FMC Key Financial Metrics & Ratios

Summary

Business

Earnings Call

Valuation

Profitability

Financial Health

10Y annualized return is negative at -2.1% per year

FMC has met or exceeded earnings expectations in the majority of recent quarters (7/10)

Attractive Price-to-Earnings Ratio

Reasonable Price-to-Sales Ratio

Strong Gross Profit Margin

Solid Operating Profit Margin

Strong Current and Quick Ratios

Manageable Debt Levels

🚀 Strong Focus on Core and Growth Portfolio

💰 Cost Reduction and Restructuring Success

📈 Robust Product Pipeline

🌱 Growth Opportunities in New Markets

🔬 Innovation Potential with New Active Ingredients

📊 Strong Long-Term Financial Targets

High EV/EBITDA Ratio

Modest Net Profit Margin

Low Cash Ratio

📉 Inventory Management Challenges

⚠️ Competitive Pressures from Generics

⏳ Short-Term Financial Performance Pressure

💸 FX Headwinds Impacting Profitability

FMC Corporation is positioned with a strong business model driven by a focus on core and growth portfolios, successful cost management, and a robust product pipeline. However, challenges in inventory management and increased competition from generics raise concerns about short-term performance. Looking ahead, there are promising growth opportunities linked to new products and market strategies, but the company may face pressures in the immediate future.

Analysis Date: February 4, 2025
Last Updated: March 12, 2025

-19%

-2.1% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US

Exchange NYSE

Industry Agricultural Inputs

Sector Basic Materials

Market Cap $6.20B

CEO Dr. Pierre R. Brondeau Ph.D.

FMC Corporation is a company that helps farmers grow healthier crops. They make products like insect sprays, weed killers, and plant nutrients to protect plants from pests and diseases. Their products are used in fields to improve the quantity and quality of crops, and they also provide solutions for pest control in places like parks and golf courses. Founded in 1883 and based in Philadelphia, FMC operates in many countries around the world.

Streams of revenue

Insecticides: 61%

Herbicides: 26%

Fungicides: 8%

Plant Health: 5%

Geographic Distribution

Latin America: 47%

North America: 22%

Asia Pacific: 18%

EMEA: 13%

Core Products

🦠

Biologicals Biological pest control

🌱

Plant Health Nutrient management

🌾

Crop Protection Pest control solutions

🐜

Professional Pest Management Pest control products

Business Type

Business to Business

Competitive Advantages

♻️

Sustainability Focus FMC's commitment to sustainable agricultural practices positions it favorably in a market increasingly driven by environmental concerns.

🌍

Global Market Presence FMC operates in multiple regions, reducing dependency on any single market and allowing for a broader customer base and revenue stream.

🔬

Strong R&D Capabilities FMC invests heavily in research and development to innovate and create effective crop protection solutions, maintaining a technological edge over competitors.

🌱

Diverse Product Portfolio The company's wide range of products, including insecticides, herbicides, and biologicals, allows it to cater to various agricultural needs and markets.

🤝

Established Relationships with Distributors Long-standing partnerships with distributors and sales representatives enhance market reach and customer trust, making it difficult for new entrants to compete.

Key Business Risks

📉

Market Fluctuations Volatility in agricultural commodity prices can affect demand for crop protection products.

🌍

Environmental Impact Increased scrutiny and activism regarding environmental sustainability may lead to reputational damage and regulatory challenges.

⚖️

Regulatory Compliance Changes in agricultural regulations and safety standards can impact product development and market access.

🔗

Supply Chain Disruptions Global supply chain issues can impact the availability of raw materials and distribution of products.

🏁

Competition and Innovation Intense competition and rapid technological advancements require continuous investment in research and development to maintain market position.

Bronstein, Gewirtz & Grossman, LLC Is Investigating FMC Corporation (FMC) And Encourages Stockholders to Connect

NEW YORK CITY, NY / ACCESS Newswire / April 22, 2025 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of...

FMC Corporation (FMC) Investigation: Bronstein, Gewirtz & Grossman, LLC Encourages Stockholders to Contact the Firm to Learn More About the Investigation

NEW YORK CITY, NY / ACCESS Newswire / April 20, 2025 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of...

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.

