FMC Corporation

FMC

$12.98

-2.63%

N/A-$0.35

Basic Materials

Agricultural Inputs

NYSE

Active Trading

FMC Corporation functions as an agricultural science enterprise, delivering products for crop safeguarding, plant wellness, and professional pest and turf management. The ...

Fundamental Analysis of FMC

Key Strengths

Pure-play focus on high-margin crop protection chemicals, including insecticides, herbicides, and fungicides

Diversified product portfolio with biologicals, crop nutrition, and seed treatment solutions

Risk Factors

Extremely high leverage with debt-to-equity ratio of 2.615 and net debt-to-EBITDA of -7.904

Severe profitability crisis with net margin of -84.8% and negative return on equity of -118.6%

Profitability

Net Margin-84.83%

Operating Margin-71.60%

Valuation

P/E Ratio-0.59x

Current Ratio1.99

Efficiency

ROE-118.57%

ROA-30.16%

Fundamental Analysis of FMC

FMC Corporation, a leading agricultural sciences company specializing in crop protection chemicals, has experienced severe financial distress over the past year. The stock has plummeted from a 52-week high of $40.84 to approximately $10.30, reflecting a dramatic deterioration in fundamentals. The company reported a net loss per share of -$22.01 over the trailing twelve months, driven by significant impairments and operational challenges. Revenue per share stands at $25.95, but the net profit margin is an alarming -84.8%, indicating that the company is burning cash at an unsustainable rate. The balance sheet is highly leveraged, with a debt-to-equity ratio of 2.615 and a debt-to-capital ratio of 0.723, leading to a negative interest coverage ratio of -1.407. The operating cash flow per share has turned negative at -$1.12, though free cash flow per share is slightly positive at $1.32, largely due to unusually low capital expenditures. The company's return on equity is -118.6%, and the price-to-book ratio of 0.788 suggests the market is pricing in significant asset devaluation or potential bankruptcy risk. However, FMC maintains a current ratio of 1.987 and a quick ratio of 1.479, indicating adequate short-term liquidity. The company still generates revenue from its diverse product portfolio, including insecticides, herbicides, and fungicides, and its pure-play focus on crop protection provides some strategic clarity. Management has initiated restructuring efforts to reduce costs and streamline operations. The dividend yield is 8% despite a -6.4% payout ratio, suggesting the dividend is not covered by earnings. Analysts remain cautious, citing high leverage, negative profitability, and legal uncertainties, though the low valuation and potential for operational improvement could attract contrarian investors. The fundamental outlook is highly uncertain, with significant downside risks if agricultural demand weakens further or if the company faces additional litigation or refinancing challenges.

Key Strengths of FMC

Pure-play focus on high-margin crop protection chemicals, including insecticides, herbicides, and fungicides
Diversified product portfolio with biologicals, crop nutrition, and seed treatment solutions
Global operational footprint across North America, Latin America, Europe, and Asia
Long history since 1883 with established relationships with distributors and alliance partners
Currently trading at a low price-to-book ratio of 0.788, potentially indicating undervaluation
Strong current ratio of 1.987 and quick ratio of 1.479, providing short-term liquidity cushion
Committed to innovation with R&D spending at 7.9% of revenue, supporting future product development

Risk Factors of FMC

Extremely high leverage with debt-to-equity ratio of 2.615 and net debt-to-EBITDA of -7.904
Severe profitability crisis with net margin of -84.8% and negative return on equity of -118.6%
Negative operating cash flow per share and negative interest coverage ratio, indicating financial distress
Stock price collapse of over 75% from 52-week high, reflecting deteriorating confidence
Ongoing securities litigation and leadership turnover, adding legal and operational uncertainty
Dividend payout ratio of -6.4%, meaning the dividend is not covered by earnings, risking future cuts
High inventory days (209.8) and cash conversion cycle (328.1), indicating working capital inefficiencies
Industry cyclicality and reliance on agricultural commodity prices, which could pressure demand further

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$1.63B

-0.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin35.29%

Net Profit Margin-84.83%

Debt/Equity Ratio2.62

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of FMC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of FMC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-21.52%	—	—	Flat
Operating Margin	—	-13.80%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of FMC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	1.987	—	—	Flat
Quick Ratio	—	1.479	—	—	Flat
Debt / Equity	—	2.615	—	—	Flat

Valuation of FMC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-1.94x	—	—	Flat
P/B	—	0.88x	—	—	Flat

Supply Chain of FMC

RELATIONS

Upstream

UPL LtdNSE:UPLMultiple Chinese chemical manufacturers (anonymous contract manufacturers)Multiple Indian chemical manufacturers (anonymous contract manufacturers)Specialty chemical intermediates suppliers (China-based)Petrochemical feedstock suppliers

Downstream

Nutrien Ag Solutions (division of Nutrien Ltd)NYSE:NTR CHS IncNASDAQ:CHSCPWilbur-Ellis CompanyBallagro Agro Tecnologia LtdaSimplot Grower Solutions (J.R. Simplot Company)Helena Agri-EnterprisesGROWMARKUPL LtdNSE:UPLCrystal Crop Protection LimitedVarious regional agricultural cooperatives and independent retailers

Proxies

Corteva IncNYSE:CTVA Nutrien LtdNYSE:NTRUPL LtdNSE:UPLNufarm LimitedASX:NUF

About UsPrivacy PolicyTerms of ServiceDisclaimerStock DirectoryETFsIndices13F HoldingsAnalyst TargetsFree ToolsTechnology MapJoin our Slack

Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer