FMC (FMC) AI Stock Analysis

• Market Cap: $4.66B
• Dividend Yield: 6.22%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 47.0
• Beta (1Y): 0.95
• Revenue Growth: 1.16%
• EPS Growth: -92.85%
• Country: US
• Employees: 5,700
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Agricultural Inputs
• EPS (TTM): 0.69
• Shares Outstanding: 124,911,580
• 10 Day Avg. Volume: 1,423,269
• 30 Day Avg. Volume: 1,800,159
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 11.17
• 1Y Price Target: $45.09
• Price Target Upside: 20.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: $39.00 ▲(4.59% Upside)

FMC's overall stock score reflects moderate financial health with significant challenges in revenue growth and cash flow management. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. Despite these concerns, the earnings call provided some positive insights, particularly regarding new product growth and regional performance in EMEA.

Positive Factors

Financial Performance

Updated FX rates increase revenue, which benefits the company's financial performance.

Market Expansion

The new direct-to-grower corn/soy sales channel in Brazil may boost volume recovery.

Negative Factors

Market Expectations

The 2026 EPS consensus is higher than the revised estimate, suggesting challenges in meeting market expectations.

Regulatory Impact

There is concern about the post-2026 setup due to the Rynaxypyr loss of exclusivity.

Trade Policy

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 (FMC) is a global agricultural sciences company that specializes in providing innovative solutions to enhance crop productivity and sustainability. Operating primarily in the agricultural sector, FMC focuses on the development and manufacture of crop protection products, including insecticides, herbicides, and fungicides, as well as plant nutrients and specialty chemicals. With a strong commitment to research and development, FMC leverages advanced technologies to address the needs of farmers and contribute to food security worldwide.

How the Company Makes Money

FMC generates revenue through the sale of its crop protection products and solutions. The company's primary revenue streams include the sale of insecticides, herbicides, and fungicides, which are essential for protecting crops from pests and diseases. Additionally, FMC offers specialty products that enhance crop yield and quality, further contributing to its earnings. The company benefits from significant partnerships with agricultural distributors and retailers, allowing it to reach a broad customer base in various markets. Furthermore, FMC invests in research and development to innovate and expand its product portfolio, which helps to drive sales and maintain competitiveness in the agricultural industry.

FMC Financial Statement Overview

Summary

FMC shows moderate financial health with declining revenue and profit margins, indicating challenges in growth and operational efficiency. The balance sheet is stable with manageable debt, but cash flow generation is concerning due to significant declines in free cash flow.

Income Statement

The TTM revenue of $4.12 billion shows a decline from the previous year's $4.49 billion, indicating a negative revenue growth rate. The gross profit margin is approximately 39.3%, showing strong profitability but with a slight decline from previous periods. The net profit margin stands at 8.1%, showing moderate profitability. However, EBIT and EBITDA margins have decreased, suggesting potential challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is moderate at 0.22, indicating a balanced approach to leverage. The return on equity (ROE) is approximately 7.6%, which is relatively low, suggesting room for improvement in generating returns for shareholders. The equity ratio is around 37.1%, showing a stable capital structure with a healthy equity base.

Cash Flow

The free cash flow has decreased significantly from $603.2 million to $243.3 million, indicating a substantial negative growth rate. The operating cash flow to net income ratio is 0.87, which is below optimal levels, suggesting challenges in cash generation relative to net income. The free cash flow to net income ratio is 0.73, showing limited free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.13B	4.25B	4.49B	5.80B	5.05B	4.64B
Gross Profit	1.63B	1.65B	1.83B	2.33B	2.17B	2.05B
EBITDA	816.90M	737.40M	786.20M	1.30B	1.19B	1.04B
Net Income	99.20M	339.90M	1.32B	736.50M	739.60M	552.40M
Balance Sheet
Total Assets	12.30B	11.65B	11.93B	11.17B	10.58B	10.19B
Cash, Cash Equivalents and Short-Term Investments	438.20M	357.30M	302.40M	572.00M	516.80M	568.90M
Total Debt	4.16B	3.50B	4.11B	3.27B	3.17B	3.27B
Total Liabilities	7.87B	7.14B	7.49B	7.77B	7.53B	7.20B
Stockholders Equity	4.43B	4.49B	4.41B	3.40B	3.05B	2.98B
Cash Flow
Free Cash Flow	-7.30M	603.20M	-520.30M	440.10M	720.00M	580.60M
Operating Cash Flow	61.60M	671.10M	-386.40M	582.40M	820.10M	647.80M
Investing Cash Flow	265.20M	263.60M	-154.40M	-266.40M	-112.00M	-169.30M
Financing Cash Flow	-402.70M	-870.10M	331.50M	-237.40M	-747.90M	-250.30M

FMC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 37.29 is below the 20-day moving average (MA) of 38.03, below the 50-day MA of 40.31, and below the 200-day MA of 42.78, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, 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	72 Outperform	$14.16B	11.43	24.98%	2.38%	9.53%	36.15%
MOS	66 Neutral	$10.55B	11.28	7.80%	2.64%	-7.71%	297.49%
ICL	64 Neutral	$8.08B	22.01	6.24%	2.93%	-1.22%	-14.31%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
FMC	58 Neutral	$4.66B	47.04	2.88%	6.22%	1.16%	-92.85%
SMG	52 Neutral	$3.48B	78.47	4.98%	4.21%	-2.05%	―
USBC	28 Underperform	$378.89M	―		―	―	42.75%

FMC Corporate Events

FMC Completes $750 Million Subordinated Notes Sale

On May 27, 2025, FMC Corporation completed the sale of $750 million in subordinated notes, which are set to mature in 2055. The notes, governed by a subordinated indenture, offer an 8.450% interest rate until 2030, after which the rate will reset every five years based on the U.S. Treasury Rate plus a spread, but not below 8.450%. The proceeds from this offering will be used to redeem existing senior notes and for general corporate purposes, impacting the company’s debt structure and financial obligations.

FMC Announces $750M Subordinated Notes Issuance

On May 19, 2025, FMC Corporation entered into an Underwriting Agreement with several underwriters to issue and sell $750 million of 8.450% Fixed-to-Fixed Reset Rate Subordinated Notes due 2055. The transaction is expected to close on May 27, 2025, with net proceeds of approximately $741 million anticipated after expenses. This move is part of FMC’s strategic financial operations, potentially impacting its financial structure and providing capital for future initiatives.