TECHNIPFMC PLC (FTI) Stock Fundamental Analysis
NYSE:FTI - New York Stock Exchange, Inc. - GB00BDSFG982 - Common Stock - Currency: USD
Taking everything into account, FTI scores 6 out of 10 in our fundamental rating. FTI was compared to 62 industry peers in the Energy Equipment & Services industry. FTI has an excellent profitability rating, 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.
In the past year FTI had a positive cash flow from operations.
In multiple years FTI reported negative net income over the last 5 years.
In the past 5 years FTI always reported a positive cash flow from operatings.
1.2 Ratios
FTI has a Return On Assets of 8.30%. This is in the better half of the industry: FTI outperforms 74.19% of its industry peers.
FTI's Return On Equity of 26.95% is amongst the best of the industry. FTI outperforms 91.94% of its industry peers.
FTI has a Return On Invested Capital of 13.09%. This is amongst the best in the industry. FTI outperforms 85.48% 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 8.45%.
The 3 year average ROIC (6.55%) for FTI is below the current ROIC(13.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 26.95% | ||
| ROIC | 13.09% |
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's Profit Margin of 8.93% is fine compared to the rest of the industry. FTI outperforms 66.13% of its industry peers.
In the last couple of years the Profit Margin of FTI has grown nicely.
The Operating Margin of FTI (11.65%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FTI has grown nicely.
FTI has a Gross Margin of 19.91%. This is in the lower half of the industry: FTI underperforms 69.35% of its industry peers.
In the last couple of years the Gross Margin of FTI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 8.93% | ||
| GM | 19.91% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FTI is creating some value.
The number of shares outstanding for FTI has been reduced compared to 1 year ago.
The number of shares outstanding for FTI has been reduced compared to 5 years ago.
FTI has a better debt/assets ratio than last year.
2.2 Solvency
FTI has an Altman-Z score of 1.87. 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's Altman-Z score of 1.87 is in line compared to the rest of the industry. FTI outperforms 54.84% of its industry peers.
FTI has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
The Debt to FCF ratio of FTI (0.85) is better than 87.10% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that FTI is not too dependend on debt financing.
FTI has a better Debt to Equity ratio (0.17) than 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.48
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FTI should not have too much problems paying its short term obligations.
FTI has a worse Current ratio (1.07) than 93.55% of its industry peers.
A Quick Ratio of 0.82 indicates that FTI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, FTI is doing worse than 93.55% of the companies in the same industry.
| 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.
FTI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.99% yearly.
FTI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.82%.
The Revenue has been growing slightly by 5.50% on average over the past years.
EPS 1Y (TTM)189.55%
EPS 3Y357.37%
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
FTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
Based on estimates for the next years, FTI will show a small growth in Revenue. The Revenue will grow by 4.86% on average per year.
EPS Next Y13.56%
EPS Next 2Y17.35%
EPS Next 3Y15.6%
EPS Next 5Y8.9%
Revenue Next Year9.2%
Revenue Next 2Y8.26%
Revenue Next 3Y6.93%
Revenue Next 5Y4.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 16.12 indicates a correct valuation of FTI.
The rest of the industry has a similar Price/Earnings ratio as FTI.
FTI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
FTI is valuated correctly with a Price/Forward Earnings ratio of 12.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, FTI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
FTI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FTI is more expensive than 77.42% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FTI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
The 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 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)0.65
EPS Next 2Y17.35%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
FTI has a yearly dividend return of 0.67%, which is pretty low.
FTI's Dividend Yield is comparable with the industry average which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.41, FTI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of FTI decreases each year by -17.29%.
FTI has been paying a dividend for at least 10 years, so it has 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 10.29% of its income as dividend. This is a sustainable payout ratio.
DP10.29%
EPS Next 2Y17.35%
EPS Next 3Y15.6%
31.28
+0.53 (+1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.34%
Inst Owner Change-2.17%
Ins Owners0.99%
Ins Owner Change9.14%
Market Cap13.11B
Analysts80
Price Target35.56 (13.68%)
Short Float %2.68%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.2
Dividend Growth(5Y)-17.29%
DP10.29%
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)1.73%
PT rev (3m)2.97%
EPS NQ rev (1m)5.2%
EPS NQ rev (3m)7.78%
EPS NY rev (1m)-1.94%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.41 | ||
| P/FCF | 10.59 | ||
| P/OCF | 8.57 | ||
| P/B | 4.27 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)1.94
EY6.2%
EPS(NY)2.52
Fwd EY8.06%
FCF(TTM)2.95
FCFY9.44%
OCF(TTM)3.65
OCFY11.66%
SpS22.12
BVpS7.33
TBVpS6.16
PEG (NY)1.19
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 26.95% | ||
| ROCE | 22.56% | ||
| ROIC | 13.09% | ||
| ROICexc | 17.44% | ||
| ROICexgc | 20.18% | ||
| OM | 11.65% | ||
| PM (TTM) | 8.93% | ||
| 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 3Y120.68%
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-Score8
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 73.66% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.63% | ||
| Profit Quality | 149.55% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.87 |
F-Score8
WACC8.83%
ROIC/WACC1.48
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)189.55%
EPS 3Y357.37%
EPS 5Y24.99%
EPS Q2Q%50%
EPS Next Y13.56%
EPS Next 2Y17.35%
EPS Next 3Y15.6%
EPS Next 5Y8.9%
Revenue 1Y (TTM)13.82%
Revenue growth 3Y12.36%
Revenue growth 5Y5.5%
Sales Q2Q%9.38%
Revenue Next Year9.2%
Revenue Next 2Y8.26%
Revenue Next 3Y6.93%
Revenue Next 5Y4.86%
EBIT growth 1Y68.36%
EBIT growth 3Y113.48%
EBIT growth 5Y54.12%
EBIT Next Year75.64%
EBIT Next 3Y27.69%
EBIT Next 5Y14.58%
FCF growth 1Y1052.7%
FCF growth 3Y4.84%
FCF growth 5Y11.51%
OCF growth 1Y417.91%
OCF growth 3Y7.14%
OCF growth 5Y2.52%