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FMC Corp FMC

Morningstar Rating
$56.39 +5.10 (9.94%)
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Company Report

FMC Earnings: Stock Plummets as Brazil Drought Prolongs Inventory Destocking in 2024

After updating our model to incorporate FMC's fourth-quarter results, we maintain our $110 per share fair value estimate. Our narrow-moat rating is also unchanged. FMC's results were in line with our view that the inventory destocking that weighed on 2023 volumes will be complete by mid-2024. In our view, a drought in Brazil, FMC's largest market, weighed on fourth-quarter results and will prolong the period of inventory destocking among farmers and farm retailers in Brazil into 2024. However, we forecast revenue growth and a small adjusted EBITDA increase versus 2023.

Price vs Fair Value

FMC is trading at a 49% discount.
Price
$56.39
Fair Value
$531.00
Uncertainty
High
1-Star Price
$131.10
5-Star Price
$23.00
Economic Moat
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Capital Allocation
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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
$51.29
Day Range
$51.4456.55
52-Week Range
$49.49129.81
Bid/Ask
$50.28 / $56.10
Market Cap
$7.04 Bil
Volume/Avg
84 / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
14.92
Price/Sales
1.58
Dividend Yield (Trailing)
4.11%
Dividend Yield (Forward)
4.11%
Total Yield
5.19%

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 Value
Total Number of Employees
6,600

Competitors

Valuation

Metric
FMC
NTR
CTVA
Price/Earnings (Normalized)
14.928.8621.07
Price/Book Value
1.591.031.50
Price/Sales
1.580.892.21
Price/Cash Flow
14.085.6914.68
Price/Earnings
FMC
NTR
CTVA

Financial Strength

Metric
FMC
NTR
CTVA
Quick Ratio
0.960.730.79
Current Ratio
1.521.251.56
Interest Coverage
2.275.764.48
Quick Ratio
FMC
NTR
CTVA

Profitability

Metric
FMC
NTR
CTVA
Return on Assets (Normalized)
4.11%5.61%4.38%
Return on Equity (Normalized)
13.25%11.93%7.51%
Return on Invested Capital (Normalized)
8.58%8.85%6.29%
Return on Assets
FMC
NTR
CTVA
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Economic Moat
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CTVA
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NTR
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CF
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MOS
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YARIY
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YRAIF
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ICL
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SMG
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KPLUY
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