Intrinsic Value

Estimated fair value based on Graham's formula

$46.59

Current Market Price: $35.41

IV/P Ratio: 1.32x (>1.0 indicates undervalued)

Margin of Safety

Gap between intrinsic value and market price

24.0%

Graham recommended a minimum of 20-30% margin of safety

Higher values indicate a greater potential discount to fair value

Graham Criteria Checklist

Benjamin Graham's value investing checklist for FMC

Positive earnings (5+ years)

Dividend history (5+ years)

P/E ratio ≤ 20 (13.00)

P/B ratio ≤ 1.5 (0.99)

Current ratio ≥ 2.0 (1.64x)

Long-term debt < Net current assets (1.62x)

Margin of safety (24.0%)

FMC does not meet all Graham criteria

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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About Profitability Metrics

Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

Return on Equity (ROE)

Measures how efficiently a company uses its equity to generate profits

7.59%

10% 15%

Higher values indicate better returns for shareholders

TTM (as of 2025-04-30)

Gross Profit Margin

Percentage of revenue retained after accounting for cost of goods sold

38.95%

20% 40%

Higher values indicate better efficiency in production

TTM (as of 2025-04-30)

Net Profit Margin

Percentage of revenue retained after accounting for all expenses

8.03%

8% 15%

Higher values indicate better overall profitability

TTM (as of 2025-04-30)

Strong Gross Profit Margin

38.95

Gross Profit Margin

FMC's gross profit margin of 38.95% indicates effective cost management and strong pricing power in its operations, which is a positive indicator of profitability.

Solid Operating Profit Margin

10.25

Operating Profit Margin

An operating profit margin of 10.25% demonstrates that FMC is able to retain a good portion of revenue after covering operational costs, reflecting efficient operations.

Modest Net Profit Margin

8.03

Net Profit Margin

The net profit margin at 8.03% indicates that while FMC is profitable, its ability to convert sales into actual profit is relatively modest compared to competitors.

About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

Debt to Equity Ratio

Total debt divided by total equity

0.78x

1.0x 2.0x

Lower values indicate less financial leverage and risk

Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk

Q4 2024

Current Ratio

Current assets divided by current liabilities

1.64x

1.0x 2.0x

Higher values indicate better short-term liquidity

Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good

Q4 2024

Strong Current and Quick Ratios

1.64

Current Ratio

1.24

Quick Ratio

FMC's current ratio of 1.64 and quick ratio of 1.24 indicate that the company has a strong liquidity position, suggesting it can easily meet its short-term obligations.

Manageable Debt Levels

0.78

Debt-to-Equity Ratio

With a debt-to-equity ratio of 0.78, FMC has a balanced approach to leveraging, which suggests a stable financial structure without excessive reliance on debt.

Low Cash Ratio

0.12

Cash Ratio

The cash ratio of 0.12 indicates that FMC has limited cash available to cover current liabilities, which may pose a risk if immediate liquidity is required.

Meeting Expectations

7 /10

Higher values indicate better execution and credibility

🚀 Strong Focus on Core and Growth Portfolio

Expected to grow from 19% to 30% of total company sales by 2027.

Growth Portfolio Contribution

FMC is actively segmenting its products into core and growth portfolios, which allows for targeted strategies and better resource allocation. The company plans to leverage its core portfolio while investing in new active ingredients to drive future growth.

💰 Cost Reduction and Restructuring Success

27.7%, an all-time Q4 high.

EBITDA Margin Q4 2024

The company exceeded its restructuring savings target, achieving $165 million in net savings for 2024, which has helped improve operating margins and create a more agile cost structure.

📈 Robust Product Pipeline

$600 million.

Projected Sales for New AIs by 2027

FMC has a strong pipeline of new active ingredients and formulations in development, which are expected to significantly contribute to sales growth. Products like fluindapyr and Isoflex are positioned well in the market.

📉 Inventory Management Challenges

Expected to decline by 16% year-over-year.

Projected Revenue Decline Q1 2025

FMC has identified elevated inventory levels in various regions, particularly in LATAM and Asia, which could hinder sales growth in the short term as the company prioritizes reducing channel inventory.

⚠️ Competitive Pressures from Generics

3% in 2025, primarily due to contract adjustments.

Forecasted Price Decline

The upcoming patent expirations for key products like Rynaxypyr will lead to increased competition from generics, potentially impacting market share and pricing power.

🌱 Growth Opportunities in New Markets

Mid-20% range out to 2027.

Expected Growth Rate of Plant Health

The company is exploring new routes to market, especially in LATAM, which is expected to enhance its sales capabilities and customer reach, particularly with new products.

🔬 Innovation Potential with New Active Ingredients

Exceeds $2 billion.

Addressable Market for Fluindapyr

FMC's pipeline of new active ingredients, including Dodhylex and Isoflex, shows high potential for revenue growth and market expansion, especially in underserved segments.

📊 Strong Long-Term Financial Targets

$5.2 billion.

Projected 2027 Sales

23%.

Projected EBITDA Margin 2027

FMC has set ambitious targets for 2027, forecasting substantial growth in both revenue and EBITDA, indicating confidence in its strategic direction.

⏳ Short-Term Financial Performance Pressure

$870 million to $950 million.

Expected Full-Year EBITDA 2025

The aggressive inventory reduction strategies and necessary investments for new routes to market are expected to negatively impact financial performance in 2025, creating uncertainty in the short term.

💸 FX Headwinds Impacting Profitability

$65 million to $75 million.

Estimated FX Headwind

FMC anticipates significant foreign exchange headwinds in 2025, which could further complicate its financial recovery and growth trajectory.