The Upcoming Scenario for FMC's Shares:
FMC Corporation's stock, ticker NYSE: FMC, has taken a dive, plummeting a whopping 37% in just a week. With a bleak 2025 outlook, investors are left pondering if it's the right time to dive into Bristol Myers Squibb Stock at $57 instead. FMC delivered a mix bag of results for its fourth quarter, exceeding earnings expectations but falling short in terms of revenue.
The agricultural science company clocked in with sales of $1.22 billion, underperforming the projected $1.34 billion due to lower pricing and unfavorable foreign exchange rates. However, the adjusted earnings per share came in at $1.79, beating the consensus forecast of $1.60. FMC's revenue did see a 7% year-on-year growth and a 12% increase on an organic basis. Volumes also saw a 15% jump, driven by increased demand in North America.
Despite these improvements, segments like Latin America and Asia saw decreases, while EMEA and Plant Health sales saw a boost. FMC's adjusted EBITDA margin expanded by 550 basis points to 27.7%, contributing to earnings of $1.79 per share, up 67% year-on-year. But the company's outlook for 2025 is not exactly sunny, with projected sales of $4.25 billion - significantly lower than the consensus estimates of $4.40 billion.
This gloomy outlook didn't sit well with investors, causing the stock to plummet by over 30% post-results announcement. The volatility in FMC stock is nothing new, with its performance over the recent years being far from consistent. In contrast, the Trefis High-Quality Portfolio, a collection of 30 stocks, is much less volatile, comfortably outperforming the S&P 500 over the last 4-year period.
Valuation-wise, FMC stock appears attractive at its current levels of $35, trading at just 1.0x trailing revenues, compared to its average P/S ratio of 2.2x over the past 5 years. While the dim 2025 outlook warrants a lower valuation multiple, the current price-to-sales ratio seems to have dipped excessively below its historical average, making it an attractive entry point for long-term investors seeking robust future returns.
But before diving headfirst, it's always a good idea to compare FMC's performance with its peers. Head over to Trefis' Peer Comparisons for valuable insights into other companies across industries. Invest wisely!
FMC Corporation's Q4 revenue fell short of expectations, resulting in FMC revenue of $1.22 billion, which was lower than the projected $1.34 billion. Given the company's bleak 2025 outlook and the stock's 37% drop in a week, investors are pondering if the FMC valuation at $35, trading at 1.0x trailing revenues, offers a good opportunity.
