FMC

FMC Corp

Industrial/Transportation


Presented:05/20/2016
Price:$46.50
Cap:$6.25B
Current Price:$61.76
Cap:$7.71B

Presented

Date05/20/2016
Price$46.50
Market Cap$6.25B
Ent Value$7.50B
P/E Ratio10.77x
Book Value$14.66
Div Yield0.01%
Shares O/S134.30M
Ave Daily Vol1,407,264
Short Int7.09%

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 Lithium. 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 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: Bayer AG (BAYN GR), Dow Chemical Co (DOW), EI du Pont de Nemours & Co (DD), FMC Corp (FMC), Monsanto Co (MON)

Highlights

The presenter believes there is meaningful upside potential for shares of FMC Corp (FMC) following its transformation into a pure-play global agricultural chemicals company. As such, he is long the stock. In 2015 FMC completed the acquisition of Cheminova, and also shed its commodity chemicals business (Alkali Chemicals). Its market cap is now just over a $6 billion (with ~$2 billion net debt), and at $46 the risk/ reward favors bulls. Recent earnings were negatively impacted by FX (namely the Brazilian Real), but when that impact reverses and synergies are taken into account the company’s earnings power should be greater than the market appreciates. He sees the potential for normalized “no growth” annual EPS to be in the range of $4.50 - $5.50 (by comparison, the Street is forecasting $3.40 - $3.50 for 2018), and said there is optionality around capital deployment and M&A in the sector (i.e., Bayer/ Monsanto and Dow/ DuPont).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.