TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
NYSE:FTI - GB00BDSFG982 - Common Stock
36.56 USD
+0.31 (+0.86%)
37.9396 USD
+1.38 (+3.77%)
Taking everything into account, FTI scores 6 out of 10 in our fundamental rating. FTI was compared to 61 industry peers in the Energy Equipment & Services industry. FTI scores excellent on profitability, but there are some minor concerns on its financial health. FTI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FTI was profitable.
FTI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FTI reported negative net income in multiple years.
FTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTI's Return On Assets of 9.03% is amongst the best of the industry. FTI outperforms 85.25% of its industry peers.
FTI has a better Return On Equity (28.01%) than 91.80% of its industry peers.
With an excellent Return On Invested Capital value of 13.67%, FTI belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTI is in line with the industry average of 8.01%.
The last Return On Invested Capital (13.67%) for FTI is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 28.01% | ||
| ROIC | 13.67% |
ROA(3y)2.66%
ROA(5y)-1.72%
ROE(3y)8.58%
ROE(5y)-10.61%
ROIC(3y)6.55%
ROIC(5y)N/A
1.3 Margins
FTI has a better Profit Margin (9.60%) than 77.05% of its industry peers.
FTI's Profit Margin has improved in the last couple of years.
FTI has a better Operating Margin (12.39%) than 67.21% of its industry peers.
In the last couple of years the Operating Margin of FTI has grown nicely.
FTI has a Gross Margin of 20.45%. This is in the lower half of the industry: FTI underperforms 68.85% of its industry peers.
In the last couple of years the Gross Margin of FTI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.39% | ||
| PM (TTM) | 9.6% | ||
| GM | 20.45% |
OM growth 3Y90%
OM growth 5Y46.09%
PM growth 3Y257.56%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FTI is still creating some value.
Compared to 1 year ago, FTI has less shares outstanding
The number of shares outstanding for FTI has been reduced compared to 5 years ago.
Compared to 1 year ago, FTI has an improved debt to assets ratio.
2.2 Solvency
FTI has an Altman-Z score of 2.13. This is not the best score and indicates that FTI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.13, FTI is doing good in the industry, outperforming 63.93% of the companies in the same industry.
The Debt to FCF ratio of FTI is 0.60, which is an excellent value as it means it would take FTI, only 0.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FTI (0.60) is better than 86.89% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that FTI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, FTI is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.55
WACC8.84%
2.3 Liquidity
FTI has a Current Ratio of 1.10. This is a normal value and indicates that FTI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, FTI is doing worse than 88.52% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that FTI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, FTI is doing worse than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
FTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.00%, which is quite impressive.
The Earnings Per Share has been growing by 24.99% on average over the past years. This is a very strong growth
The Revenue has grown by 11.55% in the past year. This is quite good.
FTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.50% yearly.
EPS 1Y (TTM)119%
EPS 3Y357.37%
EPS 5Y24.99%
EPS Q2Q%58.14%
Revenue 1Y (TTM)11.55%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%8.99%
3.2 Future
FTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.01% yearly.
FTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.53% yearly.
EPS Next Y20.62%
EPS Next 2Y20.13%
EPS Next 3Y18.4%
EPS Next 5Y12.01%
Revenue Next Year9.65%
Revenue Next 2Y8.59%
Revenue Next 3Y7.48%
Revenue Next 5Y4.53%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.69, FTI is valued correctly.
FTI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.14. FTI is valued slightly cheaper when compared to this.
FTI is valuated correctly with a Price/Forward Earnings ratio of 13.84.
FTI's Price/Forward Earnings is on the same level as the industry average.
FTI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTI indicates a slightly more expensive valuation: FTI is more expensive than 77.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FTI is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.39 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
FTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FTI may justify a higher PE ratio.
A more expensive valuation may be justified as FTI's earnings are expected to grow with 18.40% in the coming years.
PEG (NY)0.81
PEG (5Y)0.67
EPS Next 2Y20.13%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, FTI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.44, FTI has a dividend in line with its industry peers.
With a Dividend Yield of 0.57, FTI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of FTI decreases each year by -17.29%.
