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Fmc Corp. (FMC)
NYSE:FMC
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FMC
(NYSE:FMC)
Rating:71Outperform
Price Target:
$47.00
▲(11.14%Upside)
Positive Factors
Financial Performance
Updated FX rates increase revenue, which benefits the company's financial performance.
Sales Growth
The new direct-to-grower corn/soy sales channel in Brazil may boost volume recovery.
Negative Factors
Competition
The company is seeing increased generic competition for Rynaxypyr in China, India, Eastern Europe and South America, pressuring both pricing and volumes.
Market Expectations
The 2026 EPS consensus is higher than the revised estimate, suggesting challenges in meeting market expectations.
Sales and Earnings 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 (FMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.48B
Dividend Yield5.28%
Average Volume (3M)1.52M
Price to Earnings (P/E)16.9
Beta (1Y)0.91
Revenue Growth1.45%
EPS Growth-70.85%
CountryUS
Employees5,700
SectorBasic Materials
Sector Strength73
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.18
Shares Outstanding124,909,225
10 Day Avg. Volume1,464,552
30 Day Avg. Volume1,516,424
Financial Highlights & Ratios
PEG Ratio-4.48
Price to Book (P/B)1.23
Price to Sales (P/S)0.00
P/FCF Ratio27.17
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit8.19
Enterprise Value/Ebitda12.18
Forecast
1Y Price Target
$47.89Price Target Upside13.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
FMC Business Overview & Revenue Model
Company DescriptionFMC Corporation (FMC) is a global agricultural sciences company that provides innovative solutions to growers worldwide. The company operates primarily in the agricultural sector, offering a diverse portfolio of crop protection products, including insecticides, herbicides, and fungicides. FMC is committed to advancing sustainable agriculture through its research and development efforts, delivering technologies that enhance crop yield and quality while minimizing environmental impact.
How the Company Makes MoneyFMC Corporation generates revenue primarily through the sale of its crop protection products. These products are sold to distributors and directly to farmers, helping protect crops from pests, weeds, and diseases. The company's revenue streams are diversified across various geographic regions, allowing it to capitalize on agricultural cycles and market demands globally. FMC also invests in research and development to innovate and introduce new products, which can command premium pricing. Strategic partnerships and collaborations with other agricultural and chemical companies further enhance its product offerings and market reach, contributing to its earnings.
FMC Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
Main Street Data
Main Street DataFMC Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 2.27%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable progress in strategic initiatives and a positive outlook for the second half of 2025, driven by new product launches and market expansions. However, the company faced significant challenges in Q1 with sales declines, tariff impacts, and regional performance issues, particularly in North America, Asia, and EMEA.Q1-2025 Updates
Positive Updates
Strong Progress in Key Focus Areas
FMC made significant advancements in four critical focus areas: aligning channel inventory levels, implementing a post-patent strategy, establishing a new route to market in Brazil, and ensuring resources for the growth portfolio, particularly with Rynaxypyr.
New Product Launches and Market Expansion
FMC introduced new formulations of Rynaxypyr and Bifenthrin, with expected sales of $200-$250 million in 2025. Additionally, the company is launching new products in Brazil, targeting large corn and soybean growers, expected to provide a multi-hundred million dollar growth opportunity.
Growth in Plant Health Segment
The Plant Health business outperformed the portfolio with sales up 1% versus the prior year, driven by biologicals. The recent registration of Sofero pheromone in Brazil is expected to boost sales further.
Positive Outlook for Second Half of 2025
FMC expects strong growth in the second half of 2025, driven by new products, a new route to market in Brazil, and improved channel inventory levels. The company anticipates a revenue growth of 7% and EBITDA growth of 11% in the second half.
Negative Updates
Sales Decline in Q1 2025
Company sales declined 14% versus the prior year, with pricing down 9% and a 4% FX headwind. Volume was down 1%, with North America experiencing a 28% sales decline due to cautious purchasing patterns.
Impact of Tariffs and FX Headwinds
FMC is facing a $15-$20 million headwind from newly announced tariffs, and FX was a 4% headwind to revenue growth in Q1, driven by the Brazilian real and European currencies.
Challenges in Asia and EMEA
Asia sales declined 21%, and EMEA reported a 7% lower sales, excluding currency impacts. The decline in EMEA was largely due to the expected loss of registration for triflusulfuron herbicide.
