Finning International
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Finning International Inc. engages in selling, servicing, and renting heavy equipment, engines, and related products in Canada, South America, the United Kingdom, and Ireland. The last earnings update was 56 days ago. More info.
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FTT Share Price and Events
7 Day Returns
1 Year Returns
FTT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Finning International (FTT) | 1% | 3.3% | -5.3% | -23.4% | 9.9% | -16.2% |
| CA Trade Distributors | -0.3% | 0.5% | 3.3% | -8.4% | 28% | 14.5% |
| CA Market | 0.6% | 1.9% | 8.1% | 3.6% | 14.8% | 6.7% |
1 Year Return vs Industry and Market
- FTT underperformed the Trade Distributors industry which returned -8.4% over the past year.
- FTT underperformed the Market in Canada which returned 3.6% over the past year.
FTT Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Finning International
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Finning International.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 8 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9% |
| Perpetual Growth Rate | 10-Year CA Government Bond Rate | 1.9% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CA Govt Bond Rate | 1.9% |
| Equity Risk Premium | S&P Global | 6% |
| Trade Distributors Unlevered Beta | Simply Wall St/ S&P Global | 1 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1 (1 + (1- 26.5%) (38.77%)) |
1.191 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.19 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.191 * 5.96%) |
9.05% |
Discounted Cash Flow Calculation for TSX:FTT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Finning International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (CAD, Millions) | Source |
Present Value Discounted (@ 9.05%) |
|
|---|---|---|---|
| 2019 | 315.68 | Analyst x4 | 289.48 |
| 2020 | 290.78 | Analyst x4 | 244.53 |
| 2021 | 204.00 | Analyst x1 | 157.32 |
| 2022 | 155.07 | Est @ -23.99% | 109.66 |
| 2023 | 129.94 | Est @ -16.21% | 84.27 |
| 2024 | 115.96 | Est @ -10.76% | 68.96 |
| 2025 | 107.90 | Est @ -6.95% | 58.85 |
| 2026 | 103.28 | Est @ -4.28% | 51.66 |
| 2027 | 100.79 | Est @ -2.41% | 46.23 |
| 2028 | 99.68 | Est @ -1.1% | 41.92 |
| Present value of next 10 years cash flows | CA$1,152.88 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= CA$99.68 × (1 + 1.95%) ÷ (9.05% – 1.95%) |
CA$1,431.25 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= CA$1,431.25 ÷ (1 + 9.05%)10 |
CA$601.97 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= CA$1,152.88 + CA$601.97 |
CA$1,754.85 |
| Equity Value per Share (CAD) |
= Total value / Shares Outstanding
= CA$1,754.85 / 163.46 |
CA$10.74 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$10.74 |
| Current discount | Discount to share price of
CA$24.27
= -1 x (CA$24.27 - CA$10.74) / CA$10.74 |
-126.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Finning International is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Finning International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Finning International's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in CAD | CA$1.38 |
| TSX:FTT Share Price ** | TSX (2019-04-18) in CAD | CA$24.27 |
| Canada Trade Distributors Industry PE Ratio | Median Figure of 13 Publicly-Listed Trade Distributors Companies | 10.67x |
| Canada Market PE Ratio | Median Figure of 554 Publicly-Listed Companies | 15.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Finning International.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:FTT Share Price ÷ EPS (both in CAD) = 24.27 ÷ 1.38 |
17.57x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Finning International is overvalued based on earnings compared to the CA Trade Distributors industry average.
- Finning International is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does
Finning International's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.57x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts |
21.7%per year |
| Canada Trade Distributors Industry PEG Ratio | Median Figure of 6 Publicly-Listed Trade Distributors Companies | 0.95x |
| Canada Market PEG Ratio | Median Figure of 254 Publicly-Listed Companies | 1.22x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.57x ÷ 21.7% |
0.81x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Finning International is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Finning International's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in CAD | CA$12.83 |
| TSX:FTT Share Price * | TSX (2019-04-18) in CAD | CA$24.27 |
| Canada Trade Distributors Industry PB Ratio | Median Figure of 17 Publicly-Listed Trade Distributors Companies | 1.03x |
| Canada Market PB Ratio | Median Figure of 2,370 Publicly-Listed Companies | 1.51x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:FTT Share Price ÷ Book Value per Share (both in CAD) = 24.27 ÷ 12.83 |
1.89x |
* Primary Listing of Finning International.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Finning International is overvalued based on assets compared to the CA Trade Distributors industry average.
Value checks
We assess Finning International's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check) Finning International has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
FTT Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Finning International's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
- Finning International's earnings growth is expected to exceed the Canada market average.
