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1. Company Snapshot

1.a. Company Description

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products.It develops, markets, and sells crop protection chemicals that include insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control.The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives.


It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia.FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

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1.b. Last Insights on FMC

FMC Corporation's recent performance was negatively impacted by a significant decline in sales, primarily due to a major write-down of its India business and reorganization moves. The company's Q3 2025 revenue declined 49% year-over-year, driven by a 85% dividend cut and a $569 million loss. Weak pricing and commercial actions in India also contributed to the decline. Additionally, an analyst aggressively cut his price target on the stock from $43 to $14, citing concerns over the company's financials.

1.c. Company Highlights

2. FMC Corporation's Q3 2025 Earnings: A Challenging Quarter Amidst Industry Headwinds

FMC Corporation reported a challenging third quarter in 2025, with GAAP net sales of $542 million, a 49% decline from the prior year, primarily due to one-time actions taken in India. Excluding India, revenue was $961 million, down 4% year-over-year, driven by a 6% price decline and intensified competition. The company's adjusted EBITDA, excluding the India held for sale business, was $236 million, 23% higher than the prior year on a like-for-like basis. The actual EPS came out at $0.89, beating estimates of $0.85.

Publication Date: Nov -09

📋 Highlights

Revenue and Margin Analysis

The revenue decline was largely attributed to constrained credit for customers in Brazil and Argentina, as well as pricing pressure from generics in Latin America. Despite these challenges, FMC remains confident in reaching its target of $250 million of new active ingredient sales by the end of the year. The company's adjusted EBITDA margin expansion was driven by cost of goods sold, including lower raw materials and improved fixed cost absorption. As Andrew Sandifer noted, "We reported third quarter GAAP net loss of $569 million, reflecting approximately $510 million of charges and write-downs for the India held for sale business."

Outlook and Guidance

FMC expects the challenging conditions to persist in the fourth quarter, with sales, excluding India, expected to be in the range of $1.12 billion to $1.22 billion. The company has revised its full-year free cash flow guidance to a range of negative $200 million to $0, mainly due to collection delays and reduced liquidity in the channel. FMC is taking steps to address these challenges, including changing its dividend policy to reduce the quarterly payout and beginning discussions with its bank group to further amend the financial covenants in its revolving credit facility agreement.

Valuation and Key Metrics

With a P/E Ratio of -3.27, P/B Ratio of 0.46, and EV/EBITDA of 12.1, FMC's valuation multiples indicate a challenging outlook. The company's Net Debt / EBITDA ratio stands at 3.71, highlighting the need for deleveraging. Analysts estimate next year's revenue growth at 0.3%, indicating a slow recovery. The company's ROE (%) is -12.56, and ROIC (%) is 1.27, suggesting that FMC faces significant challenges in generating returns for its shareholders.

Operational Updates

FMC is undergoing structural changes in the crop chemical industry, with a focus on its growth engine, new active ingredients. The company is reassessing its manufacturing costs and may bring prices down in 2026 and 2027. FMC is also considering partnerships with other companies to participate in the growth of its molecules, while excluding the sale of active ingredients close to commercialization.

3. NewsRoom

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FMC: Potentially The Best High-Risk Play On The Market

Dec -04

Source: seekingalpha.com

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FMC Corporation (FMC) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Rep. Lisa C. McClain Sells Off Shares of FMC Corporation (NYSE:FMC)

Nov -27

Source: defenseworld.net

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FMC Corporation Chairman and CEO Pierre Brondeau and CFO Andrew Sandifer to speak at Goldman Sachs Industrials and Materials Conference

Nov -19

Source: prnewswire.com

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Is FMC Stock a Buy After a Member of the Board of Directors Scooped Up 7,000 Shares?

Nov -18

Source: fool.com

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Why FMC Stock Got Mashed on Monday

Nov -17

Source: fool.com

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Why FMC Plunged Over 50% in October

Nov -11

Source: fool.com

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Johnson Fistel Continues Investigation on Behalf of FMC Corporation Long-Term Shareholders

Nov -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.47%)

6. Segments

Insecticides

Expected Growth: 6.5%

FMC Corporation's insecticides segment growth of 6.5% is driven by increasing demand for crop protection products, particularly in Latin America and Asia. Rising adoption of precision agriculture, growing need to manage pest resistance, and favorable government regulations supporting sustainable agriculture practices also contribute to this growth.

