correctly, but it does not seem to be growing. FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FMC had positive earnings in the past year.
In the past year FMC had a positive cash flow from operations.
Each year in the past 5 years FMC has been profitable.
Of the past 5 years FMC 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.91%, FMC is doing good in the industry, outperforming 64.71% of the companies in the same industry.
With a decent Return On Equity value of 7.53%, FMC is doing good in the industry, outperforming 64.71% of the companies in the same industry.
FMC has a Return On Invested Capital (5.81%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMC is in line with the industry average of 7.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 7.53% | ||
| ROIC | 5.81% |
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 8.00%. This is amongst the best in the industry. FMC outperforms 81.18% of its industry peers.
FMC's Profit Margin has declined in the last couple of years.
FMC has a Operating Margin of 14.97%. This is in the better half of the industry: FMC outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of FMC has declined.
With a decent Gross Margin value of 38.83%, FMC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
FMC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 8% | ||
| GM | 38.83% |
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.
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
Compared to 1 year ago, FMC has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of FMC is 5.01, which is a neutral value as it means it would take FMC, 5.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.01, FMC is doing good in the industry, outperforming 75.29% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that FMC is somewhat dependend on debt financing.
The Debt to Equity ratio of FMC (0.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.64 indicates that FMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, FMC is doing worse than 60.00% of the companies in the same industry.
FMC has a Quick Ratio of 1.24. 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 Quick ratio of 1.24. This is comparable to the rest of the industry: FMC outperforms 56.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
FMC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.20%.
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 decrease in Revenue. The Revenue has decreased by -5.36% in the last year.
The Revenue has been decreasing by -1.63% on average over the past years.
EPS 1Y (TTM)-8.2%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%67.29%
Revenue 1Y (TTM)-5.36%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%6.82%
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 12.57% yearly.
Based on estimates for the next years, FMC will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y-0.93%
EPS Next 2Y9.27%
EPS Next 3Y10.14%
EPS Next 5Y12.57%
Revenue Next Year-3.62%
Revenue Next 2Y1.35%
Revenue Next 3Y2.71%
Revenue Next 5Y6.3%
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
A Price/Earnings ratio of 12.08 indicates a correct valuation of FMC.
FMC's Price/Earnings ratio is a bit cheaper when compared to the industry. FMC is cheaper than 75.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.88. FMC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.19, which indicates a correct valuation of FMC.
70.59% of the companies in the same industry are more expensive than FMC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, FMC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, FMC is valued cheaper than 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.8 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.27%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 5.69%, which is a nice return.
The stock price of FMC dropped by -24.85% 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.
Compared to an average industry Dividend Yield of 3.80, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
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 Years6
Div Non Decr Years17
5.3 Sustainability
FMC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y9.27%
EPS Next 3Y10.14%
41.92
+0.18 (+0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change0.51%
Ins Owners0.39%
Ins Owner Change12.59%
Market Cap5.24B
Analysts67.2
Price Target47.04 (12.21%)
Short Float %5.67%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend2.33
Dividend Growth(5Y)28.29%
DP0%
Div Incr Years6
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.17%
Min EPS beat(2)10.67%
Max EPS beat(2)29.66%
EPS beat(4)4
Avg EPS beat(4)15.13%
Min EPS beat(4)7.6%
Max EPS beat(4)29.66%
EPS beat(8)5
Avg EPS beat(8)2.47%
EPS beat(12)9
Avg EPS beat(12)3.32%
EPS beat(16)13
Avg EPS beat(16)3.42%
Revenue beat(2)1
Avg Revenue beat(2)-3.01%
Min Revenue beat(2)-7.88%
Max Revenue beat(2)1.85%
Revenue beat(4)1
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-9.82%
Max Revenue beat(4)1.85%
Revenue beat(8)1
Avg Revenue beat(8)-4.69%
Revenue beat(12)5
Avg Revenue beat(12)-1.58%
Revenue beat(16)8
Avg Revenue beat(16)-1.03%
PT rev (1m)-7.67%
PT rev (3m)-34.18%
EPS NQ rev (1m)10.28%
EPS NQ rev (3m)-89.49%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-26.26%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-23.88%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-5.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 12.19 | ||
| P/S | 1.23 | ||
| P/FCF | 7.8 | ||
| P/OCF | 7.8 | ||
| P/B | 1.16 | ||
| P/tB | 8.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.47
EY8.28%
EPS(NY)3.44
Fwd EY8.2%
FCF(TTM)5.37
FCFY12.82%
OCF(TTM)5.37
OCFY12.82%
SpS34
BVpS36.1
TBVpS5.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 7.53% | ||
| ROCE | 7.36% | ||
| ROIC | 5.81% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 11.39% | ||
| OM | 14.97% | ||
| PM (TTM) | 8% | ||
| GM | 38.83% | ||
| FCFM | 15.81% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 197.67% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | N/A |
F-Score4
WACC8.77%
ROIC/WACC0.66
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)-8.2%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%67.29%
EPS Next Y-0.93%
EPS Next 2Y9.27%
EPS Next 3Y10.14%
EPS Next 5Y12.57%
Revenue 1Y (TTM)-5.36%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%6.82%
Revenue Next Year-3.62%
Revenue Next 2Y1.35%
Revenue Next 3Y2.71%
Revenue Next 5Y6.3%
EBIT growth 1Y-8.19%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year27.58%
EBIT Next 3Y14.96%
EBIT Next 5Y14.34%
FCF growth 1Y228.98%
FCF growth 3Y-1.74%
FCF growth 5Y14.13%
OCF growth 1Y273.68%
OCF growth 3Y-6.47%
OCF growth 5Y6.56%