- Finning International's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:FTT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts | 21.7% |
| TSX:FTT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts | 3.4% |
| Canada Trade Distributors Industry Earnings Growth Rate | Market Cap Weighted Average | 11.8% |
| Canada Trade Distributors Industry Revenue Growth Rate | Market Cap Weighted Average | 4% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 18.4% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 7,525 | 384 | 1 | |
| 2020-12-31 | 7,541 | 541 | 361 | 8 |
| 2019-12-31 | 7,218 | 519 | 296 | 8 |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 6,996 | 260 | 232 |
| 2018-09-30 | 6,896 | 168 | 246 |
| 2018-06-30 | 6,679 | 229 | 271 |
| 2018-03-31 | 6,534 | 99 | 245 |
| 2017-12-31 | 6,256 | 283 | 216 |
| 2017-09-30 | 6,014 | 16 | 161 |
| 2017-06-30 | 5,809 | 138 | 147 |
| 2017-03-31 | 5,535 | 325 | 97 |
| 2016-12-31 | 5,628 | 440 | 65 |
| 2016-09-30 | 5,674 | 679 | -253 |
| 2016-06-30 | 5,858 | 661 | -256 |
| 2016-03-31 | 6,228 | 660 | -199 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
All data from Finning International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | 2.10 | 2.19 | 2.00 | 2.00 |
| 2019-12-31 | 1.78 | 1.80 | 1.75 | 2.00 |
| Date (Data in CAD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.38 |
| 2018-09-30 | 1.46 |
| 2018-06-30 | 1.61 |
| 2018-03-31 | 1.46 |
| 2017-12-31 | 1.28 |
| 2017-09-30 | 0.96 |
| 2017-06-30 | 0.87 |
| 2017-03-31 | 0.58 |
| 2016-12-31 | 0.39 |
| 2016-09-30 | -1.50 |
| 2016-06-30 | -1.51 |
| 2016-03-31 | -1.17 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Finning International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Finning International's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Finning International has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
FTT Past Performance
How has Finning International performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Finning International's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Finning International's 1-year earnings growth exceeds its 5-year average (7.4% vs -10.1%)
- Finning International's earnings growth has not exceeded the CA Trade Distributors industry average in the past year (7.4% vs 30.7%).
Earnings and Revenue History
All data from Finning International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 6,996.00 | 232.00 | 1,332.00 | |
| 2018-09-30 | 6,896.00 | 246.00 | 1,332.00 | |
| 2018-06-30 | 6,679.00 | 271.00 | 1,309.00 | |
| 2018-03-31 | 6,534.00 | 245.00 | 1,295.00 | |
| 2017-12-31 | 6,256.00 | 216.00 | 1,271.00 | |
| 2017-09-30 | 6,014.00 | 161.00 | 1,255.00 | |
| 2017-06-30 | 5,809.00 | 147.00 | 1,231.00 | |
| 2017-03-31 | 5,535.00 | 97.00 | 1,203.00 | |
| 2016-12-31 | 5,628.00 | 65.00 | 1,216.00 | |
| 2016-09-30 | 5,674.00 | -253.00 | 1,243.00 | |
| 2016-06-30 | 5,858.00 | -256.00 | 1,286.00 | |
| 2016-03-31 | 6,228.00 | -199.00 | 1,310.00 | |
| 2015-12-31 | 6,275.00 | -161.00 | 1,312.00 | |
| 2015-09-30 | 6,541.40 | 254.88 | 1,368.57 | |
| 2015-06-30 | 6,694.85 | 278.67 | 1,421.03 | |
| 2015-03-31 | 6,782.78 | 303.09 | 1,478.60 | |
| 2014-12-31 | 6,918.00 | 318.00 | 1,544.00 | |
| 2014-09-30 | 6,910.39 | 304.05 | 1,555.32 | |
| 2014-06-30 | 7,020.07 | 333.49 | 1,556.00 | |
| 2014-03-31 | 6,872.29 | 329.77 | 1,564.53 | |
| 2013-12-31 | 6,755.99 | 335.26 | 1,560.32 | |
| 2013-09-30 | 6,705.87 | 344.94 | 1,542.11 | |
| 2013-06-30 | 6,519.43 | 339.93 | 1,532.04 | |
| 2013-03-31 | 6,663.72 | 335.85 | 1,531.26 | |
| 2012-12-31 | 6,575.62 | 326.77 | 1,496.79 | |
| 2012-09-30 | 6,640.58 | 294.69 | 1,478.06 | |
| 2012-06-30 | 6,376.01 | 248.93 | 1,418.23 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Finning International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Finning International used its assets less efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
- Finning International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Finning International's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Finning International has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
FTT Health
How is Finning International's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Finning International's finances.
