FMC (NYSE:FMC)
has been making a lot of smart moves to better position the company for
above-average long-term growth in multiple attractive specialty
chemical markets. The Cheminova deal wasn't cheap, but added good
diversification and offers expense-driven synergies, while the sale of
the alkali business came at a better than expected price. Longer term,
it's hard not to like crop protection, health/nutrition, and lithium.
I wasn't thrilled with FMC's valuation back in April of 2014, and the shares have fallen almost 30% since then, underperforming BASF (OTCQX:BASFY), Bayer (OTCPK:BAYRY), Dow (NYSE:DOW), and Monsanto (NYSE:MON)
over that time. I'm still not enamored with the valuation today, but I
do believe there is an opportunity for the company to outperform on both
sales growth and margin leverage.
Read the full article here:
FMC In The Right Businesses, But The Valuation Could Be Better
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