The market, as always, presents a tableau of the hopeful and the hopelessly compromised. One observes, with a certain detached amusement, that even in these inflated times, value – or the illusion thereof – can be unearthed. It requires, naturally, a willingness to overlook the obvious, and a degree of contrarianism that borders on the perverse. The truly discounted are seldom marked with a welcoming sign.
Two specimens currently warrant a squint. FMC Corporation, and Camping World. Both, shall we say, have encountered difficulties. One approaches them not with enthusiasm, but with a cautious curiosity, a sort of morbid fascination reserved for ailing thoroughbreds.
FMC Corporation
FMC, a purveyor of agricultural remedies, one might expect, would be shielded from much misfortune. Yet, revenue and earnings have been declining with a regularity that suggests not cyclical downturn, but terminal ennui. Three consecutive years of decline, a performance that would shame a lesser concern.
The agricultural sector, it is true, is rarely a source of unbridled joy. And the impending expiration of patent protection for some of FMC’s key products adds a certain piquancy to the situation. Generics, of course, are the vultures of the pharmaceutical world.
The company once attracted income-seekers with a generous dividend. That particular indulgence, however, has been curtailed. An 86% reduction is not merely a trim, but a surgical amputation. Free cash flow, predictably, has suffered, and the outlook for 2026 is, to put it mildly, uninspiring. A double-digit yield, while tempting, was always a fool’s paradise. Even the current 2.3% payout is contingent upon a recovery that seems, at this juncture, more aspirational than probable. The $4 billion in debt looms, a constant, unpleasant reminder of past excesses.
Recent guidance for 2026 was, shall we say, underwhelming. Analysts anticipated $4 billion in revenue; FMC projects $3.6 to $3.8 billion. Earnings per share are expected to be $1.63 to $1.89, a considerable shortfall from the $2.44 previously modeled. The market, however, reacted with a curious optimism, the stock rising 8% on Wednesday. Perhaps investors are anticipating ‘strategic alternatives’ – a polite euphemism for asset stripping or a complete takeover. A sale, naturally, would deliver a ‘chunky exit’ for shareholders. Even if FMC remains independent, a stabilization of its decaying business would be a welcome, if improbable, development. The stock now trades at a mere 8.5 times forward earnings. One might venture that the downside is limited, though the upside remains, at best, speculative.
Camping World
An 86% dividend cut is regrettable. A complete suspension of distributions, however, is a statement. Camping World, following the announcement, experienced a predictable decline – 17% on Wednesday. A rough quarter, naturally, and the inevitable consequence of unsustainable payouts. It is worth noting that this is not the first such reduction. Three years prior, the quarterly disbursement was trimmed by a substantial 80%. A pattern emerges.
The company, a dominant force in the recreational vehicle market (with a 13% share), managed to eke out a modest increase in revenue in 2025, following two years of decline. The fourth quarter, however, proved disappointing. And the company warns of excess inventory needing to be cleared in the first half of 2026. The pause on dividends is, naturally, intended to address the mounting debt. A familiar refrain.
The Wednesday drop, one suspects, was an overreaction. Camping World remains the undisputed leader in a cyclical industry that will, eventually, recover its momentum. The stock’s market capitalization surrendered more than three years of dividends in a single day. A rather dramatic illustration of investor sentiment. One anticipates, however, that Camping World will be in a considerably better position three years hence. Or, at least, one hopes so. Sentiment, after all, is a fickle mistress.
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2026-02-26 18:13