The net worth of a company is the difference between its assets and liabilities.
- Finning International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Finning International's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Finning International Company Filings, last reported 3 months ago.
| Date (Data in CAD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 2,109.00 | 1,538.00 | 454.00 |
| 2018-09-30 | 2,114.00 | 1,538.00 | 221.00 |
| 2018-06-30 | 2,119.00 | 1,543.00 | 300.00 |
| 2018-03-31 | 2,060.00 | 1,491.00 | 325.00 |
| 2017-12-31 | 1,974.00 | 1,343.00 | 458.00 |
| 2017-09-30 | 1,926.00 | 1,673.00 | 516.00 |
| 2017-06-30 | 1,937.00 | 1,568.00 | 411.00 |
| 2017-03-31 | 1,918.00 | 1,497.00 | 489.00 |
| 2016-12-31 | 1,901.00 | 1,523.00 | 593.00 |
| 2016-09-30 | 1,895.00 | 1,482.00 | 460.00 |
| 2016-06-30 | 1,890.00 | 1,535.00 | 384.00 |
| 2016-03-31 | 1,942.00 | 1,568.00 | 425.00 |
| 2015-12-31 | 2,050.00 | 1,696.00 | 498.00 |
| 2015-09-30 | 2,329.53 | 1,724.71 | 252.68 |
| 2015-06-30 | 2,283.91 | 1,496.44 | 244.47 |
| 2015-03-31 | 2,265.61 | 1,487.26 | 211.43 |
| 2014-12-31 | 2,131.00 | 1,442.00 | 450.00 |
| 2014-09-30 | 2,024.98 | 1,529.72 | 214.52 |
| 2014-06-30 | 1,969.70 | 1,554.60 | 185.05 |
| 2014-03-31 | 1,951.04 | 1,678.71 | 210.44 |
| 2013-12-31 | 1,857.76 | 1,486.72 | 176.27 |
| 2013-09-30 | 1,746.00 | 1,695.41 | 83.14 |
| 2013-06-30 | 1,701.02 | 1,876.05 | 115.04 |
| 2013-03-31 | 1,623.18 | 1,823.33 | 123.27 |
| 2012-12-31 | 1,566.55 | 1,711.16 | 114.92 |
| 2012-09-30 | 1,464.55 | 1,740.77 | 135.82 |
| 2012-06-30 | 1,433.12 | 1,709.55 | 111.32 |
- Finning International's level of debt (72.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (80.1% vs 72.9% today).
- Debt is not well covered by operating cash flow (16.9%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
Financial health checks
We assess Finning International's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Finning International has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
FTT Dividends
What is Finning International's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CA$2,000 of
Finning International
shares you are expected to receive
CA$66
in your first year as a dividend.
Dividend Amount
- Finning International's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
- Finning International's dividend is below the markets top 25% of dividend payers in Canada (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| Canada Trade Distributors Industry Average Dividend Yield | Market Cap Weighted Average of 10 Stocks | 3% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 331 Stocks | 3.5% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | ||
| 2020-12-31 | 0.86 | 3.00 |
| 2019-12-31 | 0.83 | 3.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-21 | 0.800 | 3.344 |
| 2018-11-05 | 0.800 | 3.155 |
| 2018-05-10 | 0.800 | 2.515 |
| 2017-11-07 | 0.760 | 2.363 |
| 2017-08-09 | 0.760 | 2.641 |
| 2017-05-10 | 0.730 | 2.837 |
| 2016-11-03 | 0.730 | 2.838 |
| 2016-08-03 | 0.730 | 3.045 |
| 2016-05-06 | 0.730 | 3.366 |
| 2016-05-05 | 0.730 | 3.429 |
| 2016-05-04 | 0.730 | 3.421 |
| 2016-02-18 | 0.730 | 3.694 |
| 2015-08-06 | 0.730 | 3.735 |
| 2015-05-06 | 0.730 | 3.052 |
| 2014-11-13 | 0.710 | 2.957 |
| 2014-08-08 | 0.710 | 2.297 |
| 2014-05-13 | 0.710 | 2.346 |
| 2014-02-19 | 0.610 | 2.045 |
| 2013-11-14 | 0.610 | 2.316 |
| 2013-08-08 | 0.610 | 2.675 |
| 2013-05-08 | 0.610 | 2.706 |
| 2012-11-08 | 0.560 | 2.306 |
| 2012-08-08 | 0.560 | 2.324 |
| 2012-05-08 | 0.560 | 2.381 |
| 2012-02-16 | 0.520 | 1.859 |
| 2011-11-08 | 0.520 | 2.180 |
| 2011-08-12 | 0.520 | 2.348 |
| 2011-05-11 | 0.520 | 1.858 |
| 2011-02-16 | 0.480 | 1.744 |
| 2010-11-10 | 0.480 | 1.777 |
| 2010-08-11 | 0.480 | 2.104 |
| 2010-05-13 | 0.480 | 2.607 |
| 2010-02-23 | 0.440 | 2.399 |
| 2009-11-10 | 0.440 | 2.628 |
