Fmc Corporation Intrinsic Value Calculation – FMC Downgraded to Neutral by Mizuho Amid Pesticide Destocking
December 8, 2023
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FMC ($NYSE:FMC) Corporation, a chemical manufacturing company based in Philadelphia, Pennsylvania, recently had its rating downgraded by Mizuho to Neutral. This was due to the destocking of pesticides, which is expected to contribute to the company’s short-term challenges. FMC Corporation has a long history of providing solutions to customers in the agricultural, consumer and industrial markets. The company has an expansive product portfolio that includes products for crop protection, pest control, turf and ornamental plants, seeds and more.
Additionally, FMC Corporation offers specialty chemicals for the automotive, tire and glass industries, as well as advanced technologies for air and water treatment. The downgrade by Mizuho is due to the destocking of pesticides by FMC Corporation’s customers. As a result, this has caused a negative impact on the company’s performance in the short run. Mizuho analysts believe that FMC Corporation will be able to recover from this setback but will have to face significant headwinds to turn things around. Despite the recent downgrade, FMC Corporation remains confident that it can overcome these short-term challenges. The company plans to continue investing in new products and technologies to better meet customer needs and remain competitive in the market. Additionally, FMC Corporation is committed to providing high-quality products and services while maintaining its commitment to sustainability and corporate social responsibility initiatives.
Price History
Mizuho, a major financial services provider, announced on Thursday that it has downgraded FMC CORPORATION‘s rating from ‘buy’ to ‘neutral’. The downgrade comes amid FMC’s ongoing destocking of its specialty pesticide portfolio, which is expected to hurt the company’s earnings in the short term. At the time of the downgrade, FMC CORPORATION stock opened at $54.9 and closed at $55.4, up by 0.3% from the previous closing price of 55.2. Despite the upgrade, analysts have cautioned that the destocking of specialty pesticides could lead to a decline in the company’s revenue and profits.
In the long-term, Mizuho expects FMC CORPORATION to benefit from its strategic investments and new product launches. The downgrade to ‘neutral’ by one of the largest financial services provider is indicative of how FMC CORPORATION’s current business model could be affected by the destocking of specialty pesticides. Investors may be advised to look at other stocks in the sector that are not facing similar issues. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fmc Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.96k | 496.3 | 12.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fmc Corporation. More…
| Operations | Investing | Financing |
| -60.7 | -99 | 127 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fmc Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.96k | 7.64k | 26.88 |
Key Ratios Snapshot
Some of the financial key ratios for Fmc Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.9% | 1.0% | 18.5% |
| FCF Margin | ROE | ROA |
| -1.9% | 17.1% | 5.2% |
Analysis – Fmc Corporation Intrinsic Value Calculation
At GoodWhale, we are committed to helping you analyze the fundamentals of companies. We have used our proprietary Valuation Line to analyze FMC CORPORATION and have determined that the intrinsic value of their shares is around $89.7. It is currently being traded at $55.4, which means that it is undervalued by 38.2%. This could be a great opportunity for investors who want to invest in this company at a discounted price. We recommend that you do more research and consult with a trusted financial advisor before making any decisions about investing in this company. More…
Peers
The company competes with other chemical companies such as Anhui Liuguo Chemical Co Ltd, Shandong Hualu-hengsheng Chemical Co Ltd, and Shandong Weifang Rainbow Chemical Co Ltd.
– Anhui Liuguo Chemical Co Ltd ($SHSE:600470)
Anhui Liuguo Chemical Co Ltd is a Chinese chemical company with a market cap of 3.31B as of 2022. The company has a Return on Equity of 15.93%. Liuguo Chemical is engaged in the manufacture and sale of chemical products. The company’s products are used in the textile, food, and pharmaceutical industries.
– Shandong Hualu-hengsheng Chemical Co Ltd ($SHSE:600426)
Shandong Hualu-hengsheng Chemical Co Ltd is a chemical company that produces and sells a variety of chemicals. The company has a market capitalization of 61.05 billion as of 2022 and a return on equity of 23.83%. The company’s products include organic and inorganic chemicals, dyestuffs, pigments, and other chemicals.
– Shandong Weifang Rainbow Chemical Co Ltd ($SZSE:301035)
Shandong Weifang Rainbow Chemical Co Ltd is a market leader in the production of dyes and pigments. The company has a strong market share in China and its products are sold in over 50 countries around the world. Rainbow Chemical is a publicly traded company with a market capitalization of over 26 billion US dollars as of 2022. The company has a strong return on equity of 19.47%. Rainbow Chemical is a vertically integrated manufacturer of dyes and pigments with a complete value chain from manufacturing to marketing. The company has a comprehensive product portfolio that covers all major applications in the dyestuff and pigment industry. Rainbow Chemical is committed to sustainable development and has a strong focus on environmental, health, and safety.
Summary
FMC Corporation, a global leader in the crop protection and pest control industry, recently had its stock rating downgraded from a “Buy” to “Neutral” by Mizuho. This downgrade is largely attributed to the ongoing destocking of the company’s pesticides. Despite this setback, FMC remains a solid long-term investment for many investors. The company has a diversified product portfolio, is well-positioned geographically, and has strong balance sheet fundamentals.
Additionally, FMC is actively developing innovative solutions to address current and future customer needs in both the agricultural and industrial markets. In order to maintain its position as an industry leader, FMC must continue to address challenges posed by the destocking of pesticides, as well as other factors such as customer demand, competitive pressures, and industry trends. Ultimately, FMC remains an attractive investment opportunity for those seeking long-term returns.
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