FMC

FMC Corp.

Industrial/Transportation


Presented:10/17/2019
Price:$84.40
Cap:$11.01B
Current Price:$61.76
Cap:$7.71B

Presented

Date10/17/2019
Price$84.40
Market Cap$11.01B
Ent Value$14.35B
P/E Ratio21.91x
Book Value$21.19
Div Yield1.64%
Shares O/S130.43M
Ave Daily Vol940,371
Short Int2.21%

Current

Price$61.76
Market Cap$7.71B
FMC Corp. engages in the provision of solutions, applications, and products for the agricultural, industrial, and consumer markets. It operates through two segments: FMC Agricultural Solutions and FMC Lithium. The FMC Agricultural Solutions segment develops, markets, and sells all three major classes of crop protection chemicals: insecticides, herbicides and fungicides, which are used to enhance crop yield and quality.. The FMC Lithium segment manufactures lithium for use in lithium products, which are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company was founded by John Bean in 1883 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Corteva Inc (CTVA), DuPont de Nemours Inc (DD), FMC Corp (FMC)

Highlights

The presenter is long shares of FMC Corp (FMC), the chemical company that has restructured its core business in recent years. Through strong M&A deals, FMC has reinvented itself as a pure play crop chemicals company that will benefit from growth in new markets and cost savings. Using conservative assumptions, he expects earnings to CAGR at 15% – 20% with additional upside. FMC trades at ~13.5x forward EPS (~$85 per share), so the strong growth in earnings should be reflected in share prices over the coming years. There is also the possibility for multiple expansion given the improved business mix, as comps tend to trade at higher valuations; Corteva Inc (CTVA), for example, trades at ~23x forward earnings. 

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Idea Discussion

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