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FTT

Finning InternationalTSX:FTT Stock Report

Market Cap

CA$5.2b

7D

-3.9%

1Y

18.3%

Updated

07 Dec, 2021

Data

Company Financials +
FTT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends4/6

FTT Stock Overview

Finning International Inc. sells, services, and rents heavy equipment, and power and energy systems in Canada, Chile, the United Kingdom, Argentina, and internationally.

Finning International Competitors

Toromont Industries

TSX:TIH

CA$9.0b

Ashtead Group

LSE:AHT

UK£27.6b

United Rentals

NYSE:URI

US$25.0b

Hertz Global Holdings

NasdaqGS:HTZ

US$12.3b

Price History & Performance

Summary of all time highs, changes and price drops for Finning International
Historical stock prices
Current Share PriceCA$32.75
52 Week HighCA$40.22
52 Week LowCA$26.56
Beta1.64
1 Month Change-10.74%
3 Month Change0.83%
1 Year Change18.32%
3 Year Change33.46%
5 Year Change21.84%
Change since IPO879.44%

Recent News & Updates

Nov 29
Here's Why I Think Finning International (TSE:FTT) Is An Interesting Stock

Here's Why I Think Finning International (TSE:FTT) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Nov 13
Finning International's (TSE:FTT) Dividend Will Be Increased To CA$0.23

Finning International's (TSE:FTT) Dividend Will Be Increased To CA$0.23

Finning International Inc. ( TSE:FTT ) has announced that it will be increasing its dividend on the 9th of December to...

Shareholder Returns

FTTCA Trade DistributorsCA Market
7D-3.9%-2.2%-1.3%
1Y18.3%23.4%19.4%

Return vs Industry: FTT underperformed the Canadian Trade Distributors industry which returned 21.9% over the past year.

Return vs Market: FTT matched the Canadian Market which returned 18.4% over the past year.

Price Volatility

Is FTT's price volatile compared to industry and market?
FTT volatility
FTT Average Weekly Movement4.0%
Trade Distributors Industry Average Movement5.0%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.6%

Stable Share Price: FTT is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FTT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193313,188L. Thomsonhttps://www.finning.com

Finning International Inc. sells, services, and rents heavy equipment, and power and energy systems in Canada, Chile, the United Kingdom, Argentina, and internationally. It offers telehandlers, compact and small wheel loaders, mini excavators; heavy construction equipment, such as articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, excavators, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, track loaders, and wheel tractor-scrapers; and skidders, forest machines, track feller bunchers, log stackers, multi docker material handlers, cable yarding systems, dozers, drills, electric rope shovels, hydraulic mining shovels, and underground mining load haul dump (LHD) loaders. The company is also involved in electric power generation, marine power, petroleum/oil and gas, and truck engine installations.

Finning International Fundamentals Summary

How do Finning International's earnings and revenue compare to its market cap?
FTT fundamental statistics
Market CapCA$5.23b
Earnings (TTM)CA$332.00m
Revenue (TTM)CA$7.01b

15.8x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTT income statement (TTM)
RevenueCA$7.01b
Cost of RevenueCA$5.28b
Gross ProfitCA$1.74b
ExpensesCA$1.40b
EarningsCA$332.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.08
Gross Margin24.75%
Net Profit Margin4.74%
Debt/Equity Ratio66.1%

How did FTT perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

41%

Payout Ratio

Valuation

Is Finning International undervalued compared to its fair value and its price relative to the market?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTT (CA$32.75) is trading below our estimate of fair value (CA$36.87)

Significantly Below Fair Value: FTT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FTT is poor value based on its PE Ratio (15.8x) compared to the Canadian Trade Distributors industry average (9x).

PE vs Market: FTT is poor value based on its PE Ratio (15.8x) compared to the Canadian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: FTT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FTT is overvalued based on its PB Ratio (2.3x) compared to the CA Trade Distributors industry average (1.2x).


Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTT's forecast earnings growth (12% per year) is above the savings rate (1.6%).

Earnings vs Market: FTT's earnings (12% per year) are forecast to grow faster than the Canadian market (11.4% per year).

High Growth Earnings: FTT's earnings are forecast to grow, but not significantly.

Revenue vs Market: FTT's revenue (7.1% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: FTT's revenue (7.1% 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 (15.6%).


Past Performance

How has Finning International performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTT has high quality earnings.

Growing Profit Margin: FTT's current net profit margins (4.7%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: FTT has become profitable over the past 5 years, growing earnings by 24.1% per year.

Accelerating Growth: FTT's earnings growth over the past year (58.1%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: FTT earnings growth over the past year (58.1%) underperformed the Trade Distributors industry 69.7%.


Return on Equity

High ROE: FTT's Return on Equity (14.3%) is considered low.


Financial Health

How is Finning International's financial position?


Financial Position Analysis

Short Term Liabilities: FTT's short term assets (CA$3.6B) exceed its short term liabilities (CA$2.2B).

Long Term Liabilities: FTT's short term assets (CA$3.6B) exceed its long term liabilities (CA$1.5B).


Debt to Equity History and Analysis

Debt Level: FTT's net debt to equity ratio (43.8%) is considered high.

Reducing Debt: FTT's debt to equity ratio has reduced from 76.5% to 66.1% over the past 5 years.

Debt Coverage: FTT's debt is well covered by operating cash flow (35.8%).

Interest Coverage: FTT's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

What is Finning International current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FTT's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: FTT's dividend (2.75%) is low compared to the top 25% of dividend payers in the Canadian market (4.75%).


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 reasonably low payout ratio (40.9%), FTT's dividend payments are well 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?

2.1yrs

Average management tenure


CEO

L. Thomson (51 yo)

8.5yrs

Tenure

CA$6,357,719

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 ($USD4.97M) is above average for companies of similar size in the Canadian market ($USD2.85M).

Compensation vs Earnings: L.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FTT's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: FTT's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FTT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Finning International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Finning International Inc.
  • Ticker: FTT
  • Exchange: TSX
  • Founded: 1933
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$5.235b
  • Shares outstanding: 159.84m
  • Website: https://www.finning.com

Number of Employees


Location

  • Finning International Inc.
  • 19100 94 Avenue
  • South Surrey
  • British Columbia
  • V4N 5C3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:22
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.