FTI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FTI decreased recently.
Dividend Growth(5Y)-17.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FTI pays out 9.28% of its income as dividend. This is a sustainable payout ratio.
DP9.28%
EPS Next 2Y20.13%
EPS Next 3Y18.4%
36.56
+0.31 (+0.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.85%
Inst Owner Change-1.21%
Ins Owners1.11%
Ins Owner Change-22.72%
Market Cap15.03B
Analysts77.14
Price Target41.87 (14.52%)
Short Float %2.29%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.2
Dividend Growth(5Y)-17.29%
DP9.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.46%
Min EPS beat(2)-7.03%
Max EPS beat(2)15.95%
EPS beat(4)3
Avg EPS beat(4)31.11%
Min EPS beat(4)-7.03%
Max EPS beat(4)63.37%
EPS beat(8)7
Avg EPS beat(8)28.3%
EPS beat(12)7
Avg EPS beat(12)-19.47%
EPS beat(16)7
Avg EPS beat(16)-209.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.23%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)1.91%
Revenue beat(8)6
Avg Revenue beat(8)2.04%
Revenue beat(12)9
Avg Revenue beat(12)1.55%
Revenue beat(16)10
Avg Revenue beat(16)0.18%
PT rev (1m)12.88%
PT rev (3m)17.74%
EPS NQ rev (1m)5.74%
EPS NQ rev (3m)10.16%
EPS NY rev (1m)4.26%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.69 | ||
| Fwd PE | 13.84 | ||
| P/S | 1.58 | ||
| P/FCF | 11.39 | ||
| P/OCF | 9.15 | ||
| P/B | 4.62 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)2.19
EY5.99%
EPS(NY)2.64
Fwd EY7.22%
FCF(TTM)3.21
FCFY8.78%
OCF(TTM)4
OCFY10.93%
SpS23.07
BVpS7.91
TBVpS6.71
PEG (NY)0.81
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 28.01% | ||
| ROCE | 23.55% | ||
| ROIC | 13.67% | ||
| ROICexc | 16.88% | ||
| ROICexgc | 19.23% | ||
| OM | 12.39% | ||
| PM (TTM) | 9.6% | ||
| GM | 20.45% | ||
| FCFM | 13.91% |
ROA(3y)2.66%
ROA(5y)-1.72%
ROE(3y)8.58%
ROE(5y)-10.61%
ROIC(3y)6.55%
ROIC(5y)N/A
ROICexc(3y)8.36%
ROICexc(5y)N/A
ROICexgc(3y)9.72%
ROICexgc(5y)N/A
ROCE(3y)11.29%
ROCE(5y)N/A
ROICexcg growth 3Y120.68%
ROICexcg growth 5Y29.85%
ROICexc growth 3Y124.98%
ROICexc growth 5Y78.94%
OM growth 3Y90%
OM growth 5Y46.09%
PM growth 3Y257.56%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
F-Score9
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 77.46% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.09% | ||
| Profit Quality | 144.81% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.13 |
F-Score9
WACC8.84%
ROIC/WACC1.55
Cap/Depr(3y)57.73%
Cap/Depr(5y)57.63%
Cap/Sales(3y)2.78%
Cap/Sales(5y)3.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)119%
EPS 3Y357.37%
EPS 5Y24.99%
EPS Q2Q%58.14%
EPS Next Y20.62%
EPS Next 2Y20.13%
EPS Next 3Y18.4%
EPS Next 5Y12.01%
Revenue 1Y (TTM)11.55%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%8.99%
Revenue Next Year9.65%
Revenue Next 2Y8.59%
Revenue Next 3Y7.48%
Revenue Next 5Y4.53%
EBIT growth 1Y49.09%
EBIT growth 3Y113.48%
EBIT growth 5Y54.12%
EBIT Next Year82.77%
EBIT Next 3Y28.99%
EBIT Next 5Y15.6%
FCF growth 1Y283.62%
FCF growth 3Y4.84%
FCF growth 5Y11.51%
OCF growth 1Y199.58%
OCF growth 3Y7.14%
OCF growth 5Y2.52%