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Category: Stock Market and Badger Meter
Date: 6 February 2020 Stock Price: $101.82 We take a look at the 4th quarter earnings report of their 2019 fiscal year of FMC a company that provides a wide variety of crop protection products, plant health and professional pest and turn maintenance solutions.
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About FMC Corporation
FMC Corporation provides solutions to growers around the world with a portfolio of proprietary crop protection products and a robust pipeline fueled by innovative discovery and development capabilities in crop protection, plant health and professional pest and turf maintenance solutions. In October 2018, FMC conducted an initial public offering of its Lithium business. The new company, Livent Corporation, is approximately 85 percent owned by FMC and is expected to be spun off on March 1, 2019. FMC employs approximately 7,300 employees (including through Livent) around the globe.
Overview of FMC Corporation's 4th quarter 2019 earnings report
- Revenue: $1.197 billion (up from $1.099 billion for the same quarter of the previous year)
- Revenue increased by 8.9% over the last 12 months
- Cost of sales: $641.3 million (up from $607.7 million for the same quarter of the previous year)
- Cost of sales increased by 5.5% over the last 12 months
- Some margin gains for FMC Corporation as revenues increased at a faster rate than their cost of sales
- Net loss: -$3.2 million (down from $32.4 million for the same quarter of the previous year)
- Diluted earnings per share: -$0.02 (down from $0.24 for the same quarter of the previous year)
- PE ratio of FMC Corporation : 27.9
- Dividend declared: $0.44
- Dividend yield: 1.7%
- Diluted weighted-average shares outstanding: 130.9 million (down from 135.1 million for the same quarter of the previous year)
- Cash and cash equivalents: $339.1 million
- Cash and cash equivalents per share: $2.59
- Cash and cash equivalents makes up 2.5% of FMC Corporation market capital
- Cash and cash equivalents makes up 3.4% of FMC Corporation's total assets
- Accounts receivable: $2.231 billion
- Accounts receivable makes up 22.6% of FMC Corporation's total assets
- Inventories: $1.017 billion
- Inventories makes up 10.3% of FMC Corporation's total assets
- Stockholders equity in FMC Corporation: $2.561 billion
- Stockholders equity per share: $19.56
- So FMC Corporation is trading at 5.2 times its stockholders equity which is outside the expected range of between 2 and 4 which most firms ten to trade at.
- Cash generated from operations for the year ended: $555.6 million
- Cash generated from operations per share: $4.24
FMC Corporation's management commentary on their 4th quarter 2019 earnings
PHILADELPHIA, Feb. 5, 2020 /PRNewswire/
FMC Corporation (NYSE: FMC) today reported fourth quarter 2019 revenue of $1.2 billion, an increase of 9 percent versus recast fourth quarter 2018, driven by higher volumes across all regions. Excluding the impact of foreign exchange, year-over-year sales grew 11 percent organically. On a GAAP basis, the company reported a loss of $0.02 per diluted share in the fourth quarter. This compares to recast GAAP earnings of $0.24 per diluted share in the fourth quarter of 2018.
"Our financial outperformance reflects the strength of our portfolio and new technology launches," said Pierre Brondeau, chairman and CEO of FMC. "FMC delivered continued strong revenue growth in the quarter driven by high demand in all regions despite adverse weather conditions in Europe and Asia."
FMC Corporation (NYSE: FMC) today reported fourth quarter 2019 revenue of $1.2 billion, an increase of 9 percent versus recast fourth quarter 2018, driven by higher volumes across all regions. Excluding the impact of foreign exchange, year-over-year sales grew 11 percent organically. On a GAAP basis, the company reported a loss of $0.02 per diluted share in the fourth quarter. This compares to recast GAAP earnings of $0.24 per diluted share in the fourth quarter of 2018.
"Our financial outperformance reflects the strength of our portfolio and new technology launches," said Pierre Brondeau, chairman and CEO of FMC. "FMC delivered continued strong revenue growth in the quarter driven by high demand in all regions despite adverse weather conditions in Europe and Asia."
FMC fourth quarter revenue growth was driven by an 11 percent contribution from volume, partially offset by a 2 percent currency headwind. FMC achieved higher year-over-year pricing in Latin America, EMEA and Asia. Latin America sales grew 10 percent year over year, led by strong growth in Argentina following significant changes the company made to its go-to-market access in that country. In North America, revenue increased 10 percent driven by volume growth and strength in Rynaxypyr® and Cyazypyr® insect controls. In Asia, revenue increased 9 percent with double-digit growth in India, China, Indonesia and Pakistan, driven by strong demand for the diamides and new product launches. Sales in EMEA grew 5 percent year over year due to higher demand for herbicides and insecticides in France and Russia.
2020 Outlook
FMC full-year revenue is forecasted to be in the range of $4.8 to $4.95 billion, an increase of 6 percent at the midpoint versus 2019 driven by volume and pricing in all regions. Total company adjusted EBITDA is expected to be in the range of $1.3 to $1.34 billion, an increase of 8 percent at the midpoint versus 2019. Full-year adjusted earnings are expected to be in the range of $6.45 to $6.70 per diluted share, an increase of 8 percent at the midpoint versus 2019 and assuming weighted average diluted shares outstanding (WADSO) of approximately 131 million.
