FMC

FMC Corp

Industrial/Transportation


Presented:12/09/2015
Price:$40.49
Cap:$5.44B
Current Price:$61.76
Cap:$7.71B

Presented

Date12/09/2015
Price$40.49
Market Cap$5.44B
Ent Value$6.59B
P/E Ratio7.1x
Book Value$15.82
Div Yield1.63%
Shares O/S134.38M
Ave Daily Vol1,844,888
Short Int5.94%

Current

Price$61.76
Market Cap$7.71B
FMC Corp. is a diversified chemical company, which serves agricultural, consumer and industrial markets globally with innovative solutions, applications and market leading products. The company operates its business through the following segments: Agricultural Solutions, Health and Nutrition and Minerals. The Agricultural Solutions segment is aligned principally around meeting the crop protection needs of food and fiber producers globally. This business segment is poised to introduce a new generation of product, including biological. The Health and Nutrition segment is aligned to serve pharmaceutical, nutraceutical, food and personal care customers with an expanding portfolio of high performance, value added, nature based ingredients for their products. The Minerals segment is aligned to produce quality, cost advantaged minerals whose sales are tied to rising global demand trends in several key consumer markets, especially in rapidly developing economies. The company was founded by John Bean in 1883 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Auriga Industries A/S (AURIB DC), Bayer (), Dow Chemical Co (DOW), E I DuPont De Nemours And Co (DD), FMC Corp (FMC), Monsanto company (MON), Platform Specialty Holdings Inc (PAH), Syngenta AG (SYT), Tronox Ltd (TROX)

Highlights

The presenter is long shares of FMC Corp (FMC), and after a brief review of the company’s history (which can be traced back to the 1880s) and three main segments (Agricultural Solutions, Health and Nutrition and Lithium) he explained that the recent portfolio transformation focuses the company on crop protection. In his estimation the Street does not fully appreciate the highly synergistic nature of the Cheminova deal, and with optionality around a potential take out within the investment horizon he views the risk/ reward and entry point at $40 (or below) as favorable.

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Idea Discussion

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