TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
NYSE:FTI - New York Stock Exchange, Inc. - GB00BDSFG982 - Common Stock - Currency: USD
FTI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FTI was profitable.
In the past year FTI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FTI reported negative net income in multiple years.
Each year in the past 5 years FTI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.31%, FTI is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.99%, FTI belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
FTI's Return On Invested Capital of 13.08% is amongst the best of the industry. FTI outperforms 85.71% of its industry peers.
FTI had an Average Return On Invested Capital over the past 3 years of 6.55%. This is in line with the industry average of 8.44%.
The last Return On Invested Capital (13.08%) for FTI is above the 3 year average (6.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 26.99% | ||
| ROIC | 13.08% |
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 (8.94%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of FTI has grown nicely.
Looking at the Operating Margin, with a value of 11.64%, FTI is in line with its industry, outperforming 58.73% of the companies in the same industry.
In the last couple of years the Operating Margin of FTI has grown nicely.
The Gross Margin of FTI (19.91%) is worse than 69.84% of its industry peers.
FTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.64% | ||
| PM (TTM) | 8.94% | ||
| GM | 19.91% |
OM growth 3Y89.96%
OM growth 5Y46.07%
PM growth 3Y257.57%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
2. Health
2.1 Basic Checks
FTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FTI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FTI has less shares outstanding
FTI has a better debt/assets ratio than last year.
2.2 Solvency
FTI has an Altman-Z score of 2.02. 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.
FTI has a Altman-Z score (2.02) which is in line with its industry peers.
The Debt to FCF ratio of FTI is 0.85, which is an excellent value as it means it would take FTI, only 0.85 years of fcf income to pay off all of its debts.
FTI's Debt to FCF ratio of 0.85 is amongst the best of the industry. FTI outperforms 84.13% of its industry peers.
FTI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
FTI has a better Debt to Equity ratio (0.17) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.48
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FTI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.07, FTI is doing worse than 92.06% of the companies in the same industry.
FTI has a Quick Ratio of 1.07. This is a bad value and indicates that FTI is not financially healthy enough and could expect problems in meeting its short term obligations.
FTI has a worse Quick ratio (0.82) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
FTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.55%, which is quite impressive.
Measured over the past years, FTI shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.99% on average per year.
The Revenue has grown by 13.82% 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)189.55%
EPS 3Y357.09%
EPS 5Y24.99%
EPS Q2Q%50%
Revenue 1Y (TTM)13.82%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%9.38%
3.2 Future
Based on estimates for the next years, FTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
FTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y15.18%
EPS Next 2Y18.32%
EPS Next 3Y17.25%
EPS Next 5Y10.14%
Revenue Next Year9.35%
Revenue Next 2Y8.23%
Revenue Next 3Y6.74%
Revenue Next 5Y4.46%
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
The Price/Earnings ratio is 18.38, which indicates a rather expensive current valuation of FTI.
Compared to the rest of the industry, the Price/Earnings ratio of FTI is on the same level as its industry peers.
FTI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 13.92, which indicates a correct valuation of FTI.
FTI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FTI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTI is valued expensively inside the industry as 84.13% of the companies are valued cheaper.
FTI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
FTI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FTI has a very decent profitability rating, which may justify a higher PE ratio.
FTI's earnings are expected to grow with 17.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)0.74
EPS Next 2Y18.32%
EPS Next 3Y17.25%
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 3.54, FTI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, FTI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of FTI decreases each year by -17.27%.
FTI has paid a dividend for at least 10 years, which is a reliable track record.
FTI has decreased its dividend recently.
Dividend Growth(5Y)-17.27%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
10.25% of the earnings are spent on dividend by FTI. This is a low number and sustainable payout ratio.
DP10.25%
EPS Next 2Y18.32%
EPS Next 3Y17.25%
35.66
+0.3 (+0.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.04%
Inst Owner Change0%
Ins Owners1.09%
Ins Owner Change9.33%
Market Cap14.95B
Analysts78.57
Price Target35.89 (0.64%)
Short Float %2.51%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.2
Dividend Growth(5Y)-17.27%
DP10.25%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)22.55%
Min EPS beat(2)-7.03%
Max EPS beat(2)52.13%
EPS beat(4)3
Avg EPS beat(4)36.92%
Min EPS beat(4)-7.03%
Max EPS beat(4)63.37%
EPS beat(8)6
Avg EPS beat(8)21.86%
EPS beat(12)6
Avg EPS beat(12)-25.39%
EPS beat(16)6
Avg EPS beat(16)-231.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.91%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.99%
Revenue beat(8)6
Avg Revenue beat(8)2.05%
Revenue beat(12)9
Avg Revenue beat(12)1.45%
Revenue beat(16)10
Avg Revenue beat(16)0.29%
PT rev (1m)0.91%
PT rev (3m)2.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.14%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 13.92 | ||
| P/S | 1.61 | ||
| P/FCF | 12.08 | ||
| P/OCF | 9.77 | ||
| P/B | 4.87 | ||
| P/tB | 5.79 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)1.94
EY5.44%
EPS(NY)2.56
Fwd EY7.18%
FCF(TTM)2.95
FCFY8.28%
OCF(TTM)3.65
OCFY10.23%
SpS22.12
BVpS7.33
TBVpS6.16
PEG (NY)1.21
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 26.99% | ||
| ROCE | 22.54% | ||
| ROIC | 13.08% | ||
| ROICexc | 17.43% | ||
| ROICexgc | 20.17% | ||
| OM | 11.64% | ||
| PM (TTM) | 8.94% | ||
| GM | 19.91% | ||
| FCFM | 13.35% |
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 3Y120.64%
ROICexcg growth 5Y29.84%
ROICexc growth 3Y124.94%
ROICexc growth 5Y78.92%
OM growth 3Y89.96%
OM growth 5Y46.07%
PM growth 3Y257.57%
PM growth 5YN/A
GM growth 3Y13.81%
GM growth 5Y4.5%
F-Score8
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 73.92% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.77% | ||
| Profit Quality | 149.34% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.02 |
F-Score8
WACC8.84%
ROIC/WACC1.48
Cap/Depr(3y)57.71%
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)189.55%
EPS 3Y357.09%
EPS 5Y24.99%
EPS Q2Q%50%
EPS Next Y15.18%
EPS Next 2Y18.32%
EPS Next 3Y17.25%
EPS Next 5Y10.14%
Revenue 1Y (TTM)13.82%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%9.38%
Revenue Next Year9.35%
Revenue Next 2Y8.23%
Revenue Next 3Y6.74%
Revenue Next 5Y4.46%
EBIT growth 1Y68.24%
EBIT growth 3Y113.43%
EBIT growth 5Y54.1%
EBIT Next Year76.14%
EBIT Next 3Y27.62%
EBIT Next 5Y14.08%
FCF growth 1Y1052.7%
FCF growth 3Y4.82%
FCF growth 5Y11.49%
OCF growth 1Y418.12%
OCF growth 3Y7.14%
OCF growth 5Y2.52%