Herbicides

Expected Growth: 6.2%

FMC Corporation's Herbicides segment growth of 6.2% is driven by increasing adoption of precision farming, rising demand for crop protection products, and expansion into emerging markets. Additionally, the company's strategic acquisitions and investments in R&D have enhanced its product portfolio, contributing to the growth.

Fungicides

Expected Growth: 6.8%

FMC Corporation's Fungicides segment growth of 6.8% is driven by increasing demand for crop protection products, particularly in Latin America and Asia. Rising adoption of precision agriculture, growing concerns over food security, and favorable weather conditions also contribute to this growth. Additionally, FMC's strong product portfolio, including brands like Rynaxypyr and Cyazypyr, and strategic partnerships with distributors and farmers support this upward trend.

Plant Health

Expected Growth: 7.2%

FMC Corporation's Plant Health segment growth of 7.2% is driven by increasing adoption of precision agriculture, rising demand for sustainable crop protection solutions, and expansion into emerging markets. Additionally, the company's strategic investments in R&D, digital platforms, and partnerships with key industry players have contributed to its growth momentum.

Other

Expected Growth: 6.9%

FMC Corporation's 6.9% growth in the 'Other' segment is driven by increasing demand for its lithium derivatives used in energy storage and electric vehicles, as well as strong sales of its omega-3 fatty acids for pharmaceutical and nutritional applications.

7. Detailed Products

Herbicides

FMC Corporation offers a range of herbicides that help farmers control weeds and protect their crops. These products are designed to be effective, efficient, and environmentally friendly.

Insecticides

FMC Corporation's insecticides are designed to control pests and protect crops from damage. These products are formulated to be safe for the environment and human consumption.

Fungicides

FMC Corporation's fungicides are used to control fungal diseases in crops. These products are designed to be effective and environmentally friendly.

Pest Control Solutions

FMC Corporation's pest control solutions are designed to control pests in urban and rural areas. These products are formulated to be safe for humans and the environment.

Specialty Algaecides

FMC Corporation's specialty algaecides are used to control algae growth in water treatment systems, industrial processes, and recreational waters.

Lithium-based Products

FMC Corporation's lithium-based products are used in a range of applications, including energy storage, ceramics, and pharmaceuticals.

8. FMC Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FMC Corporation is medium due to the presence of alternative products and services in the market, but the company's strong brand reputation and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for FMC Corporation due to the company's diversified product portfolio and strong distribution network, which reduces the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for FMC Corporation due to the presence of multiple suppliers in the market, but the company's large scale of operations and long-term contracts with suppliers mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low for FMC Corporation due to the high barriers to entry in the agricultural chemicals and specialty chemicals industries, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for FMC Corporation due to the presence of several established players in the market, including Syngenta, Bayer, and BASF, which leads to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.44%
Debt Cost 3.95%
Equity Weight 52.56%
Equity Cost 8.37%
WACC 6.27%
Leverage 90.28%

11. Quality Control: FMC Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 7.1

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Mosaic

A-Score: 5.7/10

Value: 6.7

Growth: 3.8

Quality: 4.6

Yield: 5.0

Momentum: 8.0

Volatility: 6.0

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Scotts Miracle-Gro

A-Score: 4.6/10

Value: 5.2

Growth: 4.1

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Summit Materials

A-Score: 4.5/10

Value: 1.9

Growth: 5.6

Quality: 4.0

Yield: 1.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FMC

A-Score: 4.4/10

Value: 8.6

Growth: 3.6

Quality: 4.1

Yield: 8.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Westlake

A-Score: 4.0/10

Value: 7.8

Growth: 4.0

Quality: 3.5

Yield: 4.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.29$

Current Price

13.29$

Potential

-0.00%

Expected Cash-Flows