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"We rate FMC CORP (FMC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 182.3% when compared to the same quarter one year prior, rising from $27.10 million to $76.50 million.
- Net operating cash flow has significantly increased by 939.02% to $172.00 million when compared to the same quarter last year. In addition, FMC CORP has also vastly surpassed the industry average cash flow growth rate of -23.18%.
- 36.48% is the gross profit margin for FMC CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.00% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.2%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- FMC CORP's earnings per share declined by 34.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, FMC CORP reported lower earnings of $2.95 versus $3.31 in the prior year. This year, the market expects an improvement in earnings ($4.23 versus $2.95).
- You can view the full analysis from the report here: FMC Ratings Report
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