FMC Profitability Analysis

FMC Stock  USD 62.70  0.84  1.36%   
Based on the measurements of profitability obtained from FMC's financial statements, FMC Corporation is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in April. Profitability indicators assess FMC's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-09-30
Previous Quarter
-3.5 M
Current Value
1.1 B
Quarterly Volatility
136.2 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current year's Days Of Sales Outstanding is expected to grow to 251.56, whereas Price To Sales Ratio is forecasted to decline to 1.03. At present, FMC's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 1.5 B, whereas Accumulated Other Comprehensive Income is forecasted to decline to (426.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.270.4253
Way Down
Slightly volatile
Net Profit Margin0.310.2945
Sufficiently Up
Slightly volatile
Operating Profit Margin0.20.1867
Notably Up
Slightly volatile
Return On Assets0.120.1108
Significantly Up
Pretty Stable
For FMC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FMC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FMC Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FMC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FMC Corporation over time as well as its relative position and ranking within its peers.
  
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Is FMC's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FMC. If investors know FMC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FMC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
3.073
Dividend Share
2.32
Earnings Share
11.31
Revenue Per Share
35.877
Quarterly Revenue Growth
(0.29)
The market value of FMC Corporation is measured differently than its book value, which is the value of FMC that is recorded on the company's balance sheet. Investors also form their own opinion of FMC's value that differs from its market value or its book value, called intrinsic value, which is FMC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FMC's market value can be influenced by many factors that don't directly affect FMC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FMC's value and its price as these two are different measures arrived at by different means. Investors typically determine if FMC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FMC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

FMC Corporation Working Capital vs. Total Debt Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining FMC's current stock value. Our valuation model uses many indicators to compare FMC value to that of its competitors to determine the firm's financial worth.
FMC Corporation is rated as one of the top companies in total debt category among related companies. It is one of the top stocks in working capital category among related companies reporting about  0.42  of Working Capital per Total Debt. The ratio of Total Debt to Working Capital for FMC Corporation is roughly  2.35 . As of March 28, 2024, Net Working Capital is expected to decline to about 1.6 B. The current year's Change In Working Capital is expected to grow to about (826.9 M). Comparative valuation analysis is a catch-all model that can be used if you cannot value FMC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for FMC's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the FMC's earnings, one of the primary drivers of an investment's value.

FMC Total Debt vs. Competition

FMC Corporation is rated as one of the top companies in total debt category among related companies. Total debt of Materials industry is currently estimated at about 968.45 Billion. FMC adds roughly 4.11 Billion in total debt claiming only tiny portion of all equities under Materials industry.
Total debt  Revenue  Workforce  Valuation  Capitalization

FMC Working Capital vs. Total Debt

Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

FMC

Total Debt

 = 

Bonds

+

Notes

 = 
4.11 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .

FMC

Working Capital

 = 

Current Assets

-

Current Liabilities

 = 
1.74 B
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

FMC Working Capital Comparison

FMC is currently under evaluation in working capital category among related companies.

FMC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in FMC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FMC will eventually generate negative long term returns. The profitability progress is the general direction of FMC's change in net profit over the period of time. It can combine multiple indicators of FMC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-406.5 M-426.8 M
Operating Income837.9 M879.8 M
Income Before Tax300.2 M326.8 M
Total Other Income Expense Net-537.7 M-510.8 M
Net Income1.4 B1.5 B
Income Tax Expense-1.1 B-1.1 B
Net Income Applicable To Common Shares847 M889.3 M
Net Income From Continuing Ops601.3 M457.4 M
Non Operating Income Net Other90 K85.5 K
Interest Income174.6 M183.3 M
Net Interest Income-225.3 M-214 M
Change To Netincome-127.2 M-120.8 M
Net Income Per E B T 4.40  4.62 

FMC Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on FMC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of FMC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the FMC's important profitability drivers and their relationship over time.

FMC Profitability Trends

FMC profitability trend refers to the progression of profit or loss within a business. An upward trend means that FMC's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is FMC's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

FMC Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between FMC different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards FMC in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down FMC's future profitability.

Use FMC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if FMC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FMC will appreciate offsetting losses from the drop in the long position's value.

FMC Pair Trading

FMC Corporation Pair Trading Analysis

The ability to find closely correlated positions to FMC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FMC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back FMC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling FMC Corporation to buy it.
The correlation of FMC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as FMC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FMC Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for FMC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your FMC position

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Treasury ETFs
Treasury ETFs Theme
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When determining whether FMC Corporation offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of FMC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Fmc Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fmc Corporation Stock:
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You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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To fully project FMC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of FMC Corporation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include FMC's income statement, its balance sheet, and the statement of cash flows.
Potential FMC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although FMC investors may work on each financial statement separately, they are all related. The changes in FMC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on FMC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.