Finning International
Market Cap
CA$3.5b
Last Updated
2019/10/21 23:35 UTC
Data Sources
Company Financials +
Executive Summary
Finning International Inc. engages in selling, servicing, and renting heavy equipment, engines, and related products in Canada, South America, the United Kingdom, and Ireland.
Snowflake
Fundamentals
Established dividend payer and fair value.
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
Market Performance
7 Day Return
-2.7%
FTT
0.6%
CA Trade Distributors
0.2%
CA Market
1 Year Return
-26.8%
FTT
-13.4%
CA Trade Distributors
2.4%
CA Market
Return vs Industry: FTT underperformed the Canadian Trade Distributors industry which returned -13.4% over the past year.
Return vs Market: FTT underperformed the Canadian Market which returned 2.4% over the past year.
Shareholder returns
| FTT | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | 0.6% | 0.2% |
| 30 Day | -6.4% | -1.2% | -3.3% |
| 90 Day | -6.8% | -0.8% | -1.8% |
| 1 Year | -24.3%-26.8% | -10.7%-13.4% | 6.0%2.4% |
| 3 Year | -5.5%-13.4% | 18.2%8.6% | 14.2%4.0% |
| 5 Year | -12.7%-25.0% | 26.0%6.2% | 27.2%8.6% |
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
4 days ago | Simply Wall St
Does Finning International (TSE:FTT) Have A Healthy Balance Sheet?1 week ago | Simply Wall St
If You Had Bought Finning International (TSE:FTT) Stock A Year Ago, You'd Be Sitting On A 35% Loss, Today3 weeks ago | Simply Wall St
Is Finning International Inc. (TSE:FTT) Trading At A 41% Discount?Valuation
Is Finning International undervalued compared to its fair value and its price relative to the market?
43.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTT (CA$21.57) is trading below our estimate of fair value (CA$38.19)
Significantly Below Fair Value: FTT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FTT is poor value based on its PE Ratio (18.2x) compared to the Trade Distributors industry average (13.4x).
PE vs Market: FTT is poor value based on its PE Ratio (18.2x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: FTT is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: FTT is overvalued based on its PB Ratio (1.7x) compared to the CA Trade Distributors industry average (0.8x).
Next Steps
Future Growth
How is Finning International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
18.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTT's forecast earnings growth (18.5% per year) is above the savings rate (1.9%).
Earnings vs Market: FTT's earnings (18.5% per year) are forecast to grow faster than the Canadian market (12.9% per year).
High Growth Earnings: FTT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTT's revenue (3% per year) is forecast to grow slower than the Canadian market (5.5% per year).
High Growth Revenue: FTT's revenue (3% 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 (15.8%).
Next Steps
Past Performance
How has Finning International performed over the past 5 years?
0.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: FTT's earnings have grown by 0.2% per year over the past 5 years.
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 (-26.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (-7%).
Return on Equity
High ROE: FTT's Return on Equity (9.6%) is considered low.
Return on Assets
ROA vs Industry: FTT has a higher Return on Assets than the Trade Distributors industry average last year.
Return on Capital Employed
ROCE Improving: FTT has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Finning International's financial position?
Financial Position Analysis
Short Term Liabilities: FTT's short term assets (CA$4.2B) exceeds its short term liabilities (CA$2.6B)
Long Term Liabilities: FTT's short term assets (4.2B) exceeds its long term liabilities (1.8B)
Debt to Equity History and Analysis
Debt Level: FTT's debt to equity ratio (100.7%) is considered high
Reducing Debt: FTT's debt to equity ratio has increased from 78% to 100.7% over the past 5 years.
Debt Coverage: FTT's debt is not well covered by operating cash flow (1.6%).
Interest Coverage: FTT's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: FTT has a high level of physical assets or inventory.
Debt Coverage by Assets: FTT's debt is covered by short term assets (assets are 2.040150x debt).
Next Steps
Dividend
What is Finning International's current dividend yield, its reliability and sustainability?
3.80%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: FTT's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: FTT's dividend (3.8%) is low compared to the top 25% of dividend payers in the Canadian market (5.96%).
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 (68%), FTT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FTT's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).
