FMC Corporation (FMC): A Bull Case Theory 

We came across a bullish thesis on FMC Corporation on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on FMC. FMC Corporation’s share was trading at $13.84 as of December 1st. FMC’s trailing and forward P/E were 30.22 and 5.92 respectively according to Yahoo Finance.

FMC Corporation (NYSE: FMC) is a global agricultural chemical company specializing in herbicides, fungicides, and insecticides, known for its strong research pipeline and deep intellectual property moat. Following a 75% stock decline from 2022 highs amid a destocking cycle and weaker pricing, the company now trades at historically low valuation levels, presenting a potential turnaround story. FMC’s destocking headwinds appear to be easing as product use on farms has surpassed distributor sales in recent quarters, signaling inventory normalization.

Its innovation-led model—anchored by patented molecules such as Rynaxypyr® and Cyazypyr®—and new products like Fluindapyr, Isoflex™, and Dodhylex™ support a path toward renewed growth, especially as markets like Brazil and Latin America expand. The company is also divesting its low-margin India commercial business to reallocate capital toward higher-return opportunities while establishing a direct-to-grower sales model in Brazil. With biologicals growing over 20% annually and favorable industry tailwinds tied to global food demand, FMC is well-positioned for a cyclical rebound.

Financially, FMC maintains a strong balance sheet with manageable maturities beginning only in 2029 and ample liquidity. Management aims to reduce leverage while sustaining a 7%+ dividend yield. Historical returns on capital have been robust, with a median ROIC near 17%. Risks remain tied to commodity cycles, competitive pressures, and execution of new initiatives, but the destocking recovery, new product launches, and balance sheet strength underpin the upside case. Based on management’s 2027 targets and normalized free cash flow assumptions, fair value estimates suggest potential appreciation toward $75–$80 per share—implying nearly 2.5x upside from current levels.

Previously we covered a bullish thesis on Corteva, Inc. (CTVA) by Business Model Mastery in May 2025, which highlighted the company’s strong patent portfolio, digital ecosystem, and margin-rich biologicals. The company’s stock price has appreciated approximately by 7.66% since our coverage. This is because the thesis played out amid resilient IP-driven growth. The thesis still stands as agricultural innovation remains durable. DeepValue Capital shares a similar view but emphasizes FMC’s turnaround from destocking and innovation-led recovery.

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Disclosure: None.