Finning International
Market Cap
CA$4.2b
Last Updated
2020/11/27 23:10 UTC
Data Sources
Company Financials +
Executive Summary
Finning International Inc. engages in selling, servicing, and renting heavy equipment, and power and energy systems in Canada, the United States, South America, the United Kingdom, and Ireland. 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 +/- 5% a week.
Volatility Over Time: FTT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
7.1%
FTT
4.0%
CA Trade Distributors
2.8%
CA Market
1 Year Return
10.1%
FTT
22.6%
CA Trade Distributors
-0.3%
CA Market
Return vs Industry: FTT underperformed the Canadian Trade Distributors industry which returned 21.1% over the past year.
Return vs Market: FTT exceeded the Canadian Market which returned -0.5% over the past year.
Shareholder returns
| FTT | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.1% | 4.0% | 2.8% |
| 30 Day | 27.3% | 11.6% | 10.0% |
| 90 Day | 31.7% | 19.9% | 5.7% |
| 1 Year | 14.7%10.1% | 26.8%22.6% | 3.3%-0.3% |
| 3 Year | -4.2%-13.4% | 20.5%9.6% | 12.2%1.3% |
| 5 Year | 72.0%46.2% | 108.5%79.3% | 49.1%26.2% |
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 day ago | Simply Wall St
Are Finning International's (TSE:FTT) Statutory Earnings A Good Guide To Its Underlying Profitability?2 weeks ago | Simply Wall St
Should Income Investors Look At Finning International Inc. (TSE:FTT) Before Its Ex-Dividend?3 weeks ago | Simply Wall St
Finning International Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next YearValuation
Is Finning International undervalued compared to its fair value and its price relative to the market?
20.46x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FTT (CA$26.21) is trading above our estimate of fair value (CA$9.53)
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 (20.3x) compared to the CA Trade Distributors industry average (14.5x).
PE vs Market: FTT is poor value based on its PE Ratio (20.3x) compared to the Canadian market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: FTT is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: FTT is overvalued based on its PB Ratio (1.9x) compared to the CA Trade Distributors industry average (1.3x).
Next Steps
Future Growth
How is Finning International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
14.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTT's forecast earnings growth (14.7% per year) is above the savings rate (1.7%).
Earnings vs Market: FTT's earnings (14.7% per year) are forecast to grow slower than the Canadian market (27.2% per year).
High Growth Earnings: FTT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTT's revenue (6.5% per year) is forecast to grow faster than the Canadian market (6.1% per year).
High Growth Revenue: FTT's revenue (6.5% 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 (12.3%).
Next Steps
Past Performance
How has Finning International performed over the past 5 years?
36.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTT has high quality earnings.
Growing Profit Margin: FTT's current net profit margins (3.3%) are higher than last year (3.2%).
Past Earnings Growth Analysis
Earnings Trend: FTT's earnings have grown significantly by 36.4% 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 (-15%) over the past year, making it difficult to compare to the Trade Distributors industry average (27.2%).
Return on Equity
High ROE: FTT's Return on Equity (9.6%) is considered low.
Next Steps
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$1.7B).
Long Term Liabilities: FTT's short term assets (CA$3.3B) exceed its long term liabilities (CA$1.6B).
Debt to Equity History and Analysis
Debt Level: FTT's debt to equity ratio (71.1%) is considered high.
Reducing Debt: FTT's debt to equity ratio has reduced from 73% to 71.1% over the past 5 years.
Debt Coverage: FTT's debt is well covered by operating cash flow (69.7%).
Interest Coverage: FTT's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Finning International current dividend yield, its reliability and sustainability?
3.10%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FTT's dividend (3.13%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).
High Dividend: FTT's dividend (3.13%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).
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 (63.5%), 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?
4.6yrs
Average management tenure
CEO
L. Thomson (50 yo)
7.42yrs
Tenure
CA$13,890,044
Compensation
Mr. L. Scott Thomson has been the Chief Executive Officer and President of Finning International Inc., since June 17, 2013. Prior to joining Finning in 2013, Mr. Thomson served as the Chief Financial Offic...
CEO Compensation Analysis
Compensation vs Market: L.'s total compensation ($USD10.67M) is above average for companies of similar size in the Canadian market ($USD2.98M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.42yrs | CA$13.89m | 0.12% CA$ 5.2m | |
| Executive VP & Chief Digital Officer | 1.83yrs | CA$1.52m | 0.052% CA$ 2.2m | |
| President of Finning Canada | 1.83yrs | CA$1.71m | 0.0053% CA$ 227.3k | |
| Executive VP & CFO | 0.67yr | no data | 0.014% CA$ 613.5k | |
| Senior Vice President of Investor Relations & Treasury | 1.25yrs | no data | 0.0014% CA$ 59.5k | |
| General Counsel & Corporate Secretary | 4.58yrs | no data | 0.0024% CA$ 101.1k | |
| Director of Global Communications | no data | no data | no data | |
| Chief Human Resources Officer | 4.83yrs | no data | 0.0052% CA$ 221.8k | |
| Managing Director of Finning UK & Ireland | 11.58yrs | no data | 0.018% CA$ 782.2k | |
| Senior Vice President of Mining - Finning Canada | 6.08yrs | no data | no data | |
| Senior Vice President of Strategic Planning & Business Development | 4.92yrs | no data | no data | |
| President of Finning South America | 0.83yr | no data | 0.015% CA$ 622.4k |
4.6yrs
Average Tenure
54yo
Average Age
Experienced Management: FTT's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.42yrs | CA$13.89m | 0.12% CA$ 5.2m | |
| Independent Director | 13.75yrs | CA$237.50k | 0.0086% CA$ 367.1k | |
| Independent Director | 2.83yrs | CA$243.79k | no data | |
| Independent Director | 4.67yrs | CA$262.50k | no data | |
| Independent Chairman of the Board | 1.83yrs | CA$388.13k | 0.022% CA$ 917.3k | |
| Independent Director | 4yrs | CA$240.20k | 0.0092% CA$ 393.0k | |
| Independent Director | 1.83yrs | CA$233.00k | 0.00086% CA$ 36.5k | |
| Independent Director | 6.5yrs | CA$257.00k | no data | |
| Independent Director | 10.08yrs | CA$237.50k | 0.0056% CA$ 236.7k | |
| Independent Director | 6.08yrs | CA$252.50k | 0.0062% CA$ 262.1k | |
| Independent Director | 13.17yrs | CA$257.50k | 0.0062% CA$ 262.1k | |
| Independent Director | 1yr | CA$38.92k | no data |
5.4yrs
Average Tenure
66yo
Average Age
Experienced Board: FTT's board of directors are considered experienced (5.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$4.249b
- Shares outstanding: 162.10m
- 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, and power and energy systems in Canada, the United States, South America, the United Kingdom, and Ireland. It offers t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 23:10 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.