Next Steps
Management
What is the CEO of Finning International's salary, the management and board of directors tenure and is there insider trading?
4.6yrs
Average management tenure
CEO
L. Thomson (49yo)
6.3yrs
Tenure
CA$5,918,689
Compensation
Mr. L. Scott Thomson has been the Chief Executive Officer and President of Finning International Inc., since June 17, 2013. Prior to joining Finning in 2013, Mr. Thomson served as the Chief Financial Offic ...
CEO Compensation Analysis
Compensation vs. Market: L.'s total compensation ($USD4.52M) is about average for companies of similar size in the Canadian market ($USD2.95M).
Compensation vs Earnings: L.'s compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.6yrs
Average Tenure
54.5yo
Average Age
Experienced Management: FTT's management team is considered experienced (4.6 years average tenure).
Board Age and Tenure
5.4yrs
Average Tenure
65.5yo
Average Age
Experienced Board: FTT's board of directors are considered experienced (5.4 years average tenure).
Insider Trading
Insider Buying: FTT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,565 |
| Max Price | CA$21.78 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | CA$23.31 |
| Entity | Individual |
| Role | Senior Key Executive Managing Director of Finning UK & Ireland |
| Shares | 1,000 |
| Max Price | CA$21.50 |
| Entity | Individual |
| Shares | 3,484 |
| Max Price | CA$22.67 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | CA$23.07 |
| Entity | Individual |
| Shares | 2,240 |
| Max Price | CA$22.81 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | CA$24.38 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & Chief Digital Officer |
| Shares | 16,600 |
| Max Price | CA$24.11 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman |
| Shares | 2,400 |
| Max Price | CA$22.65 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman |
| Shares | 5,000 |
| Max Price | CA$24.05 |
Ownership Breakdown
Management Team
Steve Nielsen (64yo)
Executive VP & CFO
- Tenure: 4.6yrs
- Compensation: CA$2.12m
L. Thomson (49yo)
CEO, President & Non-Independent Director
- Tenure: 6.3yrs
- Compensation: CA$5.92m
Dave Primrose
Managing Director of Finning UK & Ireland
- Tenure: 10.5yrs
John Pollesel (56yo)
Senior Vice President of Mining - Finning Canada
- Tenure: 5yrs
Chad Hiley
Chief Human Resources Officer
- Tenure: 3.8yrs
Marcello Marchese (53yo)
President of Finning South America
- Tenure: 7.3yrs
- Compensation: CA$1.69m
Amanda Hobson
Senior Vice President of Investor Relations & Treasury
- Tenure: 0.2yrs
Dave Cummings
Executive VP & Chief Digital Officer
- Tenure: 0.8yrs
- Compensation: CA$1.49m
H. Murdoch
General Counsel & Corporate Secretary
- Tenure: 3.5yrs
Elisha McCallum
Director of Global Communications
- Tenure: 0yrs
Board Members
Kathleen O'Neill (65yo)
Independent Director
- Tenure: 12.7yrs
- Compensation: CA$207.50k
Stu Levenick (66yo)
Independent Director
- Tenure: 3.6yrs
- Compensation: CA$231.00k
Hal Kvisle (66yo)
Independent Chairman
- Tenure: 0.8yrs
- Compensation: CA$207.50k
Vicki Avril (65yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: CA$203.46k
Nicky Hartery (67yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: CA$225.50k
Chris Patterson (65yo)
Independent Director
- Tenure: 9yrs
- Compensation: CA$204.74k
Marcelo Awad (66yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: CA$206.00k
Jacynthe Côté (60yo)
Independent Director
- Tenure: 5yrs
- Compensation: CA$216.50k
L. Thomson (49yo)
CEO, President & Non-Independent Director
- Tenure: 6.3yrs
- Compensation: CA$5.92m
Jim Carter (69yo)
Independent Director
- Tenure: 12.1yrs
- Compensation: CA$227.50k
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$3.523b
- Shares outstanding: 163.31m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FTT | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 1981 |
| CIH | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 1981 |
| FING.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 1981 |
| 0UVO | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | May 1981 |
Biography
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, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:35 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.