TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
NYSE:FTI - New York Stock Exchange, Inc. - GB00BDSFG982 - Common Stock - Currency: USD
Taking everything into account, FTI scores 5 out of 10 in our fundamental rating. FTI was compared to 62 industry peers in the Energy Equipment & Services industry. FTI scores excellent on profitability, but there are some minor concerns on its financial health. FTI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FTI was profitable.
FTI had a positive operating cash flow in the past year.
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's Return On Assets of 8.54% is fine compared to the rest of the industry. FTI outperforms 74.19% of its industry peers.
With an excellent Return On Equity value of 27.24%, FTI belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.40%, FTI belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTI is in line with the industry average of 8.16%.
The last Return On Invested Capital (11.40%) for FTI is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 27.24% | ||
| ROIC | 11.4% |
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
FTI has a better Profit Margin (9.28%) than 67.74% of its industry peers.
FTI's Profit Margin has improved in the last couple of years.
The Operating Margin of FTI (10.82%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FTI has grown nicely.
FTI has a Gross Margin of 18.97%. This is in the lower half of the industry: FTI underperforms 70.97% of its industry peers.
FTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.82% | ||
| PM (TTM) | 9.28% | ||
| GM | 18.97% |
OM growth 3Y90%
OM growth 5Y46.09%
PM growth 3Y257.56%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
2. Health
2.1 Basic Checks
FTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Based on the Altman-Z score of 1.66, we must say that FTI is in the distress zone and has some risk of bankruptcy.
FTI has a Altman-Z score of 1.66. This is comparable to the rest of the industry: FTI outperforms 46.77% of its industry peers.
FTI has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.47, FTI belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that FTI is not too dependend on debt financing.
FTI has a Debt to Equity ratio of 0.21. This is in the better half of the industry: FTI outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.32
WACC8.62%
2.3 Liquidity
FTI has a Current Ratio of 1.12. This is a normal value and indicates that FTI is financially healthy and should not expect problems in meeting its short term obligations.
FTI's Current ratio of 1.12 is on the low side compared to the rest of the industry. FTI is outperformed by 93.55% of its industry peers.
FTI has a Quick Ratio of 1.12. This is a bad value and indicates that FTI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FTI (0.88) is worse than 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 306.67% 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 16.09% 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)306.67%
EPS 3Y357.37%
EPS 5Y24.99%
EPS Q2Q%285.71%
Revenue 1Y (TTM)16.09%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%13.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
FTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y15.81%
EPS Next 2Y18.14%
EPS Next 3Y17.5%
EPS Next 5Y8.9%
Revenue Next Year9.82%
Revenue Next 2Y8.16%
Revenue Next 3Y6.68%
Revenue Next 5Y4.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FTI is valuated correctly with a Price/Earnings ratio of 13.96.
Compared to the rest of the industry, the Price/Earnings ratio of FTI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FTI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.05, the valuation of FTI can be described as correct.
FTI's Price/Forward Earnings ratio is in line with the industry average.
FTI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTI is valued a bit more expensive than 75.81% of the companies in the same industry.
FTI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 7.68 |
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 17.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.56
EPS Next 2Y18.14%
EPS Next 3Y17.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, FTI is not a good candidate for dividend investing.
In the last 3 months the price of FTI has falen by -21.58%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FTI's Dividend Yield is comparable with the industry average which is at 4.40.
Compared to an average S&P500 Dividend Yield of 2.57, FTI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of FTI decreases each year by -17.29%.
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)-17.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FTI pays out 10.19% of its income as dividend. This is a sustainable payout ratio.
DP10.19%
EPS Next 2Y18.14%
EPS Next 3Y17.5%
25.54
+0.55 (+2.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.34%
Inst Owner Change-0.03%
Ins Owners0.99%
Ins Owner Change9.33%
Market Cap10.74B
Analysts80
Price Target34.96 (36.88%)
Short Float %1.95%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.2
Dividend Growth(5Y)-17.29%
DP10.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.75%
Min EPS beat(2)52.13%
Max EPS beat(2)63.37%
EPS beat(4)4
Avg EPS beat(4)48.24%
Min EPS beat(4)38.25%
Max EPS beat(4)63.37%
EPS beat(8)6
Avg EPS beat(8)10.24%
EPS beat(12)6
Avg EPS beat(12)-100.59%
EPS beat(16)7
Avg EPS beat(16)-227.38%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)1.91%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-0.83%
Max Revenue beat(4)2.99%
Revenue beat(8)7
Avg Revenue beat(8)2.56%
Revenue beat(12)9
Avg Revenue beat(12)1.41%
Revenue beat(16)11
Avg Revenue beat(16)0.79%
PT rev (1m)0.15%
PT rev (3m)2.3%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)4.43%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.05 | ||
| P/S | 1.18 | ||
| P/FCF | 15.81 | ||
| P/OCF | 11.18 | ||
| P/B | 3.47 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)1.83
EY7.17%
EPS(NY)2.12
Fwd EY8.3%
FCF(TTM)1.62
FCFY6.33%
OCF(TTM)2.28
OCFY8.95%
SpS21.6
BVpS7.36
TBVpS6.15
PEG (NY)0.88
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 27.24% | ||
| ROCE | 19.63% | ||
| ROIC | 11.4% | ||
| ROICexc | 14.86% | ||
| ROICexgc | 17.12% | ||
| OM | 10.82% | ||
| PM (TTM) | 9.28% | ||
| GM | 18.97% | ||
| FCFM | 7.48% |
ROA(3y)2.66%
ROA(5y)-1.72%
ROE(3y)8.58%
ROE(5y)-10.61%
ROIC(3y)6.55%
ROIC(5y)N/A
ROICexc(3y)8.36%
ROICexc(5y)N/A
ROICexgc(3y)9.72%
ROICexgc(5y)N/A
ROCE(3y)11.29%
ROCE(5y)N/A
ROICexcg growth 3Y120.68%
ROICexcg growth 5Y29.85%
ROICexc growth 3Y124.98%
ROICexc growth 5Y78.94%
OM growth 3Y90%
OM growth 5Y46.09%
PM growth 3Y257.56%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
F-Score8
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 71.71% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 15.57 | ||
| Cash Conversion | 69.88% | ||
| Profit Quality | 80.6% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.66 |
F-Score8
WACC8.62%
ROIC/WACC1.32
Cap/Depr(3y)57.73%
Cap/Depr(5y)57.63%
Cap/Sales(3y)2.78%
Cap/Sales(5y)3.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)306.67%
EPS 3Y357.37%
EPS 5Y24.99%
EPS Q2Q%285.71%
EPS Next Y15.81%
EPS Next 2Y18.14%
EPS Next 3Y17.5%
EPS Next 5Y8.9%
Revenue 1Y (TTM)16.09%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%13.94%
Revenue Next Year9.82%
Revenue Next 2Y8.16%
Revenue Next 3Y6.68%
Revenue Next 5Y4.86%
EBIT growth 1Y85.68%
EBIT growth 3Y113.48%
EBIT growth 5Y54.12%
EBIT Next Year75.64%
EBIT Next 3Y27.69%
EBIT Next 5Y14.58%
FCF growth 1Y45.23%
FCF growth 3Y4.84%
FCF growth 5Y11.51%
OCF growth 1Y38.67%
OCF growth 3Y7.14%
OCF growth 5Y2.52%