We assign a fundamental rating of 3 out of 10 to FMC. FMC was compared to 83 industry peers in the Chemicals industry. There are concerns on the financial health of FMC while its profitability can be described as average. FMC has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

FMC had positive earnings in the past year.
In the past year FMC has reported a negative cash flow from operations.
In the past 5 years FMC has always been profitable.
Of the past 5 years FMC 4 years had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -4.41%, FMC is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
FMC's Return On Equity of -14.11% is on the low side compared to the rest of the industry. FMC is outperformed by 69.88% of its industry peers.
FMC has a Return On Invested Capital (2.92%) which is in line with its industry peers.
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 6.11%.
The 3 year average ROIC (7.90%) for FMC is well above the current ROIC(2.92%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	-4.41%
ROE	-14.11%
ROIC	2.92%

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

In the last couple of years the Profit Margin of FMC has declined.
The Operating Margin of FMC (9.48%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FMC has declined.
With an excellent Gross Margin value of 38.15%, FMC belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
FMC's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	9.48%
PM (TTM)	N/A
GM	38.15%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for FMC has been reduced compared to 5 years ago.
Compared to 1 year ago, FMC has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.38, we must say that FMC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.38, FMC is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.18 is on the high side and indicates that FMC has dependencies on debt financing.
FMC has a worse Debt to Equity ratio (1.18) than 71.08% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.18
Debt/FCF	N/A
Altman-Z	1.38

ROIC/WACC0.32

WACC9.1%

2.3 Liquidity

A Current Ratio of 1.40 indicates that FMC should not have too much problems paying its short term obligations.
The Current ratio of FMC (1.40) is worse than 77.11% of its industry peers.
A Quick Ratio of 1.05 indicates that FMC should not have too much problems paying its short term obligations.
FMC's Quick ratio of 1.05 is on the low side compared to the rest of the industry. FMC is outperformed by 62.65% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.4
Quick Ratio	1.05

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

FMC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.09%, 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -13.42%.
FMC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.63% yearly.

EPS 1Y (TTM)29.09%

EPS 3Y-20.59%

EPS 5Y-10.61%

EPS Q2Q%28.99%

Revenue 1Y (TTM)-13.42%

Revenue growth 3Y-5.59%

Revenue growth 5Y-1.63%

Sales Q2Q%-9.77%

3.2 Future

FMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.55% yearly.
Based on estimates for the next years, FMC will show a decrease in Revenue. The Revenue will decrease by -0.02% on average per year.

EPS Next Y-12.67%

EPS Next 2Y-13.94%

EPS Next 3Y-3.99%

EPS Next 5Y1.55%

Revenue Next Year-9.8%

Revenue Next 2Y-4.55%

Revenue Next 3Y-0.96%

Revenue Next 5Y-0.02%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 4.45, the valuation of FMC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of FMC indicates a rather cheap valuation: FMC is cheaper than 96.39% of the companies listed in the same industry.
FMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
With a Price/Forward Earnings ratio of 6.15, the valuation of FMC can be described as very cheap.
Based on the Price/Forward Earnings ratio, FMC is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, FMC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	4.45
Fwd PE	6.15

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

A cheap valuation may be justified as FMC's earnings are expected to decrease with -3.99% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-13.94%

EPS Next 3Y-3.99%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.01%, FMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.27, FMC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.83, FMC has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.01%

5.2 History

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)N/A

Div Incr Years0

Div Non Decr Years18

5.3 Sustainability

DPN/A

EPS Next 2Y-13.94%

EPS Next 3Y-3.99%

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FMC CORP / FMC FAQ

What is the ChartMill fundamental rating of FMC CORP (FMC) stock?

ChartMill assigns a fundamental rating of 3 / 10 to FMC.

Can you provide the valuation status for FMC CORP?

ChartMill assigns a valuation rating of 5 / 10 to FMC CORP (FMC). This can be considered as Fairly Valued.

What is the profitability of FMC stock?

FMC CORP (FMC) has a profitability rating of 4 / 10.

Can you provide the expected EPS growth for FMC stock?

The Earnings per Share (EPS) of FMC CORP (FMC) is expected to decline by -12.67% in the next year.