FMC (FMC) AI Stock Analysis

• Market Cap: $4.28B
• Dividend Yield: 7%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 43.5
• Beta (1Y): 0.87
• Revenue Growth: 1.16%
• EPS Growth: -92.85%
• Country: US
• Employees: 5,700
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 0.69
• Shares Outstanding: 124,911,580
• 10 Day Avg. Volume: 2,073,824
• 30 Day Avg. Volume: 1,742,084
• PEG Ratio: -0.24
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 12.79
• 1Y Price Target: $45.70
• Price Target Upside: 37.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $39.00 ▲(17.65% Upside)

FMC's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a high valuation. The earnings call provided some positive outlooks, particularly in new product growth and regional performance, but challenges in key markets and pricing pressures weigh on the score.

Positive Factors

Strong EMEA Growth

Strong growth in the EMEA region indicates successful market penetration and product acceptance, which can drive sustained revenue growth and strengthen FMC's competitive position in this key market.

Successful Debt Management

Effective debt management enhances financial stability and flexibility, allowing FMC to invest in growth opportunities without increasing leverage, which is crucial for long-term sustainability.

Promising New Product Outlook

The introduction of new products like fluindapyr and Isoflex can drive future revenue growth and market expansion, reinforcing FMC's innovation-driven business model and competitive edge.

Negative Factors

Challenges in India Market

Exiting the Indian market due to competitive pressures and patent enforcement issues could limit FMC's growth potential in a significant agricultural market, impacting long-term revenue prospects.

Pricing Pressures

Ongoing pricing pressures can erode profit margins and affect revenue stability, posing a challenge to maintaining competitive pricing strategies in the long term.

North America Sales Decline

A decline in North American sales suggests potential market saturation or competitive challenges, which could hinder FMC's ability to sustain growth in this key region over time.

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 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	713.00M	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	250.80M	263.60M	-154.40M	-266.40M	-112.00M	-169.30M
Financing Cash Flow	-325.10M	-870.10M	331.50M	-237.40M	-747.90M	-250.30M

FMC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 33.15 is below the 20-day moving average (MA) of 37.01, below the 50-day MA of 38.48, and below the 200-day MA of 41.34, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 25.99 is Positive, neither overbought nor oversold. The STOCH value of 1.83 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	14.84B	11.98	26.23%	2.23%	9.53%	36.15%
MOS	65 Neutral	11.40B	12.18	7.56%	2.50%	-7.71%	297.49%
ICL	63 Neutral	7.92B	21.59	6.10%	2.97%	-1.22%	-14.31%
FMC	58 Neutral	$4.28B	43.46	2.88%	7.00%	1.16%	-92.85%
SMG	52 Neutral	3.31B	74.73	-31.07%	4.67%	-2.05%	―
USBC	28 Underperform	446.37M	-0.26	―	―	―	42.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%