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FMC Corp FMC

Morningstar Rating
$59.60 +0.66 (1.12%)
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Company Report

FMC: Global Specialty Solutions Divestiture Will Accelerate Debt Repayment

FMC announced the sale of its global specialty solutions business to Envu for $350 million in a deal that should close by the end of the year. FMC had announced last November that it would look to divest the business, which sells crop protection products for nonagricultural uses. The proceeds will be used to pay down debt, which should allow FMC to more quickly restore its balance sheet health. Having updated our model to incorporate the deal, we maintain our $110 fair value estimate. Our narrow moat rating is also unchanged.

Price vs Fair Value

FMC is trading at a 842% premium.
Price
$59.60
Fair Value
$127.00
Uncertainty
High
1-Star Price
$869.30
5-Star Price
$91.00
Economic Moat
Ynsnxs
Capital Allocation
Vwkxcqkg

Bulls Say, Bears Say

Bulls

FMC has transformed its portfolio to focus on crop chemicals, which should see strong growth prospects as yield gains are needed to support rising food consumption from emerging markets.

Bears

FMC's patents have begun to expire for its two largest molecules. This will weigh on long-term profits as the company will face declining sales and margin compression from the patent expirations.

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News

Trading Information

Previous Close Price
$58.94
Day Range
$58.60–60.19
52-Week Range
$49.49–96.81
Bid/Ask
$59.19 / $60.01
Market Cap
$7.44 Bil
Volume/Avg
1.1 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
25.10
Price/Sales
1.84
Dividend Yield (Trailing)
3.89%
Dividend Yield (Forward)
3.89%
Total Yield
4.55%

Company Profile

FMC is a pure-play global crop protection company with a fairly balanced product portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop protection companies and focuses on the development of new products, including biologicals, through its research and development pipeline.
Sector
Basic Materials
Industry
Agricultural Inputs
Stock Style Box
Small Core
Total Number of Employees
6,600

Competitors

Valuation

Metric
FMC
CTVA
NTR
Price/Earnings (Normalized)
25.1027.158.90
Price/Book Value
1.731.561.04
Price/Sales
1.842.330.92
Price/Cash Flow
30.7115.926.08
Price/Earnings
FMC
CTVA
NTR

Financial Strength

Metric
FMC
CTVA
NTR
Quick Ratio
0.910.840.46
Current Ratio
1.461.511.15
Interest Coverage
1.243.142.80
Quick Ratio
FMC
CTVA
NTR

Profitability

Metric
FMC
CTVA
NTR
Return on Assets (Normalized)
2.53%3.89%3.42%
Return on Equity (Normalized)
7.88%6.72%7.31%
Return on Invested Capital (Normalized)
6.09%5.53%5.84%
Return on Assets
FMC
CTVA
NTR
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