TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
NYSE:FTI - New York Stock Exchange, Inc. - GB00BDSFG982 - Common Stock - Currency: USD
Overall FTI gets a fundamental rating of 5 out of 10. We evaluated FTI against 59 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of FTI get a neutral evaluation. Nothing too spectacular is happening here. FTI is not valued too expensively and it also shows a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: FTI reported negative net income in multiple years.
In the past 5 years FTI always reported a positive cash flow from operatings.
1.2 Ratios
FTI has a better Return On Assets (6.90%) than 67.24% of its industry peers.
With an excellent Return On Equity value of 20.59%, FTI belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
FTI's Return On Invested Capital of 14.01% is amongst the best of the industry. FTI outperforms 87.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTI is below the industry average of 8.19%.
The last Return On Invested Capital (14.01%) for FTI is above the 3 year average (4.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 20.59% | ||
| ROIC | 14.01% |
ROA(3y)-0.14%
ROA(5y)-5.48%
ROE(3y)-0.38%
ROE(5y)-22.36%
ROIC(3y)4.18%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 7.63%, FTI is doing good in the industry, outperforming 60.34% of the companies in the same industry.
Looking at the Operating Margin, with a value of 10.40%, FTI is in line with its industry, outperforming 56.90% of the companies in the same industry.
In the last couple of years the Operating Margin of FTI has declined.
The Gross Margin of FTI (19.25%) is worse than 72.41% of its industry peers.
In the last couple of years the Gross Margin of FTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 7.63% | ||
| GM | 19.25% |
OM growth 3YN/A
OM growth 5Y-2.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.24%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FTI is creating some value.
Compared to 1 year ago, FTI has less shares outstanding
Compared to 5 years ago, FTI has less shares outstanding
The debt/assets ratio for FTI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that FTI is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTI has a Altman-Z score (1.85) which is comparable to the rest of the industry.
The Debt to FCF ratio of FTI is 1.29, which is an excellent value as it means it would take FTI, only 1.29 years of fcf income to pay off all of its debts.
FTI has a better Debt to FCF ratio (1.29) than 82.76% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that FTI is not too dependend on debt financing.
FTI has a Debt to Equity ratio of 0.22. This is in the better half of the industry: FTI outperforms 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.29 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.6
WACC8.73%
2.3 Liquidity
FTI has a Current Ratio of 1.14. This is a normal value and indicates that FTI is financially healthy and should not expect problems in meeting its short term obligations.
FTI has a Current ratio of 1.14. This is amonst the worse of the industry: FTI underperforms 93.10% of its industry peers.
A Quick Ratio of 0.87 indicates that FTI may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, FTI is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 450.00% over the past year.
FTI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.42% yearly.
FTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.18%.
FTI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.02% yearly.
EPS 1Y (TTM)450%
EPS 3Y33.3%
EPS 5Y-10.42%
EPS Q2Q%204.76%
Revenue 1Y (TTM)18.18%
Revenue growth 3Y6.21%
Revenue growth 5Y-9.02%
Sales Q2Q%14.17%
3.2 Future
The Earnings Per Share is expected to grow by 46.16% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.98% on average over the next years.
EPS Next Y267.84%
EPS Next 2Y112.37%
EPS Next 3Y78.25%
EPS Next 5Y46.16%
Revenue Next Year17.21%
Revenue Next 2Y13.41%
Revenue Next 3Y11.93%
Revenue Next 5Y7.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTI is valuated rather expensively with a Price/Earnings ratio of 20.37.
FTI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. FTI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.35, the valuation of FTI can be described as correct.
FTI's Price/Forward Earnings is on the same level as the industry average.
FTI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTI is valued a bit more expensive than 74.14% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 10.18 |
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.
A more expensive valuation may be justified as FTI's earnings are expected to grow with 78.25% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y112.37%
EPS Next 3Y78.25%
5. Dividend
5.1 Amount
FTI has a yearly dividend return of 0.66%, which is pretty low.
FTI's Dividend Yield is comparable with the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.29, FTI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
FTI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FTI decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
12.87% of the earnings are spent on dividend by FTI. This is a low number and sustainable payout ratio.
