FMC (FMC): Revisiting Valuation After a Steep Share Price Slide to Multi‑Year Lows
FMC (FMC) has been grinding lower this year, and with the stock now trading near multi year lows, investors are starting to ask whether the current price finally reflects the bad news.
See our latest analysis for FMC.
At a latest share price of $13.28, FMC’s slide has been steep, with a 90 day share price return of minus 63.93 percent and a 1 year total shareholder return of minus 75.84 percent, underscoring how quickly sentiment has deteriorated.
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With FMC now trading at a deep discount to analyst targets and sentiment close to washed out, investors face a key question: is this punished crop protection specialist undervalued, or is the market already discounting weaker growth ahead?
Most Popular Narrative: 47% Undervalued
With FMC last closing at $13.28 against a most popular narrative fair value near $24.92, the story hinges on an eventual repair 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. This serves as a catalyst for sustainable EBITDA and net margin improvement. The shift away from direct commercial operations in India to a lower risk B2B supply model frees up cash for debt reduction, enhances the balance sheet, and enables redeployment of capital toward high value innovation and growth portfolios. This is expected to have a positive impact on net earnings over the long term.
Want to see the playbook behind that recovery story? The narrative focuses on accelerating revenue, expanding margins, and a future earnings multiple that could be higher than current expectations. Explore how those moving parts combine to support the higher fair value.
Result: Fair Value of $24.92 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering regulatory uncertainty and persistent pricing pressure from generics could still undercut FMC’s margin rebuild and delay any meaningful re rating.
Find out about the key risks to this FMC narrative.
Build Your Own FMC Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalized narrative in just 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.
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