The reversal since the pandemic has been exceptionally brutal, as shown by the collapse in its market capitalisation, which has wiped out nearly 90% of its value - much like the dividend cut decided on in December - since the highs reached in late 2022.
Indeed, the Pennsylvania-based agrochemicals specialist has suffered a string of setbacks. A prolonged destocking at its distributors and rising pressure from generics are squeezing both its volumes and margins.
The situation is critical across all markets - which has actually led FMC to withdraw from the Indian market - with the exception of the North American domestic market, the group's true defensive base, although growth there remains weak and accounts for under one-third of consolidated revenue.
Consolidated revenue is declining, which over the next three financial years is expected to run at a level below its level in 2018. The same applies to operating profit, which is expected to slow down even more.
These mishaps do not obscure the fact that the group has posted a solid operating track record. Smoothed over the long term, its profit has continued to grow, as have dividends paid. Meanwhile, regarding solvency, this was considered excellent until the sharp reduction in operating profit over the past two years.
Currently with a stockmarket valuation below half the value of shareholder equity - a record low that contrasts with an average more firmly anchored between three and four times equity - FMC should therefore catch the eye of investors who are looking to bet on a cyclical upturn in the agricultural sector.