DP12.87%
EPS Next 2Y112.37%
EPS Next 3Y78.25%
29.13
-1.35 (-4.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.34%
Inst Owner Change-0.32%
Ins Owners0.99%
Ins Owner Change-0.22%
Market Cap12.39B
Analysts80.69
Price Target34.5 (18.43%)
Short Float %1.76%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP12.87%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.3%
Min EPS beat(2)39.22%
Max EPS beat(2)63.37%
EPS beat(4)4
Avg EPS beat(4)39.24%
Min EPS beat(4)16.11%
Max EPS beat(4)63.37%
EPS beat(8)5
Avg EPS beat(8)-28.19%
EPS beat(12)5
Avg EPS beat(12)-248.22%
EPS beat(16)6
Avg EPS beat(16)-235.38%
Revenue beat(2)1
Avg Revenue beat(2)1.08%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)2.99%
Revenue beat(4)3
Avg Revenue beat(4)3.15%
Min Revenue beat(4)-0.83%
Max Revenue beat(4)8.38%
Revenue beat(8)7
Avg Revenue beat(8)2.44%
Revenue beat(12)8
Avg Revenue beat(12)0.83%
Revenue beat(16)10
Avg Revenue beat(16)-2.65%
PT rev (1m)1.07%
PT rev (3m)12.08%
EPS NQ rev (1m)2.89%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0.48%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 14.35 | ||
| P/S | 1.41 | ||
| P/FCF | 14.47 | ||
| P/OCF | 11.44 | ||
| P/B | 3.8 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)1.43
EY4.91%
EPS(NY)2.03
Fwd EY6.97%
FCF(TTM)2.01
FCFY6.91%
OCF(TTM)2.55
OCFY8.74%
SpS20.67
BVpS7.66
TBVpS6.39
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 20.59% | ||
| ROCE | 17.73% | ||
| ROIC | 14.01% | ||
| ROICexc | 16.82% | ||
| ROICexgc | 19.25% | ||
| OM | 10.4% | ||
| PM (TTM) | 7.63% | ||
| GM | 19.25% | ||
| FCFM | 9.74% |
ROA(3y)-0.14%
ROA(5y)-5.48%
ROE(3y)-0.38%
ROE(5y)-22.36%
ROIC(3y)4.18%
ROIC(5y)N/A
ROICexc(3y)5.23%
ROICexc(5y)N/A
ROICexgc(3y)6.18%
ROICexgc(5y)N/A
ROCE(3y)5.29%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-27.23%
ROICexc growth 3YN/A
ROICexc growth 5Y6.02%
OM growth 3YN/A
OM growth 5Y-2.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.24%
GM growth 5Y-2.12%
F-Score8
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.29 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 59.69% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.66% | ||
| Profit Quality | 127.58% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.85 |
F-Score8
WACC8.73%
ROIC/WACC1.6
Cap/Depr(3y)50.4%
Cap/Depr(5y)61.13%
Cap/Sales(3y)2.74%
Cap/Sales(5y)3.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)450%
EPS 3Y33.3%
EPS 5Y-10.42%
EPS Q2Q%204.76%
EPS Next Y267.84%
EPS Next 2Y112.37%
EPS Next 3Y78.25%
EPS Next 5Y46.16%
Revenue 1Y (TTM)18.18%
Revenue growth 3Y6.21%
Revenue growth 5Y-9.02%
Sales Q2Q%14.17%
Revenue Next Year17.21%
Revenue Next 2Y13.41%
Revenue Next 3Y11.93%
Revenue Next 5Y7.98%
EBIT growth 1Y123.37%
EBIT growth 3YN/A
EBIT growth 5Y-10.95%
EBIT Next Year190.65%
EBIT Next 3Y61.31%
EBIT Next 5Y34.56%
FCF growth 1Y648.51%
FCF growth 3Y8.61%
FCF growth 5YN/A
OCF growth 1Y302.38%
OCF growth 3Y1.8%
OCF growth 5YN/A