FMC CORP (FMC) Stock Fundamental Analysis
NYSE:FMC - New York Stock Exchange, Inc. - US3024913036 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FMC. FMC was compared to 85 industry peers in the Chemicals industry. FMC has an average financial health and profitability rating. 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.
In the past year FMC had a positive 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
Looking at the Return On Assets, with a value of 2.77%, FMC is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
FMC has a Return On Equity of 7.46%. This is in the better half of the industry: FMC outperforms 68.24% of its industry peers.
With a Return On Invested Capital value of 5.04%, FMC perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.46% | ||
| ROIC | 5.04% |
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
The Profit Margin of FMC (7.93%) is better than 78.82% of its industry peers.
In the last couple of years the Profit Margin of FMC has declined.
FMC has a better Operating Margin (14.56%) than 76.47% of its industry peers.
FMC's Operating Margin has declined in the last couple of years.
FMC has a Gross Margin of 39.47%. This is amongst the best in the industry. FMC outperforms 82.35% of its industry peers.
In the last couple of years the Gross Margin of FMC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.56% | ||
| PM (TTM) | 7.93% | ||
| GM | 39.47% |
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
FMC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that FMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
FMC's Altman-Z score of 1.90 is in line compared to the rest of the industry. FMC outperforms 50.59% of its industry peers.
The Debt to FCF ratio of FMC is 15.03, which is on the high side as it means it would take FMC, 15.03 years of fcf income to pay off all of its debts.
FMC has a Debt to FCF ratio of 15.03. This is comparable to the rest of the industry: FMC outperforms 56.47% of its industry peers.
FMC has a Debt/Equity ratio of 0.89. This is a neutral value indicating FMC is somewhat dependend on debt financing.
FMC has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: FMC underperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.55
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.54 indicates that FMC should not have too much problems paying its short term obligations.
The Current ratio of FMC (1.54) is worse than 65.88% of its industry peers.
A Quick Ratio of 1.12 indicates that FMC should not have too much problems paying its short term obligations.
FMC has a Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.82% 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.
Looking at the last year, FMC shows a small growth in Revenue. The Revenue has grown by 1.45% in the last year.
FMC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.63% yearly.
EPS 1Y (TTM)38.82%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%-50%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%-13.79%
3.2 Future
Based on estimates for the next years, FMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.60% on average per year.
FMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y-0.59%
EPS Next 2Y7.84%
EPS Next 3Y9.78%
EPS Next 5Y13.6%
Revenue Next Year-3.56%
Revenue Next 2Y1.27%
Revenue Next 3Y2.85%
Revenue Next 5Y4.15%
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.
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 13.05, which indicates a correct valuation of FMC.
FMC's Price/Earnings ratio is a bit cheaper when compared to the industry. FMC is cheaper than 74.12% 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 27.21.
FMC is valuated reasonably with a Price/Forward Earnings ratio of 10.64.
74.12% of the companies in the same industry are more expensive than FMC, based on the Price/Forward Earnings ratio.
FMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMC indicates a somewhat cheap valuation: FMC is cheaper than 71.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.14 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.84%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
FMC has a Yearly Dividend Yield of 5.38%, which is a nice return.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.69. 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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
The dividend of FMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y7.84%
EPS Next 3Y9.78%
42.94
+1.19 (+2.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.48%
Inst Owner Change-3.16%
Ins Owners0.44%
Ins Owner Change15.6%
Market Cap5.36B
Analysts68
Price Target45.85 (6.78%)
Short Float %5.48%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)49.42%
Min EPS beat(2)10.67%
Max EPS beat(2)88.17%
EPS beat(4)4
Avg EPS beat(4)35.27%
Min EPS beat(4)10.67%
Max EPS beat(4)88.17%
EPS beat(8)5
Avg EPS beat(8)13.46%
EPS beat(12)9
Avg EPS beat(12)9.91%
EPS beat(16)13
Avg EPS beat(16)8.91%
Revenue beat(2)0
Avg Revenue beat(2)-3.97%
Min Revenue beat(2)-7.88%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-7.88%
Max Revenue beat(4)1.85%
Revenue beat(8)1
Avg Revenue beat(8)-3.85%
Revenue beat(12)4
Avg Revenue beat(12)-1.92%
Revenue beat(16)8
Avg Revenue beat(16)-1.01%
PT rev (1m)-1.34%
PT rev (3m)-7.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.35%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.64 | ||
| P/S | 1.3 | ||
| P/FCF | 20.14 | ||
| P/OCF | 19.35 | ||
| P/B | 1.22 | ||
| P/tB | 10.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.29
EY7.66%
EPS(NY)4.04
Fwd EY9.4%
FCF(TTM)2.13
FCFY4.96%
OCF(TTM)2.22
OCFY5.17%
SpS32.98
BVpS35.08
TBVpS4.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.46% | ||
| ROCE | 7.06% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 9.12% | ||
| OM | 14.56% | ||
| PM (TTM) | 7.93% | ||
| GM | 39.47% | ||
| FCFM | 6.46% |
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-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 15.03 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.51% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.9 |
F-Score5
WACC9.1%
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)38.82%
EPS 3Y-20.59%
EPS 5Y-10.61%
EPS Q2Q%-50%
EPS Next Y-0.59%
EPS Next 2Y7.84%
EPS Next 3Y9.78%
EPS Next 5Y13.6%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-5.59%
Revenue growth 5Y-1.63%
Sales Q2Q%-13.79%
Revenue Next Year-3.56%
Revenue Next 2Y1.27%
Revenue Next 3Y2.85%
Revenue Next 5Y4.15%
EBIT growth 1Y22.97%
EBIT growth 3Y-16.39%
EBIT growth 5Y-7.96%
EBIT Next Year26.78%
EBIT Next 3Y14.67%
EBIT Next 5Y15.09%
FCF growth 1Y41.35%
FCF growth 3Y-1.74%
FCF growth 5Y14.13%
OCF growth 1Y-15.31%
OCF growth 3Y-6.47%
OCF growth 5Y6.56%