First Quarter 2020 Outlook
First quarter revenue is expected to be in the range of $1.23 billion to $1.27 billion, representing 5 percent growth at the midpoint compared to first quarter 2019. Total company adjusted EBITDA is forecasted to be in the range of $346 million to $366 million, representing a 4 percent increase at the midpoint versus Q1 2019. FMC expects adjusted earnings per diluted share to be in the range of $1.76 to $1.86 in the first quarter, representing an increase of 5 percent at the midpoint versus Q1 2019 and assuming WADSO of approximately 131 million.
2020 Outlook
FMC full-year revenue is forecasted to be in the range of $4.8 to $4.95 billion, an increase of 6 percent at the midpoint versus 2019 driven by volume and pricing in all regions. Total company adjusted EBITDA is expected to be in the range of $1.3 to $1.34 billion, an increase of 8 percent at the midpoint versus 2019. Full-year adjusted earnings are expected to be in the range of $6.45 to $6.70 per diluted share, an increase of 8 percent at the midpoint versus 2019 and assuming weighted average diluted shares outstanding (WADSO) of approximately 131 million.
First Quarter 2020 Outlook
First quarter revenue is expected to be in the range of $1.23 billion to $1.27 billion, representing 5 percent growth at the midpoint compared to first quarter 2019. Total company adjusted EBITDA is forecasted to be in the range of $346 million to $366 million, representing a 4 percent increase at the midpoint versus Q1 2019. FMC expects adjusted earnings per diluted share to be in the range of $1.76 to $1.86 in the first quarter, representing an increase of 5 percent at the midpoint versus Q1 2019 and assuming WADSO of approximately 131 million.
FMC Corporation (NYSE: FMC) stock price history
The image below, obtained from Google, shows the stock price history of FMC Corporation over the last 5 years. And it's been a very good time for FMC Corporation stockholders.5 years ago the stock was trading at around $53.50 a stock and its currently trading at $6101.8 a stock. That's a very strong return of 90.3% provided to Badger Meter stockholders over the last 5 years.
The stock of FMC Corporation is trading at a lot closer to its 52 week high of $102 than it is to its 52 week low if $69.74. This is a clear indication to us that the short term sentiment and momentum of FMC Corporation stock is very positive at this point in time.
The stock of FMC Corporation is trading at a lot closer to its 52 week high of $102 than it is to its 52 week low if $69.74. This is a clear indication to us that the short term sentiment and momentum of FMC Corporation stock is very positive at this point in time.
Recent coverage of FMC Corporation
The following extract covering Badger Meter was obtained from Zacks.com
FMC Corporation’s (FMC - Free Report) board of directors recently announced a 10% hike in quarterly dividend. The dividend of 44 cents per share is payable on Jan 16, 2020 to its shareholders of record as of the close of business on Dec 31, 2019. The company’s latest move aligns with the policy of regularly rewarding its shareholders by increasing the dividend at the same rate of growth in net income.
Notably, FMC Corp had cash and cash equivalents of $419.7 million at the end of third-quarter 2019, up more than 159% year over year. Long-term debt was $3,032.4 million at the end of the third quarter.In third-quarter 2019 earnings call, the company raised its revenue and earnings guidance for 2019. For the full year, it now projects revenues between $4.58 billion and $4.62 billion (up from the range $4.5-$4.6 billion expected earlier). The revised guidance indicates a rise of 7% at the midpoint from recast 2018 figure.
Adjusted earnings per share (EPS) for 2019 are expected in the range of $5.80-$5.90 compared with its earlier view of $5.68-$5.88. The revised guidance indicates an increase of 12% at the midpoint from recast 2018 figure.
Read the full article here
FMC Corporation’s (FMC - Free Report) board of directors recently announced a 10% hike in quarterly dividend. The dividend of 44 cents per share is payable on Jan 16, 2020 to its shareholders of record as of the close of business on Dec 31, 2019. The company’s latest move aligns with the policy of regularly rewarding its shareholders by increasing the dividend at the same rate of growth in net income.
Notably, FMC Corp had cash and cash equivalents of $419.7 million at the end of third-quarter 2019, up more than 159% year over year. Long-term debt was $3,032.4 million at the end of the third quarter.In third-quarter 2019 earnings call, the company raised its revenue and earnings guidance for 2019. For the full year, it now projects revenues between $4.58 billion and $4.62 billion (up from the range $4.5-$4.6 billion expected earlier). The revised guidance indicates a rise of 7% at the midpoint from recast 2018 figure.
Adjusted earnings per share (EPS) for 2019 are expected in the range of $5.80-$5.90 compared with its earlier view of $5.68-$5.88. The revised guidance indicates an increase of 12% at the midpoint from recast 2018 figure.
Read the full article here
FMC Corporation (NYSE: FMC) latest stock valuation
So what is FMC Corporation stock worth based on the release of their latest earnings report and their outlook provided? Based on the group's latest earnings provided our valuation model provides a target price (full value price) at $104.8 a FMC Corporation stock. We therefore believe that the stock of FMC Corporation is fully valued.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $104.8. Thus we see a good entry point into FMC Corporation stock at $94.30 or below. We expect the stock of FMC Corporation to trade in a narrow range around our target price in coming weeks and months.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $104.8. Thus we see a good entry point into FMC Corporation stock at $94.30 or below. We expect the stock of FMC Corporation to trade in a narrow range around our target price in coming weeks and months.
Next earnings release for FMC Corporation
It is expected that FMC Corporation will release their 1st quarter 2020 earnings report in early May 2020.