Investment Thesis
FMC Corporation faces severe operational distress with negative operating income (-47% margin) and substantial net losses (-$2.2B, -64.6% margin) despite maintaining reasonable gross margins of 37%. The company's leverage is concerning with a 1.62x debt-to-equity ratio and negative interest coverage (-6.9x), indicating inability to service debt from operations, while 18.3% revenue decline signals deteriorating demand in its chemical products segment.
FMC Strengths
- Adequate liquidity with current ratio of 1.32x and $584.5M cash reserves providing near-term operational flexibility
- Solid gross profit of $1.3B and 37% gross margin indicating underlying production efficiency at the product level
- Moderate asset base of $9.7B provides tangible backing for the business
FMC Risks
- Massive operating losses of -$1.6B and net losses of -$2.2B demonstrate fundamental operational failure beyond normal cyclicality
- Critical leverage concern with $3.4B long-term debt and negative interest coverage ratio (-6.9x), creating acute refinancing and insolvency risk
- Severe revenue contraction of 18.3% YoY combined with negative operating margins suggests structural market share loss or product obsolescence in the chemicals sector
- Negative ROE (-108.1%) and ROA (-23.1%) indicate destruction of shareholder value and inefficient asset utilization
Key Metrics to Watch
- Operating cash flow trend and ability to generate positive operating cash despite GAAP losses
- Quarterly revenue stabilization and gross margin sustainability to determine if decline has bottomed
- Debt service capability and refinancing timeline given negative interest coverage and covenant compliance status
FMC Financial Metrics
FMC Profitability Ratios
FMC Balance Sheet & Liquidity
FMC 5-Year Financial Trend
5-Year Trend Summary: FMC CORP's revenue has declined by 11% over the 5-year period, indicating business contraction. The most recent EPS of $10.53 reflects profitable operations.
FMC Growth Metrics (YoY)
FMC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $542.2M | $65.0M | $0.52 |
| Q2 2025 | $1.0B | $51.2M | $0.41 |
| Q1 2025 | $791.4M | -$2.7M | $-0.02 |
| Q3 2024 | $981.9M | -$3.5M | $-0.03 |
| Q2 2024 | $1.0B | $30.5M | $0.24 |
| Q1 2024 | $918.0M | -$2.7M | $-0.02 |
| Q3 2023 | $981.9M | -$3.5M | $-0.03 |
| Q2 2023 | $1.0B | $30.5M | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FMC Capital Allocation
FMC SEC Filings
Access official SEC EDGAR filings for FMC CORP (CIK: 0000037785)