FMC CORP (FMC)
US3024913036 - Common Stock
Overall FMC gets a fundamental rating of 5 out of 10. We evaluated FMC against 83 industry peers in the Chemicals industry. While FMC belongs to the best of the industry regarding profitability, there are concerns on its financial health. FMC is not valued too expensively and it also shows a decent growth rate. Finally FMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FMC was profitable.
In the past year FMC had a positive cash flow from operations.
FMC had positive earnings in each of the past 5 years.
Of the past 5 years FMC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FMC (11.88%) is better than 96.39% of its industry peers.
FMC has a better Return On Equity (31.51%) than 96.39% of its industry peers.
With a Return On Invested Capital value of 4.74%, FMC perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
FMC had an Average Return On Invested Capital over the past 3 years of 10.55%. This is above the industry average of 7.24%.
The last Return On Invested Capital (4.74%) for FMC is well below the 3 year average (10.55%), which needs to be investigated, but indicates that FMC had better years and this may not be a problem.
| 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 98.80% of the companies in the same industry.
FMC's Profit Margin has improved in the last couple of years.
The Operating Margin of FMC (12.79%) is better than 71.08% of its industry peers.
In the last couple of years the Operating Margin of FMC has declined.
The Gross Margin of FMC (37.43%) is better than 74.70% of its industry peers.
FMC's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FMC is still creating some value.
FMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FMC has less shares outstanding
Compared to 1 year ago, FMC has a worse debt to assets ratio.
2.2 Solvency
FMC has an Altman-Z score of 1.91. This is not the best score and indicates that FMC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.91, FMC perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
The Debt to FCF ratio of FMC is 8.26, which is on the high side as it means it would take FMC, 8.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.26, FMC perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
FMC has a Debt/Equity ratio of 0.86. This is a neutral value indicating FMC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, FMC is not doing good in the industry: 62.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.59
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.48 indicates that FMC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, FMC is doing worse than 72.29% of the companies in the same industry.
FMC has a Quick Ratio of 1.09. 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 worse Quick ratio (1.09) than 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
FMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.87%.
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
The Earnings Per Share is expected to grow by 13.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.31% on average over the next years.
EPS Next Y-10.03%
EPS Next 2Y11.06%
EPS Next 3Y14.12%
EPS Next 5Y13.73%
Revenue Next Year-4.61%
Revenue Next 2Y-0.25%
Revenue Next 3Y1.85%
Revenue Next 5Y3.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.09, which indicates a rather expensive current valuation of FMC.
Compared to the rest of the industry, the Price/Earnings ratio of FMC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FMC to the average of the S&P500 Index (27.54), we can say FMC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 10.67, the valuation of FMC can be described as reasonable.
77.11% 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 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
FMC's Enterprise Value to EBITDA ratio is in line with the industry average.
73.49% of the companies in the same industry are more expensive than FMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.6 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
FMC has a very decent profitability rating, which may justify a higher PE ratio.
FMC's earnings are expected to grow with 14.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.06%
EPS Next 3Y14.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, FMC is a good candidate for dividend investing.
In the last 3 months the price of FMC has falen by -24.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FMC's Dividend Yield is rather good when compared to the industry average which is at 3.35. FMC pays more dividend than 86.75% of the companies in the same industry.
FMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of FMC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.01%
EPS Next 2Y11.06%
EPS Next 3Y14.12%
FMC CORP
NYSE:FMC (12/24/2024, 8:13:48 PM)
After market: 49.74 0 (0%)49.74
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.97%
Inst Owner Change-1.53%
Ins Owners0.38%
Ins Owner Change-0.2%
Market Cap6.21B
Analysts70
Price Target73.56 (47.89%)
Short Float %4.67%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Dividend Growth(5Y)28.23%
DP20.01%
Div Incr Years6
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.13%
Min EPS beat(2)12.59%
Max EPS beat(2)29.66%
EPS beat(4)3
Avg EPS beat(4)12.02%
Min EPS beat(4)-1.79%
Max EPS beat(4)29.66%
EPS beat(8)5
Avg EPS beat(8)1.24%
EPS beat(12)9
Avg EPS beat(12)2.98%
EPS beat(16)12
Avg EPS beat(16)2.6%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)1.85%
Revenue beat(4)1
Avg Revenue beat(4)-4.47%
Min Revenue beat(4)-9.82%
Max Revenue beat(4)1.85%
Revenue beat(8)2
Avg Revenue beat(8)-3.11%
Revenue beat(12)6
Avg Revenue beat(12)-0.75%
Revenue beat(16)8
Avg Revenue beat(16)-0.66%
PT rev (1m)-0.87%
PT rev (3m)0.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.9%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 10.67 | ||
| P/S | 1.49 | ||
| P/FCF | 12.6 | ||
| P/OCF | 11 | ||
| P/B | 1.35 | ||
| P/tB | 9.29 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)2.75
EY5.53%
EPS(NY)4.66
Fwd EY9.37%
FCF(TTM)3.95
FCFY7.94%
OCF(TTM)4.52
OCFY9.09%
SpS33.39
BVpS36.91
TBVpS5.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.88% | ||
| ROE | 31.51% | ||
| ROCE | 6.18% | ||
| ROIC | 4.74% | ||
| ROICexc | 4.96% | ||
| ROICexgc | 8.69% | ||
| OM | 12.79% | ||
| PM (TTM) | 34.83% | ||
| GM | 37.43% | ||
| FCFM | 11.83% |
ROA(3y)8.17%
ROA(5y)6.95%
ROE(3y)25.06%
ROE(5y)22.51%
ROIC(3y)10.55%
ROIC(5y)10.96%
ROICexc(3y)11.26%
ROICexc(5y)11.69%
ROICexgc(3y)25.52%
ROICexgc(5y)27.22%
ROCE(3y)13.17%
ROCE(5y)13.48%
ROICexcg growth 3Y-26.89%
ROICexcg growth 5Y-17.04%
ROICexc growth 3Y-20.41%
ROICexc growth 5Y-12.15%
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%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 39.87% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 2.18 | ||
| Cash Conversion | 79.24% | ||
| Profit Quality | 33.96% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.91 |
F-Score5
WACC8.09%
ROIC/WACC0.59
Cap/Depr(3y)74.22%
Cap/Depr(5y)85.57%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.87%
EPS 3Y-15.21%
EPS 5Y-9.68%
EPS Q2Q%56.82%
EPS Next Y-10.03%
EPS Next 2Y11.06%
EPS Next 3Y14.12%
EPS Next 5Y13.73%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y-1.13%
Revenue growth 5Y0.92%
Sales Q2Q%8.5%
Revenue Next Year-4.61%
Revenue Next 2Y-0.25%
Revenue Next 3Y1.85%
Revenue Next 5Y3.31%
EBIT growth 1Y-41.83%
EBIT growth 3Y-13.34%
EBIT growth 5Y-7.49%
EBIT Next Year10.02%
EBIT Next 3Y14.4%
EBIT Next 5Y12.8%
FCF growth 1Y20.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.58%
OCF growth 3YN/A
OCF growth 5YN/A