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Finning International

TSX:FTT
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FTT
TSX
CA$4B
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company 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. The last earnings update was 56 days ago. More info.


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FTT Share Price and Events
7 Day Returns
1%
TSX:FTT
-0.3%
CA Trade Distributors
0.6%
CA Market
1 Year Returns
-23.4%
TSX:FTT
-8.4%
CA Trade Distributors
3.6%
CA Market
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.
Price Volatility
FTT
Industry
5yr Volatility vs Market

FTT Value

 Is Finning International undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Finning International.

TSX:FTT Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for TSX:FTT
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.

TSX:FTT DCF 1st Stage: Next 10 year cash flow forecast
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
TSX:FTT DCF 2nd Stage: Terminal Value
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
TSX:FTT Total Equity Value
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
TSX:FTT Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
TSX:FTT PE (Price to Earnings) Ratio Data Sources
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.

TSX:FTT PE (Price to Earnings) Ratio Calculation
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?
Raw Data
TSX:FTT PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

TSX:FTT PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
TSX:FTT PB (Price to Book) Ratio Data Sources
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
TSX:FTT PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Finning International's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. 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

 How is Finning International expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

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!
Annual Growth Rate
21.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Finning International expected to grow at an attractive rate?
  • 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
Raw Data
TSX:FTT Future Growth Rates Data Sources
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
Raw Data
TSX:FTT Analysts Growth Expectations Data Sources
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 numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FTT Future Estimates Data
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
TSX:FTT Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Finning International's earnings are expected to grow significantly at over 20% yearly.
  • Finning International's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:FTT 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.

TSX:FTT Future Estimates Data
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
TSX:FTT Past Financials Data
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%).
X
Future performance checks
We assess Finning International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Finning International's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Finning International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Finning International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FTT Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Finning International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Finning International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Finning International Company Filings, last reported 3 months ago.

TSX:FTT Past Debt and Equity Data
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).
X
Financial health checks
We assess Finning International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Finning International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
3.3%
Current annual income from Finning International dividends. Estimated to be 3.49% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
TSX:FTT Annualized Past and Future Dividends
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.

TSX:FTT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.86 3.00
2019-12-31 0.83 3.00
TSX:FTT Past Annualized Dividends Data
Date (Data in CA$) 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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Finning International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Finning International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
L. Thomson
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:

4.5
Average Tenure
53
Average Age
  • The tenure for the Finning International management team is about average.
Management Team

L. Thomson

TITLE
CEO, President & Non-Independent Director
COMPENSATION
CA$6M
AGE
48
TENURE
5.8 yrs

Steve Nielsen

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
AGE
63
TENURE
4.1 yrs

Dave Cummings

TITLE
Executive VP & Chief Digital Officer
COMPENSATION
CA$1M
TENURE
0.3 yrs

Marcello Marchese

TITLE
President of Finning South America
COMPENSATION
CA$2M
AGE
52
TENURE
6.8 yrs

Mauk Breukels

TITLE
Vice President of Investor Relations & Corporate Affairs
TENURE
9.9 yrs

H. Murdoch

TITLE
General Counsel & Corporate Secretary
TENURE
3 yrs

Elisha McCallum

TITLE
Director of Global Communications

Chad Hiley

TITLE
Chief Human Resources Officer
TENURE
3.3 yrs

Dave Primrose

TITLE
Managing Director of Finning UK & Ireland
TENURE
10 yrs

John Pollesel

TITLE
Senior Vice President of Mining - Finning Canada
AGE
54
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Finning International board of directors in years:

4.9
Average Tenure
64.5
Average Age
  • The tenure for the Finning International board of directors is about average.
Board of Directors

Hal Kvisle

TITLE
Chairman
COMPENSATION
CA$208K
AGE
65
TENURE
0.3 yrs

L. Thomson

TITLE
CEO, President & Non-Independent Director
COMPENSATION
CA$6M
AGE
48
TENURE
5.8 yrs

Jim Carter

TITLE
Independent Director
COMPENSATION
CA$228K
AGE
68
TENURE
11.6 yrs

Nicky Hartery

TITLE
Independent Director
COMPENSATION
CA$226K
AGE
66
TENURE
4.9 yrs

Jacynthe Côté

TITLE
Independent Director
COMPENSATION
CA$217K
AGE
59
TENURE
4.5 yrs

Stu Levenick

TITLE
Independent Director
COMPENSATION
CA$231K
AGE
65
TENURE
3.1 yrs

Kathleen O'Neill

TITLE
Independent Director
COMPENSATION
CA$208K
AGE
64
TENURE
12.2 yrs

Chris Patterson

TITLE
Independent Director
COMPENSATION
CA$205K
AGE
64
TENURE
8.5 yrs

Marcelo Awad

TITLE
Independent Director
COMPENSATION
CA$206K
AGE
65
TENURE
4.9 yrs

Vicki Avril

TITLE
Independent Director
COMPENSATION
CA$203K
AGE
64
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • Finning International insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) 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
X
Management checks
We assess Finning International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Is 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 -

Volatility 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 -

Finning 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 -

Is 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 -

Should 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 -

Finning 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 -

Can 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 -

Here'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 -

What 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 -

FTT 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
Staff numbers
13,146
Finning International employees.
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.