| 2009-08-12 | 0.440 | 2.687 |
| 2009-05-19 | 0.440 | 2.655 |
| 2009-04-20 | 0.440 | 3.115 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Finning International's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.7x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
Income/ dividend checks
We assess Finning International's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Finning International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Finning International has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
FTT Management
CEO
| COMPENSATION | CA$5,918,689 |
| AGE | 48 |
| TENURE AS CEO | 5.8 years |
CEO Bio
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 Officer and Executive Vice President of Finance at Talisman Energy Inc. (alternate name, Repsol Oil & Gas Canada Inc.) from July 2, 2008 to May 20, 2013. He served as an Executive Vice President of Corporate Development and Planning for both BCE Inc. and Bell Canada Inc. He served as Vice President of Corporate Strategy and Mergers and Acquisitions at Bell Canada Enterprises from 2003 to 2008. He served as Vice President at Goldman, Sachs & Co., focused on M&A in New York and Toronto. From 1998 to 2002, he worked in investment banking at Goldman Sachs & Co. Prior to that, he worked at RBC Capital Markets in the Corporate Finance Department. He has been Non Independent Director at Finning International Inc., since June 2013. He has been a Director of The Bank of Nova Scotia, Scotiabank Tier 1 Trust and Scotiabank Capital Trust since April 12, 2016. He served as a Member of Advisory Board at Berkeley Payment Solutions Inc. He served as a Director of Ligado Networks, LLC since March 2005. He served as an Independent Director of Interfor Corporation since October 2012 until April 28, 2016. He served as a Director at Apptix ASA from September 2004 to May 2005. He served as a Director of LightSquared Inc. (alternate name SkyTerra Communications, Inc.) since March 2005. Mr. Thomson graduated with a Bachelor of Arts in Economics and Political Science from Queen's University, Kingston and an MBA from the University of Chicago, Graduate School of Business.
CEO Compensation
- L.'s compensation has been consistent with company performance over the past year.
- L.'s remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the Finning International management team in years:
- The tenure for the Finning International management team is about average.
Management Team
L. Thomson
CEO, President & Non-Independent Director
CA$6M
48
5.8 yrs
Steve Nielsen
Executive VP & CFO
CA$2M
63
4.1 yrs
Dave Cummings
Executive VP & Chief Digital Officer
CA$1M
0.3 yrs
Marcello Marchese
President of Finning South America
CA$2M
52
6.8 yrs
Mauk Breukels
Vice President of Investor Relations & Corporate Affairs
9.9 yrs
H. Murdoch
General Counsel & Corporate Secretary
3 yrs
Elisha McCallum
Director of Global Communications
Chad Hiley
Chief Human Resources Officer
3.3 yrs
Dave Primrose
Managing Director of Finning UK & Ireland
10 yrs
John Pollesel
Senior Vice President of Mining - Finning Canada
54
4.5 yrs
Board of Directors Tenure
Average tenure and age of the Finning International board of directors in years:
- The tenure for the Finning International board of directors is about average.
Board of Directors
Hal Kvisle
Chairman
CA$208K
65
0.3 yrs
L. Thomson
CEO, President & Non-Independent Director
CA$6M
48
5.8 yrs
Jim Carter
Independent Director
CA$228K
68
11.6 yrs
Nicky Hartery
Independent Director
CA$226K
66
4.9 yrs
Jacynthe Côté
Independent Director
CA$217K
59
4.5 yrs
Stu Levenick
Independent Director
CA$231K
65
3.1 yrs
Kathleen O'Neill
Independent Director
CA$208K
64
12.2 yrs
Chris Patterson
Independent Director
CA$205K
64
8.5 yrs
Marcelo Awad
Independent Director
CA$206K
65
4.9 yrs
Vicki Avril
Independent Director
CA$203K
64
2.4 yrs
Who owns this company?
