FINNING INTERNATIONAL INC (FTT.CA) Stock Fundamental Analysis
TSX:FTT - Toronto Stock Exchange - CA3180714048 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to FTT. FTT was compared to 13 industry peers in the Trading Companies & Distributors industry. FTT scores excellent on profitability, but 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.
Each year in the past 5 years FTT has been profitable.
FTT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.58%, FTT is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.36%, FTT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FTT's Return On Invested Capital of 11.20% is amongst the best of the industry. FTT outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTT is above the industry average of 7.89%.
| 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
FTT's Profit Margin of 4.54% is fine compared to the rest of the industry. FTT outperforms 76.92% of its industry peers.
FTT's Profit Margin has improved in the last couple of years.
The Operating Margin of FTT (7.43%) is better than 84.62% of its industry peers.
FTT's Operating Margin has improved in the last couple of years.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FTT is creating some value.
FTT has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.09 indicates that FTT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.09, FTT perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
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 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that FTT is somewhat dependend on debt financing.
The Debt to Equity ratio of FTT (0.95) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.16
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.65 indicates that FTT should not have too much problems paying its short term obligations.
FTT's Current ratio of 1.65 is on the low side compared to the rest of the industry. FTT is outperformed by 76.92% of its industry peers.
A Quick Ratio of 0.81 indicates that FTT may have some problems paying its short term obligations.
FTT's Quick ratio of 0.81 is on the low side compared to the rest of the industry. FTT is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.40% over the past year.
The Earnings Per Share has been growing by 19.58% on average over the past years. This is quite good.
FTT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
Measured over the past years, FTT shows a small growth in Revenue. The Revenue has been growing by 7.47% on average per year.
EPS 1Y (TTM)2.4%
EPS 3Y17%
EPS 5Y19.58%
EPS Q2Q%74.62%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%19.56%
3.2 Future
The Earnings Per Share is expected to grow by 11.99% on average over the next years. This is quite good.
FTT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y8.25%
EPS Next 2Y9.12%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y2.77%
Revenue Next 3Y3.47%
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
FTT is valuated reasonably with a Price/Earnings ratio of 11.19.
Compared to the rest of the industry, the Price/Earnings ratio of FTT indicates a somewhat cheap valuation: FTT is cheaper than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FTT is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.17, the valuation of FTT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTT indicates a somewhat cheap valuation: FTT is cheaper than 76.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FTT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than FTT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTT is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.4 | ||
| EV/EBITDA | 5.47 |
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.
PEG (NY)1.36
PEG (5Y)0.57
EPS Next 2Y9.12%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, FTT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.05, FTT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, FTT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 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
FTT pays out 29.67% of its income as dividend. This is a sustainable payout ratio.
FTT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.67%
EPS Next 2Y9.12%
EPS Next 3Y11.99%
TSX:FTT (3/7/2025, 7:00:00 PM)
40.51
+0.47 (+1.17%)
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 Cap5.49B
Analysts81.54
Price Target50.66 (25.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend1.08
Dividend Growth(5Y)5.85%
DP29.67%
Div Incr Years23
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)11.95%
Min Revenue beat(2)9.57%
Max Revenue beat(2)14.33%
Revenue beat(4)4
Avg Revenue beat(4)10.35%
Min Revenue beat(4)6.48%
Max Revenue beat(4)14.33%
Revenue beat(8)7
Avg Revenue beat(8)10.8%
Revenue beat(12)11
Avg Revenue beat(12)13.16%
Revenue beat(16)15
Avg Revenue beat(16)11.72%
PT rev (1m)4.93%
PT rev (3m)5.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.42%
EPS NY rev (1m)2.25%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 10.17 | ||
| P/S | 0.49 | ||
| P/FCF | 6.4 | ||
| P/OCF | 5.43 | ||
| P/B | 2.09 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)3.62
EY8.94%
EPS(NY)3.99
Fwd EY9.84%
FCF(TTM)6.33
FCFY15.63%
OCF(TTM)7.46
OCFY18.42%
SpS82.7
BVpS19.4
TBVpS15.09
PEG (NY)1.36
PEG (5Y)0.57
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 | 3.09 |
F-Score6
WACC9.63%
ROIC/WACC1.16
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)2.4%
EPS 3Y17%
EPS 5Y19.58%
EPS Q2Q%74.62%
EPS Next Y8.25%
EPS Next 2Y9.12%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue 1Y (TTM)6.45%
Revenue growth 3Y15.39%
Revenue growth 5Y7.47%
Sales Q2Q%19.56%
Revenue Next Year3.11%
Revenue Next 2Y2.77%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y-14.48%
EBIT growth 3Y15.9%
EBIT growth 5Y13.77%
EBIT Next Year52.91%
EBIT Next 3YN/A
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%