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Fmc Corp. (FMC)
NYSE:FMC
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FMC
(NYSE:FMC)63Neutral
Positive Factors
Earnings
Q4 adjusted EPS of $1.79 was $0.23 above estimate, with operating profit contributing significantly.
Product Sales
Cyazypr product sales likely increase 13-16% annually in 2026 and 2027, supported by its complexity and difficulty to copy.
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.
Financial Performance
The price target has been reduced from $70 to $46 on lower EBITDA and a lower target multiple, reflecting ongoing financial performance challenges.
Guidance
FMC's 1Q25 and full year 2025 guidance is well below forecast, reflecting renewed destocking pressures and weaker pricing.
FMC (FMC) vs. S&P 500 (SPY)
Market Cap
$4.57B
Dividend Yield6.53%
Average Volume (3M)3.47M
Price to Earnings (P/E)13.5
Beta (1Y)0.75
Revenue Growth-5.36%
EPS Growth-74.25%
CountryUS
Employees6,600
SectorBasic Materials
Sector Strength56
IndustryAgriculture
Share Statistics
EPS (TTM)2.71
Shares Outstanding124,840,904
10 Day Avg. Volume2,561,305
30 Day Avg. Volume3,469,393
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)1.04
Price to Cash Flow (P/CF)2.60
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.00Price Target Upside31.15% Upside
Rating ConsensusHold
Number of Analyst Covering15
FMC Business Overview & Revenue Model
Company DescriptionFMC Corp. engages in the provision of solutions, applications, and products for the agricultural, industrial, and consumer markets. It operates through the following segment: FMC Agricultural Solutions. The FMC Agricultural Solutions segment develops, markets and sells all three major classes of crop protection chemicals: insecticides, herbicides and fungicides, which are used to enhance crop yield and quality. The company was founded by John Bean in 1883 and is headquartered in Philadelphia, PA.
How the Company Makes MoneyFMC 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.58
Neutral
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.75
Positive
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.70
Positive
| 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 |
| 9.40M | 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 | |||
| 660.00M | -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
Negative
36.60
Price Trends
46.23
Negative
52.48
Negative
55.89
Negative
Market Momentum
-3.14
Negative
31.28
Neutral
17.09
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 36.6 is below the 20-day moving average (MA) of 37.75, below the 50-day MA of 46.23, and below the 200-day MA of 55.89, indicating a bearish trend. The MACD of -3.14 indicates Negative momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
FMC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $10.72B | 12.13 | 15.66% | 3.45% | 1.91% | 2.94% | |
70 Outperform | $32.48B | 46.48 | 3.33% | 1.93% | 2.64% | 80.37% | |
67 Neutral | $70.34B | 18.36 | 22.98% | 2.24% | -3.12% | 64.53% | |
63 Neutral | $4.57B | 13.50 | -0.06% | 6.53% | -5.36% | -74.25% | |
56 Neutral | $23.74B | 17.67 | 10.91% | 7.18% | -1.46% | -36.00% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% | |
42 Neutral | $8.48B | ― | -13.21% | 2.30% | -44.08% | -183.44% |
* Basic Materials Sector Average
Performance Comparison
FMC
FMC
36.60
-22.48
-38.05%
APD
Air Products and Chemicals
305.35
68.55
28.95%
ALB
Albemarle
72.16
-45.60
-38.72%
EMN
Eastman Chemical
93.11
8.87
10.53%
LYB
LyondellBasell
73.47
-22.19
-23.20%
DD
DuPont de Nemours
77.69
8.72
12.64%
FMC Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -32.27% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant restructuring savings and strong growth in the Plant Health business and new product pipeline. However, these positives are offset by challenges related to high inventory levels, pricing pressures, weaker than expected Q4 revenue, and substantial FX headwinds. Overall, the call reflects a cautious outlook with a focus on repositioning for future growth.Highlights
Strong Restructuring Savings
Exceeded restructuring targets with $165 million in net savings delivered in 2024, and a clear line-of-sight to more than $250 million in run-rate savings by the end of 2025.
Plant Health Business Growth
The Plant Health business grew by 33% in Q4, driven mainly by the Biologicals segment, with expectations for continued mid-20% annual growth.
New Product Pipeline Progress
Fluindapyr and Isoflex active ingredients are expected to reach $150 million and $100 million in sales by 2025, respectively, with significant growth projected by 2027.
Lowlights
Inventory and Channel Challenges
High levels of inventory in key regions like LATAM and Asia, requiring aggressive actions to reduce channel inventory that will impact 2025 financial performance.
Pricing Pressures
Anticipated price declines of 3% in 2025, mainly due to cost-plus contracts with diamide partners, alongside competitive pricing pressures in key markets.
Weaker Than Expected Q4 Revenue
Q4 revenue of $1.22 billion was below guidance, with LATAM sales being particularly disappointing due to competition and credit risks.
FX Headwinds
FX was a 5% headwind to Q4 revenue, and is expected to be a low-to-mid-single-digit headwind for revenue in 2025, with a significant $65-$75 million impact on EBITDA.
Company Guidance
During the Fourth Quarter 2024 Earnings Call, FMC Corporation outlined its guidance for 2025, focusing on several key metrics and strategic initiatives. The company anticipates full-year sales ranging from $4.15 billion to $4.35 billion, with an expected flat growth at the midpoint compared to 2024, despite the loss of approximately $110 million in sales from the Global Specialty Solutions divestiture. FMC projects an adjusted EBITDA between $870 million and $950 million, marking a 1% increase at the midpoint. The company also expects adjusted earnings per share to range from $3.26 to $3.70. FMC plans to reduce channel inventory significantly and is committed to decreasing inventory levels more than initially expected, which is anticipated to negatively impact 2025 financial performance. Additionally, FMC is implementing a newly developed strategy for its Rynaxypyr and Cyazypyr products and increasing investments in commercial development for new active ingredients. The company projects a 3% pricing decline, primarily due to contract adjustments with diamide partners based on reduced manufacturing costs. FX is expected to present a low to mid-single-digit headwind, impacting both sales and EBITDA. Despite these challenges, FMC is targeting significant growth in 2026 and 2027, with a focus on expanding its growth portfolio, including new active ingredients and plant health platforms.FMC Corporate Events
Executive/Board Changes
FMC Appoints Anthony DiSilvestro to Board of Directors
Positive
Dec 12, 2024
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.
Executive/Board Changes
FMC Implements Executive Severance Plan for Executives
Neutral
Dec 11, 2024
FMC Corporation’s Compensation Committee has implemented an executive severance plan for selected executives, including top officials such as the CEO and CFO. The plan details severance benefits based on employment termination scenarios, with specific conditions for changes in company control, and includes cash payments, bonuses, and healthcare contributions, aiming to ensure smooth transitions and protect company interests with restrictive covenants.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.