Company Guidance
During the First Quarter 2025 Earnings Call for FMC Corporation, the company provided guidance indicating a positive outlook for the second half of the year despite some early challenges. The company anticipates a revenue decline of 2% in the second quarter, with lower pricing and a foreign exchange headwind, but expects growth in the second half driven by cost favorability and new product sales. Specifically, full-year sales are expected to be flat, with adjusted EBITDA projected to grow 1% and adjusted earnings per share remaining flat. The call highlighted strategic efforts, such as reducing channel inventory, implementing a post-patent strategy, and establishing a new route to market in Brazil. The latter is expected to capitalize on a multi-hundred million dollar growth opportunity by selling directly to large corn and soybean growers. Additionally, significant growth is anticipated from new products like Rynaxypyr mixtures, with sales projected to reach $200 million to $250 million in 2025. Despite facing a $15 million to $20 million cost headwind from tariffs, the company remains confident in its ability to achieve its financial targets for 2025.FMC Financial Statement Overview
Summary
FMC's financial performance indicates moderate health with notable challenges. Revenue and profit margins have declined, highlighting issues in growth and operational efficiency. While the balance sheet is stable with manageable debt, the significant decline in free cash flow suggests potential liquidity concerns.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.65
Positive
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.70
Positive
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.55
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.25B | 4.49B | 5.80B | 5.05B | 4.64B |
| Gross Profit | 1.65B | 1.83B | 2.33B | 2.17B | 2.05B |
| EBITDA | 737.40M | 786.20M | 1.30B | 1.19B | 1.04B |
| Net Income | 339.90M | 1.32B | 736.50M | 739.60M | 552.40M |
Balance Sheet | |||||
| Total Assets | 11.65B | 11.93B | 11.17B | 10.58B | 10.19B |
| Cash, Cash Equivalents and Short-Term Investments | 357.30M | 302.40M | 572.00M | 516.80M | 568.90M |
| Total Debt | 3.50B | 4.11B | 3.27B | 3.17B | 3.27B |
| 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
Neutral
42.29
Price Trends
41.32
Positive
39.98
Positive
45.78
Negative
Market Momentum
0.34
Positive
50.14
Neutral
69.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMC, the sentiment is Neutral. The current price of 42.29 is below the 20-day moving average (MA) of 42.75, above the 50-day MA of 41.32, and below the 200-day MA of 45.78, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FMC.
FMC Risk Analysis
FMC disclosed 33 risk factors in its most recent earnings report. FMC reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
In Argentina, continued inflation and foreign exchange controls could adversely affect our business Q2, 2022
FMC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $15.18B | 12.36 | 26.14% | 2.13% | 0.66% | 25.75% | |
73 Outperform | $50.41B | 45.06 | 4.66% | 0.93% | >-0.01% | 108.45% | |
71 Outperform | $5.48B | 16.85 | 8.81% | 5.28% | 1.45% | -70.85% | |
70 Neutral | $9.07B | 23.32 | 6.70% | 2.63% | -3.48% | -18.34% | |
69 Neutral | $11.79B | 32.09 | 3.09% | 2.88% | -13.37% | -50.63% | |
57 Neutral | $3.97B | 137.18 | 4.98% | 3.77% | 0.75% | ― | |
44 Neutral | C$994.00M | -6.64 | -13.68% | 1.83% | 17.55% | -32.71% |
* Basic Materials Sector Average
Performance Comparison
FMC
FMC
42.29
-13.87
-24.70%
CF
Cf Industries Holdings
93.50
21.74
30.30%
MOS
Mosaic Co
37.39
8.98
31.61%
SMG
Scotts Miracle-Gro Company
68.38
2.71
4.13%
ICL
Icl
6.84
2.39
53.71%
CTVA
Corteva
73.12
18.44
33.72%
FMC Corporate Events
Private Placements and Financing
FMC Completes $750 Million Subordinated Notes Sale
Neutral
May 28, 2025
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.
The most recent analyst rating on (FMC) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on FMC stock, see the FMC Stock Forecast page.
Private Placements and FinancingBusiness Operations and Strategy
FMC Announces $750M Subordinated Notes Issuance
Neutral
May 21, 2025
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.
The most recent analyst rating on (FMC) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on FMC stock, see the FMC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.