FTI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. FTI has an excellent profitability rating, but there are some minor concerns on its financial health. FTI is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

FTI had positive earnings in the past year.
In the past year FTI had a positive cash flow from operations.
In multiple years FTI reported negative net income over the last 5 years.
In the past 5 years FTI always reported a positive cash flow from operatings.

1.2 Ratios

FTI's Return On Assets of 9.23% is amongst the best of the industry. FTI outperforms 91.80% of its industry peers.
Looking at the Return On Equity, with a value of 28.42%, FTI belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
FTI has a better Return On Invested Capital (14.51%) than 96.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTI is significantly below the industry average of 12.88%.
The 3 year average ROIC (6.55%) for FTI is below the current ROIC(14.51%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	9.23%
ROE	28.42%
ROIC	14.51%

ROA(3y)2.66%

ROA(5y)-1.72%

ROE(3y)8.58%

ROE(5y)-10.61%

ROIC(3y)6.55%

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 9.67%, FTI belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
In the last couple of years the Profit Margin of FTI has grown nicely.
The Operating Margin of FTI (13.21%) is better than 70.49% of its industry peers.
In the last couple of years the Operating Margin of FTI has grown nicely.
FTI's Gross Margin of 20.94% is on the low side compared to the rest of the industry. FTI is outperformed by 68.85% of its industry peers.
In the last couple of years the Gross Margin of FTI has grown nicely.

		Industry Rank	Sector Rank
OM	13.21%
PM (TTM)	9.67%
GM	20.94%

OM growth 3Y90%

OM growth 5Y46.09%

PM growth 3Y257.56%

PM growth 5YN/A

GM growth 3Y13.81%

GM growth 5Y4.5%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FTI is still creating some value.
The number of shares outstanding for FTI has been reduced compared to 1 year ago.
FTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FTI has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.87 indicates that FTI is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTI has a better Altman-Z score (2.87) than 73.77% of its industry peers.
FTI has a debt to FCF ratio of 0.35. This is a very positive value and a sign of high solvency as it would only need 0.35 years to pay back of all of its debts.
FTI has a better Debt to FCF ratio (0.35) than 90.16% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that FTI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, FTI is doing good in the industry, outperforming 75.41% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	0.35
Altman-Z	2.87

ROIC/WACC1.6

WACC9.06%

2.3 Liquidity

A Current Ratio of 1.13 indicates that FTI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, FTI is doing worse than 83.61% of the companies in the same industry.
FTI has a Quick Ratio of 1.13. This is a bad value and indicates that FTI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.87, FTI is not doing good in the industry: 85.25% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.13
Quick Ratio	0.87

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 60.84% over the past year.
Measured over the past years, FTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.99% on average per year.
Looking at the last year, FTI shows a quite strong growth in Revenue. The Revenue has grown by 11.25% in the last year.
FTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.50% yearly.

EPS 1Y (TTM)60.84%

EPS 3Y357.37%

EPS 5Y24.99%

EPS Q2Q%17.19%

Revenue 1Y (TTM)11.25%

Revenue growth 3Y12.36%

Revenue growth 5Y5.5%

Sales Q2Q%12.73%

3.2 Future

Based on estimates for the next years, FTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.11% on average per year.
The Revenue is expected to grow by 4.33% on average over the next years.

EPS Next Y24.56%

EPS Next 2Y24.26%

EPS Next 3Y22.64%

EPS Next 5Y16.11%

Revenue Next Year10.32%

Revenue Next 2Y8.65%

Revenue Next 3Y7.65%

Revenue Next 5Y4.33%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.54, FTI is valued on the expensive side.
FTI's Price/Earnings ratio is a bit cheaper when compared to the industry. FTI is cheaper than 62.30% of the companies in the same industry.
FTI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.41.
FTI is valuated rather expensively with a Price/Forward Earnings ratio of 19.98.
FTI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FTI to the average of the S&P500 Index (25.64), we can say FTI is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	24.54
Fwd PE	19.98

4.2 Price Multiples

78.69% of the companies in the same industry are cheaper than FTI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTI is valued a bit cheaper than 68.85% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.82
EV/EBITDA	12.79

4.3 Compensation for Growth

FTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FTI has a very decent profitability rating, which may justify a higher PE ratio.
FTI's earnings are expected to grow with 22.64% in the coming years. This may justify a more expensive valuation.

PEG (NY)1

PEG (5Y)0.98

EPS Next 2Y24.26%

EPS Next 3Y22.64%

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5. Dividend

5.1 Amount

FTI has a yearly dividend return of 0.36%, which is pretty low.
Compared to an average industry Dividend Yield of 1.12, FTI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.83, FTI's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.36%

5.2 History

The dividend of FTI decreases each year by -17.29%.
FTI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FTI decreased recently.

Dividend Growth(5Y)-17.29%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

FTI pays out 8.81% of its income as dividend. This is a sustainable payout ratio.

DP8.81%

EPS Next 2Y24.26%

EPS Next 3Y22.64%

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TECHNIPFMC PLC / FTI FAQ

Can you provide the ChartMill fundamental rating for TECHNIPFMC PLC?

ChartMill assigns a fundamental rating of 6 / 10 to FTI.

What is the valuation status of TECHNIPFMC PLC (FTI) stock?

ChartMill assigns a valuation rating of 5 / 10 to TECHNIPFMC PLC (FTI). This can be considered as Fairly Valued.

Can you provide the profitability details for TECHNIPFMC PLC?

TECHNIPFMC PLC (FTI) has a profitability rating of 7 / 10.

Can you provide the PE and PB ratios for FTI stock?

The Price/Earnings (PE) ratio for TECHNIPFMC PLC (FTI) is 24.54 and the Price/Book (PB) ratio is 6.86.

Can you provide the dividend sustainability for FTI stock?

The dividend rating of TECHNIPFMC PLC (FTI) is 3 / 10 and the dividend payout ratio is 8.81%.