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FMC (FMC) Valuation Check After Prolonged Share Price Slide and Ongoing Profitability Pressures

Simply Wall St · 20h ago

FMC (FMC) has had a rough stretch lately, with the stock sliding over the past year even as revenue has inched higher. That disconnect is what makes the current setup interesting.

See our latest analysis for FMC.

Recent trading has been choppy, with the latest 1 day share price return of negative 5.68 percent adding to a steep 90 day share price return of negative 64.57 percent, and multi year total shareholder returns pointing to momentum that is still fading rather than turning.

If FMC’s slide has you rethinking your exposure, it could be a good moment to scan for other ideas using fast growing stocks with high insider ownership.

With revenue still growing, analyst targets sitting well above the current price, and profitability under pressure, investors face a key question: Is FMC now a beaten down bargain, or is the market already discounting its future recovery?

Most Popular Narrative: 47.3% Undervalued

With FMC last closing at $13.12 against a narrative fair value near $24.92, the spotlight is firmly on an aggressive recovery path in cash generation and margins.

Ongoing cost transformation, including lower manufacturing costs for key products like Rynaxypyr and benefits from 2024-2025 restructuring, creates durable COGS reductions and improved fixed cost absorption, serving as a catalyst for sustainable EBITDA and net margin improvement.

Read the complete narrative.

Want to see how modest revenue growth, sharply improving profitability, and a reset earnings multiple can still justify a much higher value? The narrative’s math may surprise you.

Result: Fair Value of $24.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained regulatory pressure and persistent generic competition could stall margin recovery and challenge assumptions behind FMC’s longer term cash flow repair story.

Find out about the key risks to this FMC narrative.

Build Your Own FMC Narrative

If you are not aligned with this view or would rather dig into the numbers yourself, you can quickly build a custom narrative in minutes: Do it your way.

A great starting point for your FMC research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.