FMC Corp.

Overview Key strengths Key risks Favorable geographic diversity with a revenue base across North America, Latin America, Europe, and Asia. Concentration in a single end market--agriculture. Favorable long-term demand growth prospects in the company?s agricultural end market. Inherent volatility in the company?s key agriculture market, which despite favorable long-term demand prospects is subject to seasonality, weather-related event risks, and government policy. FMC Corp.'s EBITDA margins are above average for a specialty chemicals company. The company's research and development (R&D) capabilities, synergies, and higher-margin product portfolio have enabled it to generate stronger margins than others in the crop-protection chemicals market, such as Corteva Inc. In addition, we expect FMC's margins to remain higher than Corteva's for at least the next two

...FMC Corp.'s EBITDA margins are above average for a specialty chemicals company. The company's research and development (R&D) capabilities, synergies, and higher-margin product portfolio have enabled it to generate stronger margins than others in the crop-protection chemicals market, such as Corteva Inc. In addition, we expect FMC's margins to remain higher than Corteva's for at least the next two years, as it benefits from a higher percentage of patented products and a lower cost structure, including royalty payments. We believe the company's credit metrics and financial policies will support an investment-grade rating. In recent quarters, including first quarter 2023, credit metrics have strengthened to...

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