Fmc Corporation Stock Fair Value Calculation – FMC CORPORATION Reports Fourth Quarter Fiscal Year 2022 Earnings Results on February 7, 2023.
February 20, 2023
Earnings Overview
On February 7, 2023, FMC CORPORATION ($NYSE:FMC) reported an impressive increase in fourth quarter earnings for the fiscal year ending December 31, 2022. Total revenue grew by 41.8% from the previous year to USD 273.9 million, and net income increased 14.7% to USD 1622.0 million.
Transcripts Simplified
FMC Corporation had a 2% headwind to revenue in the fourth quarter of 2022 and a 3% headwind for the full year due to currency exchange, with the most significant headwinds coming from the euro, Turkish lira and Indian rupee. Interest expense was $44.8 million for the quarter and $151.8 million for full year 2022, up $11.8 million and $20.7 million respectively. The effective tax rate for 2022 was 13.7%. For 2023, FMC expects interest expense to be in the range of $200-210 million and their tax rate to be between 14-16%.
Gross debt at the end of the year was slightly below $3.3 billion and gross debt-to-EBITDA was 2.3x while net debt-to-EBITDA was 2.0x on a full year average basis. FMC generated free cash flow of $514 million in 2022, down 28% compared to the previous year.
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 |
| 5.8k | 736.5 | 15.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fmc Corporation. More…
| Operations | Investing | Financing |
| 582.4 | -266.4 | -237.4 |
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 |
| 11.17k | 7.77k | 25.31 |
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 |
| 8.0% | 11.9% | 19.6% |
| FCF Margin | ROE | ROA |
| 10.0% | 22.3% | 6.4% |
Stock Price
The company attributed this strong performance to its ability to capitalize on strategic opportunities and successful cost management practices. Going forward, FMC Corporation has set ambitious targets for the upcoming fiscal year, including increasing revenue growth by at least six percent, doubling the operating margin, and doubling net income growth. Live Quote…
Analysis – Fmc Corporation Stock Fair Value Calculation
GoodWhale has conducted a thorough analysis of FMC Corporation‘s well-being and have arrived at a conclusion that the intrinsic value of FMC Corporation’s share is around $124.6. This conclusion is based off of the proprietary Valuation Line that GoodWhale has developed for the purpose of carrying out such determinations. At the time of writing this, FMC Corporation stock is being traded at a rate of $126.1; this rate is 1.2% greater than what our Valuation Line has determined as the fair price. More…
Peers
The company competes with other chemical companies such as Anhui Liuguo Chemical Co Ltd, Shandong Hualu-hengsheng Chemical Co Ltd, and Shandong Weifang Rainbow Chemical Co Ltd.
– Anhui Liuguo Chemical Co Ltd ($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‘s fourth quarter of 2022 saw a significant increase in both revenue and net income. Total revenue grew 41.8% year-on-year compared to the previous year, amounting to USD 273.9 million. Meanwhile, net income amounted to USD 1622.0 million, representing a 14.7% increase.
From an investment perspective, FMC Corp has demonstrated strong growth and is a good option for investors looking to capitalize on their success. The outlook looks particularly promising due to FMC Corp’s ability to increase revenue and net income year-on-year.
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