NYSE:FMC

Stock Analysis Report

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Executive Summary

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. More Details


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has FMC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FMC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

FMC

3.4%

US Chemicals

2.8%

US Market


1 Year Return

18.1%

FMC

16.3%

US Chemicals

20.9%

US Market

Return vs Industry: FMC exceeded the US Chemicals industry which returned 16.4% over the past year.

Return vs Market: FMC underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

FMCIndustryMarket
7 Day1.7%3.4%2.8%
30 Day11.6%15.0%11.1%
90 Day6.0%11.8%6.5%
1 Year20.3%18.1%19.1%16.3%23.6%20.9%
3 Year48.9%23.1%24.9%1.8%47.3%37.6%
5 Year237.9%172.5%77.5%35.8%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is FMC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FMC undervalued compared to its fair value and its price relative to the market?

26.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FMC ($115.67) is trading above our estimate of fair value ($103.32)

Significantly Below Fair Value: FMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FMC is good value based on its PE Ratio (26.4x) compared to the US Chemicals industry average (29.7x).

PE vs Market: FMC is poor value based on its PE Ratio (26.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FMC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: FMC is overvalued based on its PB Ratio (5.1x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is FMC forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMC's forecast earnings growth (13% per year) is above the savings rate (2.2%).

Earnings vs Market: FMC's earnings (13% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: FMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: FMC's revenue (5.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FMC's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMC's Return on Equity is forecast to be high in 3 years time (30.2%)


Next Steps

Past Performance

How has FMC performed over the past 5 years?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMC has a large one-off loss of $271.8M impacting its September 30 2020 financial results.

Growing Profit Margin: FMC's current net profit margins (12.1%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: FMC's earnings have grown significantly by 55.6% per year over the past 5 years.

Accelerating Growth: FMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FMC had negative earnings growth (-14.2%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: FMC's Return on Equity (19.2%) is considered low.


Next Steps

Financial Health

How is FMC's financial position?


Financial Position Analysis

Short Term Liabilities: FMC's short term assets ($4.0B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: FMC's short term assets ($4.0B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: FMC's debt to equity ratio (108.7%) is considered high.

Reducing Debt: FMC's debt to equity ratio has increased from 99.4% to 108.7% over the past 5 years.

Debt Coverage: FMC's debt is well covered by operating cash flow (21.9%).

Interest Coverage: FMC's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Next Steps

Dividend

What is FMC current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMC's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FMC's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

Stable Dividend: FMC's dividends per share have been stable in the past 10 years.

Growing Dividend: FMC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.2%), FMC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMC's dividends in 3 years are forecast to be well covered by earnings (23.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Mark Douglas (58 yo)

0.42

Tenure

US$3,914,161

Compensation

Mr. Mark A. Douglas has been Chief Executive Officer of FMC Corporation since June 1, 2020. Mr. Douglas has been President and Director at FMC Corporation since June 01, 2018 and April 28, 2020 respectivel...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.91M) is below average for companies of similar size in the US market ($USD10.83M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pierre Brondeau
Executive Chairman of the Board10.08yrsUS$11.54m0.12%
$ 18.1m
Mark Douglas
President0.42yrUS$3.91m0.056%
$ 8.4m
Andrew Sandifer
Executive VP & CFO2.5yrsUS$2.37m0.020%
$ 3.1m
Michael Reilly
Executive VP1.58yrsUS$2.24m0.011%
$ 1.6m
Nicholas Pfeiffer
VP, Corporate Controller & Chief Accounting Officerno datano data0.0099%
$ 1.5m
Kathleen Shelton
VP & CTO2.42yrsno datano data
David Kotch
VP & Chief Information Officer13.33yrsno datano data
Michael Wherley
Director of Investor Relationsno datano datano data
Kenneth Gedaka
Vice President of Communications & Public Affairs9.17yrsno datano data
Diane Allemang
VP & Chief Marketing Officer2.42yrsno datano data
Kyle Matthews
Vice President of Human Resources & Chief Human Resources Officer6.08yrsno datano data
Marc Hullebroeck
President of FMC EMEAno datano datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Management: FMC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pierre Brondeau
Executive Chairman of the Board10.08yrsUS$11.54m0.12%
$ 18.1m
Mark Douglas
President0.42yrUS$3.91m0.056%
$ 8.4m
C. Greer
Independent Director17.92yrsUS$278.06k0.032%
$ 4.9m
Paul Norris
Independent Director14.83yrsUS$357.01k0.0054%
$ 809.0k
William Powell
Independent Director9.42yrsUS$273.47k0.013%
$ 2.0m
Robert Pallash
Independent Director12.58yrsUS$296.30kno data
Eduardo Cordeiro
Independent Director9.42yrsUS$294.96k0.020%
$ 2.9m
Vincent Volpe
Lead Independent Director2.58yrsUS$351.15k0%
$ 0
Carol Davidson
Director0.33yrno data0.0014%
$ 216.1k
Margareth Ovrum
Independent Director4.33yrsUS$249.94kno data
K'Lynne Johnson
Independent Director7.17yrsUS$281.07k0.017%
$ 2.6m
Dirk Kempthorne
Independent Director11.58yrsUS$312.01k0.032%
$ 4.8m

9.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: FMC's board of directors are considered experienced (9.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FMC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FMC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FMC Corporation
  • Ticker: FMC
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$15.009b
  • Shares outstanding: 129.76m
  • Website: https://www.fmc.com

Number of Employees


Location

  • FMC Corporation
  • 2929 Walnut Street
  • Philadelphia
  • Pennsylvania
  • 19104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
FMQDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0IK3LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
F1MC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. The company develop, markets, and sells crop protection chemic...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:22
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.