FIRAN TECHNOLOGY GROUP CORP (FTG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FTG - CA3180931014 - Common Stock
14.66 CAD
+0.66 (+4.71%)
Taking everything into account, FTG scores 7 out of 10 in our fundamental rating. FTG was compared to 15 industry peers in the Electronic Equipment, Instruments & Components industry. While FTG has a great profitability rating, there are some minor concerns on its financial health. FTG is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make FTG suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
- FTG had positive earnings in the past year.
- FTG had a positive operating cash flow in the past year.
- In the past 5 years FTG has always been profitable.
- FTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.36%, FTG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
- The Return On Equity of FTG (15.03%) is better than 93.33% of its industry peers.
- With an excellent Return On Invested Capital value of 13.40%, FTG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FTG is in line with the industry average of 9.87%.
- The last Return On Invested Capital (13.40%) for FTG is above the 3 year average (10.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 15.03% | ||
| ROIC | 13.4% |
ROA(3y)6.03%
ROA(5y)4%
ROE(3y)11.98%
ROE(5y)7.85%
ROIC(3y)10.14%
ROIC(5y)8.11%
1.3 Margins
- FTG has a better Profit Margin (7.51%) than 86.67% of its industry peers.
- FTG's Profit Margin has improved in the last couple of years.
- FTG has a better Operating Margin (11.89%) than 93.33% of its industry peers.
- FTG's Operating Margin has improved in the last couple of years.
- FTG has a worse Gross Margin (30.61%) than 60.00% of its industry peers.
- In the last couple of years the Gross Margin of FTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 7.51% | ||
| GM | 30.61% |
OM growth 3Y117.45%
OM growth 5Y1.51%
PM growth 3Y174.5%
PM growth 5Y4.41%
GM growth 3Y8.08%
GM growth 5Y0.29%
2. Health
2.1 Basic Checks
- FTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for FTG remains at a similar level compared to 1 year ago.
- The number of shares outstanding for FTG has been increased compared to 5 years ago.
- Compared to 1 year ago, FTG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.38 indicates that FTG is not in any danger for bankruptcy at the moment.
- FTG has a Altman-Z score (5.38) which is comparable to the rest of the industry.
- The Debt to FCF ratio of FTG is 3.31, which is a good value as it means it would take FTG, 3.31 years of fcf income to pay off all of its debts.
- FTG has a better Debt to FCF ratio (3.31) than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.39 indicates that FTG is not too dependend on debt financing.
- FTG's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. FTG is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 5.38 |
ROIC/WACC0.97
WACC13.75%
2.3 Liquidity
- FTG has a Current Ratio of 2.44. This indicates that FTG is financially healthy and has no problem in meeting its short term obligations.
- FTG's Current ratio of 2.44 is fine compared to the rest of the industry. FTG outperforms 66.67% of its industry peers.
- A Quick Ratio of 1.28 indicates that FTG should not have too much problems paying its short term obligations.
- FTG has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- FTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.22%, which is quite impressive.
- The Earnings Per Share has been growing by 10.93% on average over the past years. This is quite good.
- FTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.69%.
- The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)47.22%
EPS 3Y255.69%
EPS 5Y10.93%
EPS Q2Q%0%
Revenue 1Y (TTM)17.69%
Revenue growth 3Y26.88%
Revenue growth 5Y7.55%
Sales Q2Q%10.79%
3.2 Future
- FTG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.05% yearly.
- The Revenue is expected to grow by 15.14% on average over the next years. This is quite good.
EPS Next Y25.85%
EPS Next 2Y30.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.64%
Revenue Next 2Y15.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 27.66 indicates a quite expensive valuation of FTG.
- 93.33% of the companies in the same industry are more expensive than FTG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, FTG is valued at the same level.
- With a Price/Forward Earnings ratio of 20.64, FTG is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, FTG is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of FTG to the average of the S&P500 Index (24.32), we can say FTG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTG indicates a rather cheap valuation: FTG is cheaper than 93.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, FTG is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.53 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
- FTG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- FTG has an outstanding profitability rating, which may justify a higher PE ratio.
- FTG's earnings are expected to grow with 30.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)2.53
EPS Next 2Y30.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- FTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FIRAN TECHNOLOGY GROUP CORP / FTG.CA FAQ
What is the ChartMill fundamental rating of FIRAN TECHNOLOGY GROUP CORP (FTG.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FTG.CA.
What is the valuation status for FTG stock?
ChartMill assigns a valuation rating of 7 / 10 to FIRAN TECHNOLOGY GROUP CORP (FTG.CA). This can be considered as Undervalued.
What is the profitability of FTG stock?
FIRAN TECHNOLOGY GROUP CORP (FTG.CA) has a profitability rating of 8 / 10.
What is the valuation of FIRAN TECHNOLOGY GROUP CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FIRAN TECHNOLOGY GROUP CORP (FTG.CA) is 27.66 and the Price/Book (PB) ratio is 4.