FMC Maintains Steady Dividend, Analysts See 10.62% Upside and 57.13% GF Value Estimate

FMC Corporation declared a steady quarterly dividend of $0.58 per share, providing a forward yield of 5.48%. Analysts forecast a potential 10.62% upside for FMC stock, while GuruFocus estimates a significant 57.13% upside based on its calculated GF Value. The company's average rating is 2.7, indicating a "Hold" recommendation from 21 firms.

FMC Corporation (NYSE: FMC) has seen its stock price target elevated by RBC Capital to $47.00, up from $40.00, while maintaining a Sector Perform rating [1]. The stock, currently trading at $43.75, offers a notable 5.32% dividend yield and maintains a GOOD financial health score according to InvestingPro analysis.

The new price target is based on a multiple of 9 times the expected fiscal year 2026 EBITDA, a change from the previous valuation method that used 9 times fiscal year 2025 EBITDA. RBC Capital has adjusted its EBITDA estimates for FMC, keeping its Q2 projection at $190 million while revising its fiscal year 2025 estimate to $895 million from $875 million. The fiscal year 2026 EBITDA estimate has been revised to $980 million from the previous $1,030 million.

Analysts have expressed concerns that while FMC may address inventory challenges in fiscal year 2025, the company could face continued pressure from generic competitors and market uncertainty that might result in persistent weakness in 2026. The firm maintained its Sector Perform rating on FMC stock, citing several ongoing challenges including volume and generic product headwinds, high channel inventories, foreign exchange headwinds in 2025, and risks to fourth-quarter performance.

In other recent news, FMC Corporation reported a decline in first-quarter 2025 sales by 14% year-over-year, though it exceeded earnings expectations with an earnings per share (EPS) of $0.18, surpassing the forecast of $0.09. The company also announced an adjusted EBITDA of $120 million, beating the Bloomberg consensus of $113 million, despite a 1% decrease in volumes and a 9% year-over-year drop in pricing. Wells Fargo upgraded FMC’s stock rating from Equal Weight to Overweight, citing positive market trends and projecting earnings growth over the next few years. Additionally, Goldman Sachs maintained its Buy rating for FMC, emphasizing the potential in the company’s pipeline of new active ingredients.

FMC has received regulatory approval in Ukraine for its Tremisia fungicide, marking the first introduction of its fluindapyr technology in the European, Middle East, and Africa region. This approval is significant given Ukraine’s role as a major exporter of sunflower, oilseed rape, and wheat. In another development, FMC has partnered with Corteva (NYSE: CTVA) Agriscience to expand access to fluindapyr-based fungicides for U.S. corn and soybean growers, pending regulatory approval. This collaboration aims to enhance disease management for farmers, with Corteva planning to introduce its own product in the 2026 growing season.

FMC Corporation declared a steady quarterly dividend of $0.58 per share, providing a forward yield of 5.48%. Analysts forecast a potential 10.62% upside for FMC stock, while GuruFocus estimates a significant 57.13% upside based on its calculated GF Value. The company's average rating is 2.7, indicating a "Hold" recommendation from 21 firms.

The insecticides market, in which FMC operates, is projected to grow at a CAGR of about 6.1% from 2025 to 2033, reaching around USD 25.8 billion by 2033 [2]. This growth is driven by increasing demand for crop protection, rising awareness about pest management, and advancements in insecticide formulations. However, environmental concerns and insecticide resistance pose challenges.

References:
[1] https://www.investing.com/news/analyst-ratings/fmc-stock-price-target-raised-to-47-from-40-at-rbc-capital-93CH-4130588
[2] https://www.openpr.com/news/4100603/insecticides-market-set-to-witness-significant-growth-by-2033