Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 30 Jun, 25 | FMC | Buy | USD 42.11 | USD 44.2 | USD 46.7 | 3 days | Closed |
4.96%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
Biologicals Growth: Plant Health products outperformed the broader portfolio, indicating strong growth in biologicals despite headwinds
Cost Savings: Lower COGS contributed to improved cost structure, partially offsetting pricing and FX challenges, helping preserve profitability
Revenue Decline: Revenue dropped 14% YoY from USD 918 million to USD 791 million
Adjusted EPS Halved: Adjusted EPS fell from USD 0.36 in Q1 2024 to USD 0.18 in Q1 2025, a 50% decline
FMC faces sustained margin pressure due to global pricing declines, adverse FX movements, and increasing regulatory tariffs, which collectively pose risks to earnings stability and cash generation in the near term.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 42.11 | 38.74 | 44.2 | 46.7 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Performance Overview for Q1 2025: FMC Corporation reported a decline in its financial results for Q1 2025 compared to the previous year. Revenue fell by 14% year-over-year to USD 791 million, primarily driven by pricing adjustments and currency headwinds. Adjusted EBITDA decreased 25% to USD 120 million, and adjusted EPS was halved from USD 0.36 in Q1 2024 to USD 0.18. GAAP net loss stood at USD 16 million, reflecting weak market dynamics and cautious customer purchasing behavior.
Key Strategic and Operational Highlights: Despite the decline in headline financials, FMC emphasized strategic execution, including aligning inventory with customer targets, especially in Latin America. Efforts were made to expand direct market access in Brazil and invest in its growth portfolio, particularly in Plant Health, which outperformed the overall business due to rising demand for biologicals.
Regional and Product-Level Drivers: All geographic regions reported revenue declines, with Asia and North America leading the contraction at -24% and -28% respectively. Volume in Latin America remained relatively stable due to increased sales to cotton growers and higher "product-on-the-ground" levels. However, global pricing pressure and FX headwinds, particularly on cost-plus contracts for diamide partners, were persistent challenges across all regions.
Profitability and Margin Pressure: Lower cost of goods sold (COGS) offered some relief, but margin pressure continued as a result of lower pricing and increased investment in SG&A and R&D. Adjusted EBITDA margin dropped to 15.1% from 17.5% in the previous year. Half of the EBITDA decline was attributed to pricing adjustments on long-term contracts, particularly with diamide partners.
Cash Flow and Capital Allocation: FMC experienced significant deterioration in cash flow, with Q1 2025 free cash flow at a negative USD 596 million compared to a negative USD 188 million the year prior. This decline was mainly due to reduced inventory liquidation and higher restructuring costs. The company anticipates 2025 free cash flow between USD 200 million and USD 400 million, supported by improved volumes and moderated investment activities.
Forward-Looking Guidance: For Q2 and FY 2025, FMC expects flat to slightly declining revenue, with Q2 revenue forecast between USD 940 million and USD 1.10 billion. Adjusted EBITDA and EPS are projected to stay under pressure due to ongoing pricing declines and FX volatility. However, H2 2025 is expected to show improvement, driven by favorable COGS, expansion of new active ingredients, and recovery in demand.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on FMC Corporation (NYSE: FMC) at the closing market price of USD 42.11, as on June 30, 2025 at 08:05 AM PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Agricultural Inputs
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FMC FMC Corporation |
-0.285 0.67% | 41.95 | 4.47 | 11.48 | 1.63 | 1.45 | 2.48 | 22.87 |
| CTVA Corteva Inc |
-0.465 0.64% | 72.70 | 30.23 | 15.58 | 1.89 | 1.30 | 2.10 | 13.87 |
| NTR Nutrien Ltd |
1.74 2.98% | 60.06 | 54.62 | 15.27 | 1.14 | 1.17 | 1.64 | 10.45 |
| CF CF Industries Holdings Inc |
0.22 0.24% | 92.01 | 14.08 | 13.59 | 2.58 | 2.96 | 2.80 | 5.90 |
| MOS The Mosaic Company |
0.84 2.40% | 36.12 | 9.17 | 11.07 | 0.78 | 0.98 | 1.00 | 5.38 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Jun 30,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
