Finning International
Market Cap
CA$5.4b
Last Updated
2021/05/12 23:00 UTC
Data Sources
Company Financials +
Executive Summary
Finning International Inc. sells, services, and rents heavy equipment, and power and energy systems in Canada, Chile, the United Kingdom, Argentina, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Finning International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FTT is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FTT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.5%
FTT
-1.1%
CA Trade Distributors
-0.8%
CA Market
1 Year Return
95.6%
FTT
88.9%
CA Trade Distributors
38.7%
CA Market
Return vs Industry: FTT exceeded the Canadian Trade Distributors industry which returned 85.2% over the past year.
Return vs Market: FTT exceeded the Canadian Market which returned 36.3% over the past year.
Shareholder returns
| FTT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -1.1% | -0.8% |
| 30 Day | 1.8% | 5.2% | 0.2% |
| 90 Day | 5.9% | 12.4% | 5.5% |
| 1 Year | 103.0%95.6% | 94.2%88.9% | 43.3%38.7% |
| 3 Year | 10.8%0.06% | 47.7%33.9% | 27.3%15.2% |
| 5 Year | 79.9%54.8% | 125.9%94.1% | 57.2%33.6% |
Long-Term Price Volatility Vs. Market
How volatile is Finning International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Finning International (TSE:FTT) Shareholders Booked A 81% Gain In The Last Year1 month ago | Simply Wall St
Is Finning International (TSE:FTT) Using Too Much Debt?1 month ago | Simply Wall St
What Does Finning International Inc.'s (TSE:FTT) Share Price Indicate?Valuation
Is Finning International undervalued compared to its fair value and its price relative to the market?
21.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FTT (CA$33.26) is trading above our estimate of fair value (CA$17.62)
Significantly Below Fair Value: FTT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FTT is poor value based on its PE Ratio (21.7x) compared to the Canadian Trade Distributors industry average (15.9x).
PE vs Market: FTT is poor value based on its PE Ratio (21.7x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FTT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FTT is overvalued based on its PB Ratio (2.4x) compared to the CA Trade Distributors industry average (2.1x).
Future Growth
How is Finning International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
5.6%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if FTT's forecast earnings growth is above the savings rate (1.5%).
Earnings vs Market: Insufficient data to determine if FTT's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FTT's revenue (5.6% per year) is forecast to grow slower than the Canadian market (6.5% per year).
High Growth Revenue: FTT's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FTT's Return on Equity is forecast to be low in 3 years time (14.5%).
Past Performance
How has Finning International performed over the past 5 years?
37.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTT has a large one-off gain of CA$67.0M impacting its March 31 2021 financial results.
Growing Profit Margin: FTT's current net profit margins (4%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: FTT has become profitable over the past 5 years, growing earnings by 37.5% per year.
Accelerating Growth: FTT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FTT had negative earnings growth (-7.5%) over the past year, making it difficult to compare to the Trade Distributors industry average (38.3%).
Return on Equity
High ROE: FTT's Return on Equity (11.1%) is considered low.
Financial Health
How is Finning International's financial position?
Financial Position Analysis
Short Term Liabilities: FTT's short term assets (CA$3.3B) exceed its short term liabilities (CA$1.8B).
Long Term Liabilities: FTT's short term assets (CA$3.3B) exceed its long term liabilities (CA$1.5B).
Debt to Equity History and Analysis
Debt Level: FTT's debt to equity ratio (58.8%) is considered high.
Reducing Debt: FTT's debt to equity ratio has reduced from 79.1% to 58.8% over the past 5 years.
Debt Coverage: FTT's debt is well covered by operating cash flow (74.8%).
Interest Coverage: FTT's interest payments on its debt are well covered by EBIT (4.3x coverage).
Balance Sheet
Dividend
What is Finning International current dividend yield, its reliability and sustainability?
2.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FTT's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Canadian market (1.49%).
High Dividend: FTT's dividend (2.47%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).
Stability and Growth of Payments
Stable Dividend: FTT's dividends per share have been stable in the past 10 years.
Growing Dividend: FTT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53.6%), FTT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
L. Thomson (50 yo)
7.92yrs
Tenure
CA$13,890,044
Compensation
Mr. L. Scott Thomson has been the Chief Executive Officer and President of Finning International Inc., since June 17, 2013. Prior to joining Finning in 2013, Mr. Thomson served as the Chief Financial Offic...
CEO Compensation Analysis
Compensation vs Market: L.'s total compensation ($USD11.48M) is above average for companies of similar size in the Canadian market ($USD3.14M).
Compensation vs Earnings: L.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: FTT's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: FTT's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FTT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Finning International Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Finning International Inc.
- Ticker: FTT
- Exchange: TSX
- Founded: 1933
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$5.398b
- Shares outstanding: 162.30m
- Website: https://www.finning.com
Number of Employees
Location
- Finning International Inc.
- 565 Great Northern Way
- Suite 300
- Vancouver
- British Columbia
- V5T 0H8
- Canada
Listings
Biography
Finning International Inc. sells, services, and rents heavy equipment, and power and energy systems in Canada, Chile, the United Kingdom, Argentina, and internationally. It offers telehandlers, compact and...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/12 23:00 |
| End of Day Share Price | 2021/05/12 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.