TECHNIPFMC PLC (NYSE:FTI) - A Strong Contender for GARP Investors

TECHNIPFMC PLC (NYSE:FTI) emerged from our Peter Lynch-inspired stock screen as a candidate for long-term growth at a reasonable price (GARP) investors. The company demonstrates solid earnings growth, strong profitability, and a conservative financial structure—all while trading at a valuation that doesn’t overextend its fundamentals.

Why FTI Fits the Peter Lynch Strategy

• Sustainable Earnings Growth: FTI has delivered an impressive 5-year average EPS growth of 24.99%, comfortably within Lynch’s preferred range of 15-30%. This suggests the company is expanding without overheating.
• Reasonable Valuation: With a PEG ratio (5Y) of 1.07, FTI trades near fair value relative to its growth. Lynch favored PEG ratios below 1, and FTI sits just slightly above, indicating a balanced price for its growth trajectory.
• Strong Profitability: The company’s return on equity (ROE) of 26.95% is well above the 15% threshold Lynch sought, placing FTI among the top performers in its industry.
• Healthy Balance Sheet: A debt-to-equity ratio of 0.17 reflects a conservative capital structure, aligning with Lynch’s preference for companies with minimal debt.
• Liquidity Check: The current ratio of 1.07 indicates sufficient short-term financial flexibility, though investors should note this is below some industry peers.

Fundamental Highlights

FTI’s fundamental report highlights its strengths:

• Profitability: High ROE and improving margins signal efficient operations.
• Financial Health: Low debt and positive free cash flow support stability.
• Valuation: P/E and forward P/E ratios suggest the stock is reasonably priced compared to industry and S&P 500 averages.

While FTI’s dividend yield is modest at 0.63%, its focus on reinvestment aligns with growth-oriented strategies.

For more stocks matching the Peter Lynch criteria, explore our Peter Lynch Strategy screener.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.