FMC Corporation

$19.00

SKU: FMC Category:

Description

FMC Corporation delivered a disappointing set of results as the company could not meet the revenue and earnings expectations of Wall Street. The company presented several challenges, including FX headwinds, lower EBITDA margin, higher interest expenses, and a decline in free cash flow due to the impact of a channel inventory reset. Despite these challenges, the company is implementing measures to improve EBITDA margins in the year’s second half, expecting positive effects from input cost tailwinds, pricing, and operating expense discipline. The issuance of senior unsecured notes influenced the balance sheets, and the company adjusted its leverage covenant with the bank group to navigate the current disruptions. Although cash flow was significantly impacted, the company’s leadership team plans to prioritize dividend payments and reduce short-term borrowings in the near term, with a potential resumption of share repurchases in 2024 as leverage levels return to targets. We give FMC Corporation a ‘Buy’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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