FINNING INTERNATIONAL INC (FTT.CA) Stock Fundamental Analysis
TSX:FTT - Toronto Stock Exchange - CA3180714048 - Common Stock - Currency: CAD
FTT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. FTT has an excellent profitability rating, but there are some minor concerns on its financial health. FTT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FTT was profitable.
In the past year FTT had a positive cash flow from operations.
In the past 5 years FTT has always been profitable.
Each year in the past 5 years FTT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.07%, FTT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
FTT has a Return On Equity of 18.38%. This is amongst the best in the industry. FTT outperforms 100.00% of its industry peers.
FTT has a Return On Invested Capital of 11.09%. This is amongst the best in the industry. FTT outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTT is above the industry average of 7.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 18.38% | ||
| ROIC | 11.09% |
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
FTT's Profit Margin of 4.30% is fine compared to the rest of the industry. FTT outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of FTT has grown nicely.
FTT has a better Operating Margin (7.39%) than 76.92% of its industry peers.
FTT's Operating Margin has improved in the last couple of years.
The Gross Margin of FTT (22.05%) is better than 61.54% of its industry peers.
FTT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.3% | ||
| GM | 22.05% |
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
FTT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
FTT has a better debt/assets ratio than last year.
2.2 Solvency
FTT has an Altman-Z score of 3.27. This indicates that FTT is financially healthy and has little risk of bankruptcy at the moment.
FTT has a Altman-Z score of 3.27. This is comparable to the rest of the industry: FTT outperforms 46.15% of its industry peers.
The Debt to FCF ratio of FTT is 2.19, which is a good value as it means it would take FTT, 2.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.19, FTT is doing good in the industry, outperforming 69.23% of the companies in the same industry.
FTT has a Debt/Equity ratio of 0.97. This is a neutral value indicating FTT is somewhat dependend on debt financing.
The Debt to Equity ratio of FTT (0.97) is worse than 69.23% of its industry peers.
Even though the debt/equity ratio score it not favorable for FTT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.24
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.60 indicates that FTT should not have too much problems paying its short term obligations.
The Current ratio of FTT (1.60) is worse than 76.92% of its industry peers.
A Quick Ratio of 0.76 indicates that FTT may have some problems paying its short term obligations.
The Quick ratio of FTT (0.76) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
FTT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.74%.
Measured over the past years, FTT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.09% on average per year.
Looking at the last year, FTT shows a small growth in Revenue. The Revenue has grown by 6.61% in the last year.
The Revenue has been growing slightly by 7.47% on average over the past years.
EPS 1Y (TTM)7.74%
EPS 3Y18.31%
EPS 5Y17.09%
EPS Q2Q%17.86%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%7.25%
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.
FTT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y10.45%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y2.61%
Revenue Next 3Y2.91%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 15.97, FTT is valued correctly.
61.54% of the companies in the same industry are more expensive than FTT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. FTT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.68, which indicates a correct valuation of FTT.
Based on the Price/Forward Earnings ratio, FTT is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FTT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
FTT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTT is cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FTT is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FTT 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)1.53
PEG (5Y)0.93
EPS Next 2Y10.29%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, FTT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.52, FTT has a dividend in line with its industry peers.
FTT's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of FTT has a limited annual growth rate of 5.85%.
FTT has paid a dividend for at least 10 years, which is a reliable track record.
FTT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.85%
Div Incr Years23
Div Non Decr Years32
5.3 Sustainability
30.89% of the earnings are spent on dividend by FTT. This is a low number and sustainable payout ratio.
The dividend of FTT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.89%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
TSX:FTT (7/11/2025, 7:00:00 PM)
60.05
+0.06 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners38.65%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap8.08B
Analysts80
Price Target58.14 (-3.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend1.08
Dividend Growth(5Y)5.85%
DP30.89%
Div Incr Years23
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.96%
Min EPS beat(2)13.39%
Max EPS beat(2)16.53%
EPS beat(4)3
Avg EPS beat(4)0.19%
Min EPS beat(4)-29.55%
Max EPS beat(4)16.53%
EPS beat(8)5
Avg EPS beat(8)-3.93%
EPS beat(12)9
Avg EPS beat(12)4.43%
EPS beat(16)13
Avg EPS beat(16)7.86%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)2.63%
Max Revenue beat(2)4.47%
Revenue beat(4)4
Avg Revenue beat(4)6.92%
Min Revenue beat(4)2.63%
Max Revenue beat(4)11.03%
Revenue beat(8)7
Avg Revenue beat(8)7.18%
Revenue beat(12)11
Avg Revenue beat(12)11.48%
Revenue beat(16)15
Avg Revenue beat(16)10.92%
PT rev (1m)15.54%
PT rev (3m)14.77%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)7.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 13.68 | ||
| P/S | 0.71 | ||
| P/FCF | 6.76 | ||
| P/OCF | 6.04 | ||
| P/B | 3.02 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)3.76
EY6.26%
EPS(NY)4.39
Fwd EY7.31%
FCF(TTM)8.88
FCFY14.79%
OCF(TTM)9.94
OCFY16.55%
SpS85.01
BVpS19.89
TBVpS15.91
PEG (NY)1.53
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.07% | ||
| ROE | 18.38% | ||
| ROCE | 18.3% | ||
| ROIC | 11.09% | ||
| ROICexc | 12.03% | ||
| ROICexgc | 13.44% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.3% | ||
| GM | 22.05% | ||
| FCFM | 10.45% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 36.13% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 4.94 | ||
| Cash Conversion | 108% | ||
| Profit Quality | 242.89% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.27 |
F-Score6
WACC8.94%
ROIC/WACC1.24
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)7.74%
EPS 3Y18.31%
EPS 5Y17.09%
EPS Q2Q%17.86%
EPS Next Y10.45%
EPS Next 2Y10.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)6.61%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%7.25%
Revenue Next Year3%
Revenue Next 2Y2.61%
Revenue Next 3Y2.91%
Revenue Next 5YN/A
EBIT growth 1Y-8.15%
EBIT growth 3Y15.9%
EBIT growth 5Y13.77%
EBIT Next Year53.86%
EBIT Next 3Y17.3%
EBIT Next 5YN/A
FCF growth 1Y1166.96%
FCF growth 3Y43.23%
FCF growth 5Y87.52%
OCF growth 1Y1137.96%
OCF growth 3Y33.49%
OCF growth 5Y39.55%