Recent Insider Trading
- Finning International insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | Value (CA$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Mar 19 | Sell | Jeff Erdman | Individual | 06. Mar 19 | 06. Mar 19 | -2,000 | CA$24.38 | CA$-48,760 | ||
| 11. Feb 19 | Buy | David Cummings | Individual | 14. Dec 18 | 14. Dec 18 | 16,600 | CA$24.11 | CA$400,226 | ||
| 28. Dec 18 | Buy | Harold Kvisle | Individual | 27. Dec 18 | 27. Dec 18 | 2,400 | CA$22.65 | CA$54,360 | ||
| 13. Dec 18 | Buy | Harold Kvisle | Individual | 13. Dec 18 | 13. Dec 18 | 5,000 | CA$24.05 | CA$120,250 | ||
| 08. Jun 18 | Sell | Jeff Erdman | Individual | 08. Jun 18 | 08. Jun 18 | -2,435 | CA$34.05 | CA$-82,876 | ||
Management checks
We assess Finning International's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Finning International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
FTT News
Simply Wall St News
Is Finning International Inc.'s (TSE:FTT) Balance Sheet A Threat To Its Future?
(TSE:FTT) is a small-cap stock with a market capitalization of CA$3.9b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is.
Simply Wall St - – Full articleIs Finning International Inc. (TSE:FTT) Investing Your Capital Efficiently?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleVolatility 101: Should Finning International (TSE:FTT) Shares Have Dropped 28%?
So we wouldn't blame long term Finning International Inc. … And we doubt long term believers are the only worried holders, since the stock price has declined 27% over the last twelve months. … During five years of share price growth, Finning International moved from a loss to profitability.
Simply Wall St - – Full articleFinning International Inc. (TSE:FTT) Has Attractive Fundamentals
Upon building up an investment case for a stock, we should look at various aspects. … that has been able to sustain great financial health over the past … In the following section, I expand a bit more on these key aspects
Simply Wall St - – Full articleIs Finning International Inc. (TSE:FTT) A Smart Pick For Income Investors?
The company currently pays out a dividend yield of 3.3% to shareholders, making it a relatively attractive dividend stock. … View our latest analysis for Finning International … 5 questions to ask before buying a dividend stock
Simply Wall St - – Full articleShould You Be Happy With Finning International Inc.'s (TSE:FTT) 7.4% Earnings Growth?
In this article, I will take a look at Finning International Inc.'s (TSE:FTT) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of FTT's industry performed. … How FTT fared against its long-term earnings performance and its industry. … FTT's trailing twelve-month earnings (from 31 December 2018) of CA$232m has
Simply Wall St - – Full articleFinning International Inc. (TSE:FTT): Time For A Financial Health Check
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Finning International Inc. … This article will examine FTT’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … View our latest analysis for Finning International
Simply Wall St - – Full articleCan We See Significant Institutional Ownership On The Finning International Inc. (TSE:FTT) Share Register?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Finning International is a pretty big company. … institutions own shares in the company.
Simply Wall St - – Full articleHere's What Finning International Inc.'s (TSE:FTT) P/E Is Telling Us
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Finning International has a price to earnings ratio of 17.55, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio
Simply Wall St - – Full articleWhat Does Finning International Inc.'s (TSE:FTT) Share Price Indicate?
saw significant share price movement during recent months on the TSX, rising to highs of CA$33.02 and falling to the lows of CA$22.59. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Finning International's current trading price of CA$23 reflective of the actual value of the?
Simply Wall St - – Full articleFTT Company Info
Description
Finning International Inc. engages in selling, servicing, and renting heavy equipment, engines, and related products in Canada, South America, the United Kingdom, and Ireland. It serves various industries, including mining, construction, agriculture, governmental, paving, and forestry, as well as various power system applications. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was founded in 1933 and is headquartered in Vancouver, Canada.
Details
| Name: | Finning International Inc. |
| FTT | |
| Exchange: | TSX |
| Founded: | 1933 |
| CA$3,967,211,697 | |
| 163,461,545 | |
| Website: | http://www.finning.com |
| Address: |
Finning International Inc. 565 Great Northern Way, Suite 300, Vancouver, British Columbia, V5T 0H8, Canada |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| TSX | FTT | Common Shares | The Toronto Stock Exchange | CA | CAD | 22. May 1981 | |
| OTCPK | FING.F | Common Shares | Pink Sheets LLC | US | USD | 22. May 1981 | |
| DB | CIH | Common Shares | Deutsche Boerse AG | DE | EUR | 22. May 1981 | |
| LSE | 0UVO | Common Shares | London Stock Exchange | GB | CAD | 22. May 1981 |
Number of employees
Current staff
Industry
| Trading Companies and Distributors | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/18 23:35 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/12 |
| Last earnings filing: | 2019/02/21 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
