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.
Established dividend payer with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
CA Trade Distributors
1 Year Return
CA Trade Distributors
Return vs Industry: FTT underperformed the Canadian Trade Distributors industry which returned -27.3% over the past year.
Return vs Market: FTT underperformed the Canadian Market which returned -24.8% over the past year.
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 StDoes Finning International Inc.'s (TSE:FTT) CEO Salary Compare Well With Others?
1 week ago | Simply Wall StAre Finning International Inc.’s (TSE:FTT) Returns On Investment Worth Your While?
2 weeks ago | Simply Wall StExecutive VP & Chief Digital Officer David Cummings Just Bought Shares In Finning International Inc. (TSE:FTT)
Is Finning International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTT (CA$15.55) is trading below our estimate of fair value (CA$29.65)
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 (10.5x) compared to the Trade Distributors industry average (10.1x).
PE vs Market: FTT is poor value based on its PE Ratio (10.5x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: FTT is poor value based on its PEG Ratio (50.4x)
Price to Book Ratio
PB vs Industry: FTT is overvalued based on its PB Ratio (1.2x) compared to the CA Trade Distributors industry average (0.7x).
How is Finning International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTT's forecast earnings growth (0.2% per year) is below the savings rate (1.4%).
Earnings vs Market: FTT's earnings (0.2% per year) are forecast to grow slower than the Canadian market (5.1% per year).
High Growth Earnings: FTT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTT's revenue is expected to decline over the next 3 years (-3.5% per year).
High Growth Revenue: FTT's revenue is forecast to decline over the next 3 years (-3.5% 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 (14.6%).
How has Finning International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTT has high quality earnings.
Growing Profit Margin: FTT's current net profit margins (3.1%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: FTT's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: FTT's earnings growth over the past year (4.3%) is below its 5-year average (14.6% per year).
Earnings vs Industry: FTT earnings growth over the past year (4.3%) underperformed the Trade Distributors industry 4.3%.
Return on Equity
High ROE: FTT's Return on Equity (11.4%) is considered low.
How is Finning International's financial position?
Financial Position Analysis
Short Term Liabilities: FTT's short term assets (CA$3.7B) exceed its short term liabilities (CA$2.0B).
Long Term Liabilities: FTT's short term assets (CA$3.7B) exceed its long term liabilities (CA$1.8B).
Debt to Equity History and Analysis
Debt Level: FTT's debt to equity ratio (82.5%) is considered high.
Reducing Debt: FTT's debt to equity ratio has increased from 66.8% to 82.5% over the past 5 years.
Debt Coverage: FTT's debt is not well covered by operating cash flow (11%).
Interest Coverage: FTT's interest payments on its debt are well covered by EBIT (4.5x coverage).
What is Finning International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FTT's dividend (5.27%) is higher than the bottom 25% of dividend payers in the Canadian market (2.75%).
High Dividend: FTT's dividend (5.27%) is low compared to the top 25% of dividend payers in the Canadian market (8.52%).
Stability and Growth of Payments
Stable Dividend: FTT's dividends per share have been stable in the past 10 years.
Growing Dividend: FTT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55%), FTT's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FTT's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
L. Thomson (49yo)
Mr. L. Scott Thomson has been the Chief Executive Officer and President of Finning International Inc., since June 17, 2013. Prior to joining Finning in 2013, Mr. Thomson served as the Chief Financial Offic ...
CEO Compensation Analysis
Compensation vs Market: L.'s total compensation ($USD9.82M) is above average for companies of similar size in the Canadian market ($USD2.57M).
Compensation vs Earnings: L.'s compensation has increased by more than 20% in the past year.
|Executive VP & Chief Digital Officer||1.25yrs||CA$1.52m||0.052% CA$1.3m|
|President of Finning Canada||1.25yrs||CA$1.71m||0.0010% CA$26.0k|
|Chief Financial Officer||0.083yr||no data||0.013% CA$321.2k|
|Senior Vice President of Investor Relations & Treasury||0.67yr||no data||0.0014% CA$35.4k|
|General Counsel & Corporate Secretary||4yrs||no data||0.0024% CA$60.1k|
|Director of Global Communications||no data||no data||no data|
|Chief Human Resources Officer||4.25yrs||no data||0.0052% CA$131.7k|
|Managing Director of Finning UK & Ireland||11yrs||no data||0.018% CA$464.0k|
|Senior Vice President of Mining - Finning Canada||5.5yrs||no data||no data|
Experienced Management: FTT's management team is considered experienced (4 years average tenure).
|Independent Director||13.17yrs||CA$237.50k||0.0086% CA$217.6k|
|Independent Director||4.08yrs||CA$262.50k||no data|
|Independent Chairman of the Board||1.25yrs||CA$388.13k||0.022% CA$544.4k|
|Independent Director||3.42yrs||CA$240.20k||0.0092% CA$233.3k|
|Independent Director||5.92yrs||CA$257.00k||no data|
|Independent Director||9.5yrs||CA$237.50k||0.0056% CA$140.3k|
|Independent Director||5.92yrs||CA$237.50k||no data|
|Independent Director||5.5yrs||CA$252.50k||0.0062% CA$155.4k|
|Independent Director||12.58yrs||CA$257.50k||0.0062% CA$155.4k|
Experienced Board: FTT's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FTT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Finning International Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Finning International Inc.
- Ticker: FTT
- Exchange: TSX
- Founded: 1933
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$2.527b
- Shares outstanding: 162.52m
- Website: https://www.finning.com
Number of Employees
- Finning International Inc.
- 565 Great Northern Way
- Suite 300
- British Columbia
- V5T 0H8
|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|
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 tractors, off-highway trucks, drills, electric rope shovels, hydraulic excavators and draglines, backhoe loaders, excavators, forklifts, articulated trucks, loaders, log loaders, tree harvesters, skidders, motor graders, paving products, compactors, wheel tractor-scrapers, pipe layers, extensive underground equipment, and other products. The company also sells and rents Caterpillar-branded and non-branded engines and power systems for use in electric power generation, oil and gas, marine, and industrial applications; and supplies complete or partial power systems engineering projects to customers. It serves various industries, including mining, agriculture, quarrying, forestry, construction, pipeline, oil and gas, marine transportation, fisheries, and commercial transport, as well as various power system applications and government sector. 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 01:53|
|End of Day Share Price||2020/04/06 00:00|
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.