TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FTI - GB00BDSFG982 - Common Stock
54.665 USD
+0.7 (+1.29%)
Taking everything into account, FTI scores 6 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.
- 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.
- FTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 9.23%, FTI belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.42%, FTI belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
- FTI has a Return On Invested Capital of 14.51%. This is amongst the best in the industry. FTI outperforms 96.77% of its industry peers.
- FTI had an Average Return On Invested Capital over the past 3 years of 6.55%. This is significantly below the industry average of 12.77%.
- 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
- FTI's Profit Margin of 9.67% is fine compared to the rest of the industry. FTI outperforms 79.03% of its industry peers.
- FTI's Profit Margin has improved in the last couple of years.
- FTI has a better Operating Margin (13.21%) than 70.97% 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 67.74% of its industry peers.
- 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%
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.
- Compared to 1 year ago, FTI has less shares outstanding
- 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 2.81. 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.
- FTI has a Altman-Z score of 2.81. This is in the better half of the industry: FTI outperforms 70.97% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 0.35, FTI belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- FTI has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.14, FTI is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | 2.81 |
ROIC/WACC1.6
WACC9.05%
2.3 Liquidity
- FTI has a Current Ratio of 1.13. This is a normal value and indicates that FTI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.13, FTI is doing worse than 83.87% of the companies in the same industry.
- A Quick Ratio of 0.87 indicates that FTI may have some problems paying its short term obligations.
- FTI has a Quick ratio of 0.87. This is amonst the worse of the industry: FTI underperforms 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.87 |
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.
- FTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.25%.
- 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 Y25.16%
EPS Next 2Y24.44%
EPS Next 3Y22.87%
EPS Next 5Y16.11%
Revenue Next Year10.31%
Revenue Next 2Y8.64%
Revenue Next 3Y7.68%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.77 indicates a rather expensive valuation of FTI.
- Based on the Price/Earnings ratio, FTI is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, FTI is valued at the same level.
- A Price/Forward Earnings ratio of 19.29 indicates a rather expensive valuation of FTI.
- 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 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
- FTI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FTI is more expensive than 79.03% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FTI is valued a bit cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 12.38 |
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.
- FTI's earnings are expected to grow with 22.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)0.95
EPS Next 2Y24.44%
EPS Next 3Y22.87%
5. Dividend
5.1 Amount
- FTI has a yearly dividend return of 0.38%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.17, 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 | 0.38% |
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 2Y24.44%
EPS Next 3Y22.87%
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 23.77 and the Price/Book (PB) ratio is 6.64.
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%.