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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Maintaining $110 Fair Value Estimate as FMC Reports Slow Start to the Year; Shares Fairly Valued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

FMC's first-quarter results showed a tough start to the year as adjusted EBITDA was down 14% year on year due to lower volumes in the Latin America and EMEA regions. In Latin America, the declines were driven by management's decision to reduce sales volumes to distributors in light of the delayed planting season due to weather. Similarly, lower sales volumes in EMEA were weather-driven as well. We expect the company will be able to make up much of the lower volumes throughout the rest of the year. Having updated our model to incorporate first-quarter results, we maintain our $110 per share fair value estimate for FMC. Our narrow-moat rating is also unchanged.

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Company Profile

Business Description

FMC is a pure-play crop chemical company. The company has diversified its sales to create a balanced crop chemical portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop chemical companies and will continue to develop new products through its research and development pipeline.

Contact
2929 Walnut Street
Philadelphia, PA, 19104
T +1 215 299-6000
Sector Basic Materials
Industry Agricultural Inputs
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 6,400