We assign a fundamental rating of 6 out of 10 to FTI. FTI was compared to 61 industry peers in the Energy Equipment & Services industry. While FTI has a great profitability rating, 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

In the past year FTI was profitable.
In the past year FTI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FTI reported negative net income in multiple years.
FTI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 9.23%, FTI belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
The Return On Equity of FTI (28.42%) is better than 96.72% of its industry peers.
FTI has a better Return On Invested Capital (14.51%) than 96.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTI is significantly below the industry average of 12.90%.
The last Return On Invested Capital (14.51%) for FTI is above the 3 year average (6.55%), which is a sign of increasing profitability.

		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

The Profit Margin of FTI (9.67%) is better than 78.69% of its industry peers.
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.
FTI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.94%, FTI is not doing good in the industry: 68.85% of the companies in the same industry are doing better.
FTI's Gross Margin has improved in the last couple of years.

		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.
FTI has less shares outstanding than it did 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

FTI has an Altman-Z score of 2.87. This is not the best score and indicates that FTI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, FTI is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
The Debt to FCF ratio of FTI is 0.35, which is an excellent value as it means it would take FTI, only 0.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FTI (0.35) is better than 90.16% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that FTI is not too dependend on debt financing.
FTI has a better Debt to Equity ratio (0.14) than 75.41% of its industry peers.

		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.
FTI has a Current ratio of 1.13. This is amonst the worse of the industry: FTI underperforms 83.61% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.87, FTI is doing worse than 85.25% of the companies in the same industry.

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

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.
FTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.

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

The Price/Earnings ratio is 24.19, which indicates a rather expensive current valuation of FTI.
62.30% of the companies in the same industry are more expensive than FTI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.87, FTI is valued at the same level.
FTI is valuated rather expensively with a Price/Forward Earnings ratio of 19.69.
The rest of the industry has a similar Price/Forward Earnings ratio as FTI.
FTI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	24.19
Fwd PE	19.69

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTI indicates a somewhat cheap valuation: FTI is cheaper than 67.21% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.61
EV/EBITDA	12.77

4.3 Compensation for Growth

The 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.
A more expensive valuation may be justified as FTI's earnings are expected to grow with 22.64% in the coming years.

PEG (NY)0.98

PEG (5Y)0.97

EPS Next 2Y24.26%

EPS Next 3Y22.64%

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5. Dividend

5.1 Amount

FTI has a yearly dividend return of 0.37%, which is pretty low.
Compared to an average industry Dividend Yield of 1.14, FTI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.82, FTI's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.37%

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.
FTI has decreased its dividend recently.

Dividend Growth(5Y)-17.29%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

8.81% of the earnings are spent on dividend by FTI. This is a low number and 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 24.19 and the Price/Book (PB) ratio is 6.76.

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%.