Fmc Corporation Stock Intrinsic Value – FMC Corp. Plunges 60%, Becoming a Prime Value Opportunity
November 25, 2023
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FMC ($NYSE:FMC) Corp. has recently become an attractive value play for investors, as the stock has plunged an astonishing 60% from its high. FMC Corp is a specialty chemical company that produces products used in agricultural, industrial, and consumer markets. The company has seen a sharp decrease in their share price, making it a prime opportunity for value investors to get in at a discount. This decline has been driven by multiple factors, such as decreased demand for their products, the economic downturn caused by the ongoing pandemic, and increased competition from other chemical companies. Despite the decrease in price however, FMC Corp still has a strong business model and is well-positioned for future growth.
They have a wide range of products that serve a number of markets and a presence in over 60 countries, which gives them a competitive advantage over other companies. The stock is currently trading at an ultra-low price point, providing investors with an opportunity to purchase shares at a discounted rate. With their strong business model and a highly diversified range of products, FMC Corp could be a great addition to any value investor’s portfolio.
Analysis – Fmc Corporation Stock Intrinsic Value
We recently conducted an analysis of FMC CORPORATION to assess its intrinsic value. Through our proprietary Valuation Line, we calculated the the intrinsic value of FMC CORPORATION shares to be around $121.5. Interestingly, the current market price of FMC CORPORATION’s stock is $53.2, thus indicating a 56.2% undervaluation. This provides a great opportunity for investors to purchase the stock at a discounted rate at the moment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fmc Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.96k | 496.3 | 12.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fmc Corporation. More…
| Operations | Investing | Financing |
| -60.7 | -99 | 127 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fmc Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.96k | 7.64k | 26.88 |
Key Ratios Snapshot
Some of the financial key ratios for Fmc Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.9% | 1.0% | 18.5% |
| FCF Margin | ROE | ROA |
| -1.9% | 17.1% | 5.2% |
Peers
The company competes with other chemical companies such as Anhui Liuguo Chemical Co Ltd, Shandong Hualu-hengsheng Chemical Co Ltd, and Shandong Weifang Rainbow Chemical Co Ltd.
– Anhui Liuguo Chemical Co Ltd ($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 has been a deep value stock of late, with its share price down 60% over the past year. This has made FMC an attractive investment opportunity for value investors, as its stock could be trading at a discount given its fundamentals. Analysts have noted that FMC has a strong balance sheet with very low debt, and is likely to benefit from M&A activity and cost restructurings in the near future.
Additionally, FMC’s presence across multiple sectors and geographic markets could prove beneficial going forward. Despite the significant drop in price, investors should conduct their own due diligence and perform a thorough analysis before making any investment decisions.
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