FINNING INTERNATIONAL INC (FTT.CA) Stock Fundamental Analysis
TSX:FTT - Toronto Stock Exchange - CA3180714048 - Common Stock - Currency: CAD
Taking everything into account, FTT scores 6 out of 10 in our fundamental rating. FTT was compared to 13 industry peers in the Trading Companies & Distributors industry. While FTT has a great profitability rating, there are some minor concerns on its financial health. FTT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. FTT also has an excellent dividend rating. With these ratings, FTT could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year FTT was profitable.
FTT had a positive operating cash flow in the past year.
In the past 5 years FTT has always been profitable.
In the past 5 years FTT always reported a positive cash flow from operatings.
1.2 Ratios
FTT has a Return On Assets of 6.58%. This is in the better half of the industry: FTT outperforms 76.92% of its industry peers.
With an excellent Return On Equity value of 19.36%, FTT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.20%, FTT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTT is above the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 19.36% | ||
| ROIC | 11.2% |
ROA(3y)6.81%
ROA(5y)6.15%
ROE(3y)20.25%
ROE(5y)17.39%
ROIC(3y)11.8%
ROIC(5y)10.15%
1.3 Margins
With an excellent Profit Margin value of 4.54%, FTT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
FTT's Profit Margin has improved in the last couple of years.
FTT has a Operating Margin of 7.43%. This is amongst the best in the industry. FTT outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of FTT has grown nicely.
FTT has a Gross Margin of 22.43%. This is in the better half of the industry: FTT outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of FTT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.43% | ||
| PM (TTM) | 4.54% | ||
| GM | 22.43% |
OM growth 3Y0.45%
OM growth 5Y5.86%
PM growth 3Y-3.09%
PM growth 5Y7.97%
GM growth 3Y-3.61%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FTT is still creating some value.
Compared to 1 year ago, FTT has less shares outstanding
The number of shares outstanding for FTT has been reduced compared to 5 years ago.
Compared to 1 year ago, FTT has an improved debt to assets ratio.
2.2 Solvency
FTT has an Altman-Z score of 3.07. This indicates that FTT is financially healthy and has little risk of bankruptcy at the moment.
FTT has a Altman-Z score of 3.07. This is comparable to the rest of the industry: FTT outperforms 53.85% of its industry peers.
FTT has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as FTT would need 2.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.92, FTT is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that FTT is somewhat dependend on debt financing.
FTT has a worse Debt to Equity ratio (0.95) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.31
WACC8.55%
2.3 Liquidity
FTT has a Current Ratio of 1.65. This is a normal value and indicates that FTT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.65, FTT is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that FTT may have some problems paying its short term obligations.
FTT has a worse Quick ratio (0.81) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
FTT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.98%.
FTT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.09% yearly.
Looking at the last year, FTT shows a small growth in Revenue. The Revenue has grown by 6.45% in the last year.
The Revenue has been growing slightly by 7.47% on average over the past years.
EPS 1Y (TTM)1.98%
EPS 3Y18.31%
EPS 5Y17.09%
EPS Q2Q%72.88%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%7.32%
3.2 Future
FTT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.73% yearly.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y10.45%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y2.72%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 10.95, the valuation of FTT can be described as very reasonable.
61.54% of the companies in the same industry are more expensive than FTT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FTT to the average of the S&P500 Index (28.98), we can say FTT is valued rather cheaply.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent valuation of FTT.
69.23% of the companies in the same industry are more expensive than FTT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. FTT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTT indicates a rather cheap valuation: FTT is cheaper than 84.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTT indicates a rather cheap valuation: FTT is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
FTT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FTT's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)1.05
PEG (5Y)0.64
EPS Next 2Y10.29%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
FTT has a Yearly Dividend Yield of 2.76%.
Compared to an average industry Dividend Yield of 4.22, FTT pays a bit more dividend than its industry peers.
FTT's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of FTT has a limited annual growth rate of 5.85%.
FTT has been paying a dividend for at least 10 years, so it has a reliable track record.
