FMC (FMC) AI Stock Analysis

• Market Cap: $4.66B
• Dividend Yield: 6.83%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.74
• Revenue Growth: -5.36%
• EPS Growth: -74.25%
• Country: US
• Employees: 5,700
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Agricultural Inputs
• EPS (TTM): 2.71
• Shares Outstanding: 124,903,930
• 10 Day Avg. Volume: 2,575,895
• 30 Day Avg. Volume: 4,021,781
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.22
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $47.94
• Price Target Upside: 32.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

FMC's overall score reflects significant revenue and profitability challenges, despite a robust balance sheet and cash flow improvements. The technical indicators suggest bearish market sentiment, while valuation offers some appeal with its high dividend yield. The recent earnings call outlines a cautious outlook amidst operational and market pressures, though strategic board appointments offer hope for future stability.

Positive Factors

Earnings Performance

Q4 adjusted EPS of $1.79 was $0.23 above estimate, with operating profit contributing significantly.

Market Expansion

The new Brazilian sales channel could expand the addressable market by ~30% by targeting large farms focused on corn and soy.

Sales Growth

Cyazypyr should remain a tailwind through 2028-2029, with growth rates of 13-17%, and new products are expected to add $800m-$1bn by 2030.

Negative Factors

Competitive Pressure

The company is seeing increased generic competition for Rynaxypyr in China, India, Eastern Europe and South America, pressuring both pricing and volumes.

Financial Performance

Lower EBITDA and FCF mean less support for FMC stock until free cash flow improves.

Trade Policy Impact

A headwind from US tariffs on Canadian imports is expected to impact FMC's sales and earnings, with each 1% hit to US farm profits potentially cutting FMC sales by $3.8-5.8m.

FMC Business Overview & Revenue Model

Company Description

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that include insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

FMC Corporation generates revenue primarily through the sale of its crop protection products, which are distributed globally to farmers and agricultural businesses. The company's key revenue streams include sales from its insecticides, herbicides, and fungicides, each designed to protect crops from pests, weeds, and diseases. FMC's robust research and development initiatives enable it to innovate and expand its product offerings, thereby maintaining a competitive edge in the market. Additionally, FMC benefits from strategic partnerships and collaborations with agricultural organizations and institutions, which enhance its market reach and product development capabilities. Factors such as global agricultural trends, regulatory changes, and climate conditions also play a significant role in influencing FMC's earnings.

FMC Financial Statement Overview

Summary

FMC's financial performance is mixed. While there is a strong balance sheet and improved cash flow, a sharp revenue decline and negative profitability weigh heavily. The company needs to tackle its revenue and margin challenges.

Income Statement

FMC has faced significant challenges over the past year, with a substantial decline in total revenue from $4.49 billion in 2023 to $918 million in 2024. The company reported a negative net income in 2024, resulting in negative net profit margins. The EBIT and EBITDA margins also saw a steep decline, indicating decreased operational efficiency. These factors contribute to a below-average income statement score.

Balance Sheet

FMC's balance sheet shows a strong equity position, with stockholders' equity at $4.49 billion in 2024, indicating stability. The debt-to-equity ratio is favorable, suggesting manageable leverage. However, total assets have decreased slightly, which could be a concern if the trend continues. Overall, the balance sheet remains robust, supporting a higher score.

Cash Flow

The operating cash flow improved significantly from a negative $386 million in 2023 to $660 million in 2024, highlighting strong cash generation capabilities. The free cash flow has also shown improvement. However, the volatility in cash flow over previous years indicates potential risks, warranting a moderate score.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
918.00M	4.49B	5.80B	5.05B	4.64B
	Gross Profit
339.70M	1.83B	2.33B	2.17B	2.05B
	EBIT
9.40M	679.20M	1.06B	962.00M	850.50M
	EBITDA
664.60M	786.20M	1.30B	1.19B	1.04B
	Net Income Common Stockholders
-2.70M	1.32B	736.50M	739.60M	552.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
357.30M	302.40M	572.00M	516.80M	568.90M
	Total Assets
11.65B	11.93B	11.17B	10.58B	10.19B
	Total Debt
3.50B	4.11B	3.27B	3.17B	3.27B
	Net Debt
3.14B	3.80B	2.70B	2.66B	2.70B
	Total Liabilities
7.14B	7.49B	7.77B	7.53B	7.20B
	Stockholders Equity
4.49B	4.41B	3.40B	3.05B	2.98B
Cash Flow		Free Cash Flow
603.20M	-520.30M	440.10M	720.00M	580.60M
	Operating Cash Flow
671.10M	-386.40M	582.40M	820.10M	647.80M
	Investing Cash Flow
263.60M	-154.40M	-266.40M	-112.00M	-169.30M
	Financing Cash Flow
-870.10M	331.50M	-237.40M	-747.90M	-250.30M

FMC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMC, the sentiment is Negative. The current price of 36.24 is below the 20-day moving average (MA) of 40.27, below the 50-day MA of 40.21, and below the 200-day MA of 52.98, indicating a bearish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 55.17 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMC.

FMC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	78 Outperform	$11.74B	10.46	22.76%	2.92%	-10.48%	-13.78%
ICL	76 Outperform	$7.92B	19.46	7.08%	3.31%	-8.59%	-37.13%
CTVA	73 Outperform	$40.00B	44.94	3.49%	1.21%	-1.85%	26.00%
MOS	64 Neutral	$7.82B	45.25	1.47%	3.44%	-18.79%	-84.24%
FMC	63 Neutral	$4.66B	13.75	9.02%	6.83%	-5.36%	-74.25%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%
SMG	45 Neutral	$3.02B	―	4.98%	5.48%	3.61%	94.27%

FMC Corporate Events

FMC Appoints Anthony DiSilvestro to Board of Directors

FMC Corporation announced the election of Anthony DiSilvestro to its Board of Directors, effective December 12, 2024. DiSilvestro, who brings over 40 years of financial experience and notable success in corporate financial turnarounds, will serve on the Audit and Compensation and Human Capital Committees. His appointment is expected to enhance FMC’s strategic direction and contribute to its ongoing success and value creation for stakeholders.