TECHNIPFMC PLC (FTI)
GB00BDSFG982 - Common Stock
FTI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 66 industry peers in the Energy Equipment & Services industry. The financial health of FTI is average, but there are quite some concerns on its profitability. FTI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FTI had positive earnings in the past year.
In the past year FTI had a positive cash flow from operations.
In the past 5 years FTI reported 4 times negative net income.
Of the past 5 years FTI 4 years had a positive operating cash flow.
1.2 Ratios
FTI has negative profitability rations, so we won't be analyzing them here.
The Return On Invested Capital of FTI (5.05%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTI is significantly below the industry average of 8.43%.
The last Return On Invested Capital (5.05%) for FTI is above the 3 year average (3.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 5.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.35%
ROIC(5y)4.22%
1.3 Margins
With a Operating Margin value of 4.67%, FTI is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
FTI's Operating Margin has declined in the last couple of years.
The Gross Margin of FTI (14.38%) is worse than 81.25% of its industry peers.
In the last couple of years the Gross Margin of FTI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.67% | ||
| PM | N/A | ||
| GM | 14.38% |
OM growth 3Y-26.25%
OM growth 5Y-17.61%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.88%
GM growth 5Y-4.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTI is destroying value.
Compared to 1 year ago, FTI has less shares outstanding
FTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FTI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that FTI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.05, FTI is not doing good in the industry: 70.31% of the companies in the same industry are doing better.
The Debt to FCF ratio of FTI is 4.34, which is a neutral value as it means it would take FTI, 4.34 years of fcf income to pay off all of its debts.
FTI has a Debt to FCF ratio of 4.34. This is in the better half of the industry: FTI outperforms 65.63% of its industry peers.
FTI has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
FTI has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.73
WACC9.4%
2.3 Liquidity
FTI has a Current Ratio of 1.18. This is a normal value and indicates that FTI is financially healthy and should not expect problems in meeting its short term obligations.
FTI's Current ratio of 1.18 is on the low side compared to the rest of the industry. FTI is outperformed by 87.50% of its industry peers.
A Quick Ratio of 0.90 indicates that FTI may have some problems paying its short term obligations.
The Quick ratio of FTI (0.90) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
FTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 142.11%, which is quite impressive.
FTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.63%.
Measured over the past years, FTI shows a very negative growth in Revenue. The Revenue has been decreasing by -14.95% on average per year.
EPS 1Y142.11%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q400%
Revenue growth 1Y11.63%
Revenue growth 3Y-20.65%
Revenue growth 5Y-14.95%
Revenue growth Q2Q14.85%
3.2 Future
Based on estimates for the next years, FTI will show a very strong growth in Earnings Per Share. The EPS will grow by 131.06% on average per year.
The Revenue is expected to grow by 8.59% on average over the next years. This is quite good.
EPS Next Y1547.46%
EPS Next 2Y521.68%
EPS Next 3Y292.44%
EPS Next 5Y131.06%
Revenue Next Year13.64%
Revenue Next 2Y14.43%
Revenue Next 3Y13.71%
Revenue Next 5Y8.59%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 254.25 indicates a quite expensive valuation of FTI.
FTI's Price/Earnings ratio is a bit more expensive when compared to the industry. FTI is more expensive than 67.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of FTI to the average of the S&P500 Index (25.76), we can say FTI is valued expensively.
A Price/Forward Earnings ratio of 18.50 indicates a rather expensive valuation of FTI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTI indicates a slightly more expensive valuation: FTI is more expensive than 73.44% of the companies listed in the same industry.
FTI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 18.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 254.25 | ||
| Fwd PE | 18.5 |
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 76.56% of the companies listed in the same industry.
FTI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTI is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.92 | ||
| EV/EBITDA | 13.93 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FTI's earnings are expected to grow with 292.44% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y521.68%
EPS Next 3Y292.44%
5. Dividend
5.1 Amount
FTI has a yearly dividend return of 0.98%, which is pretty low.
FTI's Dividend Yield is a higher than the industry average which is at 2.34.
With a Dividend Yield of 0.98, FTI pays less dividend than the S&P500 average, which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
FTI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y521.68%
EPS Next 3Y292.44%
TECHNIPFMC PLC
NYSE:FTI (9/29/2023, 6:36:34 PM)
After market: 20.34 0 (0%)20.34
-0.6 (-2.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)07-27 2023-07-27/bmo
Earnings (Next)10-24 2023-10-24/bmo
Inst Owners99.27%
Inst Owner Change4.38%
Ins Owners1.26%
Ins Owner Change-0.11%
Market Cap8.91B
Analysts81.48
Price Target22.51 (10.67%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-21 2023-08-21 (0.05)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-67.8%
Min EPS beat(2)-100%
Max EPS beat(2)-35.6%
EPS beat(4)0
Avg EPS beat(4)-115.03%
Min EPS beat(4)-255.33%
Max EPS beat(4)-35.6%
Revenue beat(2)2
Avg Revenue beat(2)101448%
Min Revenue beat(2)101194%
Max Revenue beat(2)101702%
Revenue beat(4)4
Avg Revenue beat(4)100464%
Min Revenue beat(4)98142.6%
Max Revenue beat(4)101702%
PT rev (1m)3.98%
PT rev (3m)18.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-11.82%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 254.25 | ||
| Fwd PE | 18.5 | ||
| P/S | 1.25 | ||
| P/FCF | 25.92 | ||
| P/OCF | 16.25 | ||
| P/B | 2.87 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 13.93 |
EPS(TTM)0.08
EY0.39%
EPS(NY)1.1
Fwd EY5.41%
FCF(TTM)0.78
FCFY3.86%
OCF(TTM)1.25
OCFY6.15%
SpS16.25
BVpS7.08
TBVpS5.54
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | 6.39% | ||
| ROIC | 5.05% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 6.84% | ||
| OM | 4.67% | ||
| PM | N/A | ||
| GM | 14.38% | ||
| FCFM | 4.83% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.35%
ROIC(5y)4.22%
ROICexc(3y)5.84%
ROICexc(5y)7.05%
ROICexgc(3y)21.27%
ROICexgc(5y)35.91%
ROCE(3y)4.24%
ROCE(5y)5.34%
ROICexcg growth 3Y-56.61%
ROICexcg growth 5Y-41.28%
ROICexc growth 3Y-27.07%
ROICexc growth 5Y-13.94%
OM growth 3Y-26.25%
OM growth 5Y-17.61%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.88%
GM growth 5Y-4.47%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 54.23% | ||
| Cap/Sales | 2.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.05 |
F-Score5
WACC9.4%
ROIC/WACC0.73
Cap/Depr(3y)52.28%
Cap/Depr(5y)62.58%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y142.11%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q400%
EPS Next Y1547.46%
EPS Next 2Y521.68%
EPS Next 3Y292.44%
EPS Next 5Y131.06%
Revenue growth 1Y11.63%
Revenue growth 3Y-20.65%
Revenue growth 5Y-14.95%
Revenue growth Q2Q14.85%
Revenue Next Year13.64%
Revenue Next 2Y14.43%
Revenue Next 3Y13.71%
Revenue Next 5Y8.59%
EBIT growth 1Y146%
EBIT growth 3Y-41.47%
EBIT growth 5Y-29.93%
EBIT Next Year199.56%
EBIT Next 3Y75.14%
EBIT Next 5Y40.7%
FCF growth 1Y-49.94%
FCF growth 3Y-21.01%
FCF growth 5YN/A
OCF growth 1Y-38.02%
OCF growth 3Y-25.41%
OCF growth 5Y10.82%