FTT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.85%
Div Incr Years23
Div Non Decr Years32
5.3 Sustainability
29.67% of the earnings are spent on dividend by FTT. This is a low number and sustainable payout ratio.
FTT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.67%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
TSX:FTT (4/29/2025, 7:00:00 PM)
39.54
+0.24 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners42.61%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap5.32B
Analysts81.54
Price Target50.55 (27.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend1.08
Dividend Growth(5Y)5.85%
DP29.67%
Div Incr Years23
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.51%
Min EPS beat(2)-29.55%
Max EPS beat(2)16.53%
EPS beat(4)2
Avg EPS beat(4)-3.92%
Min EPS beat(4)-29.55%
Max EPS beat(4)16.53%
EPS beat(8)5
Avg EPS beat(8)-2.42%
EPS beat(12)9
Avg EPS beat(12)4.72%
EPS beat(16)12
Avg EPS beat(16)6.83%
Revenue beat(2)2
Avg Revenue beat(2)6.1%
Min Revenue beat(2)2.63%
Max Revenue beat(2)9.57%
Revenue beat(4)4
Avg Revenue beat(4)7.43%
Min Revenue beat(4)2.63%
Max Revenue beat(4)11.03%
Revenue beat(8)7
Avg Revenue beat(8)9.34%
Revenue beat(12)11
Avg Revenue beat(12)12.19%
Revenue beat(16)15
Avg Revenue beat(16)10.99%
PT rev (1m)-0.22%
PT rev (3m)4.7%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)5.89%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 9.92 | ||
| P/S | 0.47 | ||
| P/FCF | 6.2 | ||
| P/OCF | 5.26 | ||
| P/B | 2.02 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 5.3 |
EPS(TTM)3.61
EY9.13%
EPS(NY)3.99
Fwd EY10.08%
FCF(TTM)6.38
FCFY16.13%
OCF(TTM)7.51
OCFY19%
SpS83.27
BVpS19.54
TBVpS15.2
PEG (NY)1.05
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 19.36% | ||
| ROCE | 18.18% | ||
| ROIC | 11.2% | ||
| ROICexc | 12.05% | ||
| ROICexgc | 13.63% | ||
| OM | 7.43% | ||
| PM (TTM) | 4.54% | ||
| GM | 22.43% | ||
| FCFM | 7.66% |
ROA(3y)6.81%
ROA(5y)6.15%
ROE(3y)20.25%
ROE(5y)17.39%
ROIC(3y)11.8%
ROIC(5y)10.15%
ROICexc(3y)12.58%
ROICexc(5y)11.09%
ROICexgc(3y)14.44%
ROICexgc(5y)12.84%
ROCE(3y)20.35%
ROCE(5y)16.71%
ROICexcg growth 3Y2.79%
ROICexcg growth 5Y7.59%
ROICexc growth 3Y4.1%
ROICexc growth 5Y8.06%
OM growth 3Y0.45%
OM growth 5Y5.86%
PM growth 3Y-3.09%
PM growth 5Y7.97%
GM growth 3Y-3.61%
GM growth 5Y-0.8%
F-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 39.03% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 4.99 | ||
| Cash Conversion | 82.53% | ||
| Profit Quality | 168.57% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.07 |
F-Score6
WACC8.55%
ROIC/WACC1.31
Cap/Depr(3y)49.48%
Cap/Depr(5y)45.49%
Cap/Sales(3y)1.77%
Cap/Sales(5y)1.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.98%
EPS 3Y18.31%
EPS 5Y17.09%
EPS Q2Q%72.88%
EPS Next Y10.45%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)6.45%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%7.32%
Revenue Next Year3.09%
Revenue Next 2Y2.72%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y-14.48%
EBIT growth 3Y15.9%
EBIT growth 5Y13.77%
EBIT Next Year53.39%
EBIT Next 3Y18.88%
EBIT Next 5YN/A
FCF growth 1Y10625%
FCF growth 3Y43.23%
FCF growth 5Y87.52%
OCF growth 1Y343.42%
OCF growth 3Y33.49%
OCF growth 5Y39.55%