TSX:FTT

Stock Analysis Report

Finning International

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

-1.1%

TSX:FTT

-0.1%

CA Trade Distributors

-0.9%

CA Market


1 Year Return

-28.9%

TSX:FTT

-20.7%

CA Trade Distributors

-6.1%

CA Market

FTT underperformed the Trade Distributors industry which returned -20% over the past year.

FTT underperformed the Market in Canada which returned -5% over the past year.


Share holder returns

FTTIndustryMarket
7 Day-1.1%-0.1%-0.9%
30 Day-5.7%-4.1%-3.9%
90 Day-3.2%-0.7%-2.9%
1 Year-26.5%-28.9%-18.4%-20.7%-2.8%-6.1%
3 Year1.8%-6.7%16.5%7.2%13.2%3.1%
5 Year-25.1%-35.6%10.9%-6.3%10.8%-4.7%

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

Valuation

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

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Finning International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Finning International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

Finning International is good value based on expected growth next year.


Price Based on Value of Assets

Finning International is overvalued based on assets compared to the CA Trade Distributors industry average.


Next Steps

Future Growth

How is Finning International expected 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 Estimates


Future Annual Growth Analysis

Finning International's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Finning International's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).

Finning International's revenue growth is positive but not above the Canada market average.

Finning International's earnings growth is expected to exceed the Canada market average.

Finning International's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Finning International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Finning International's year on year earnings growth rate has been positive over the past 5 years.

Finning International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Finning International's 1-year earnings growth is negative, it can't be compared to the CA Trade Distributors industry average.


Return on Equity

Finning International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Finning International used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Finning International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Finning International's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Finning International's level of debt (100.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (78% vs 100.7% today).

Debt is not well covered by operating cash flow (1.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

3.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Finning International's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Finning International's dividend is below the markets top 25% of dividend payers in Canada (5.88%).

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

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

L. Thomson (49yo)

6.2yrs

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

L.'s remuneration is higher than average for companies of similar size in Canada.

L.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

54yo

Average Age

The tenure for the Finning International management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

65.5yo

Average Age

The tenure for the Finning International board of directors is about average.


Insider Trading

More shares have been bought than sold by Finning International individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$55,85515 Aug 19
Greg Palaschuk
EntityIndividual
Shares2,565
Max PriceCA$21.78
BuyCA$23,30508 Aug 19
Christopher Patterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$23.31
BuyCA$21,50003 Jun 19
David F. Primrose
EntityIndividual
Role
Senior Key Executive
Managing Director of Finning UK & Ireland
Shares1,000
Max PriceCA$21.50
SellCA$78,98215 May 19
Cornelis Breukels
EntityIndividual
Shares3,484
Max PriceCA$22.67
BuyCA$115,35110 May 19
Vicki Avril
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$23.07
BuyCA$51,09510 May 19
Greg Palaschuk
EntityIndividual
Shares2,240
Max PriceCA$22.81
SellCA$48,76006 Mar 19
Jeff Erdman
EntityIndividual
Shares2,000
Max PriceCA$24.38
BuyCA$400,22611 Feb 19
David Cummings
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Digital Officer
Shares16,600
Max PriceCA$24.11
BuyCA$54,36028 Dec 18
Harold Kvisle
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,400
Max PriceCA$22.65
BuyCA$120,25013 Dec 18
Harold Kvisle
EntityIndividual
Role
Chairman of the Board
Chairman
Shares5,000
Max PriceCA$24.05

Ownership Breakdown


Management Team

  • Steve Nielsen (64yo)

    Executive VP & CFO

    • Tenure: 4.4yrs
    • Compensation: CA$2.12m
  • L. Thomson (49yo)

    CEO, President & Non-Independent Director

    • Tenure: 6.2yrs
    • Compensation: CA$5.92m
  • Dave Primrose

    Managing Director of Finning UK & Ireland

    • Tenure: 10.3yrs
  • John Pollesel (55yo)

    Senior Vice President of Mining - Finning Canada

    • Tenure: 4.8yrs
  • Chad Hiley

    Chief Human Resources Officer

    • Tenure: 3.6yrs
  • Mauk Breukels

    Vice President of Investor Relations & Corporate Affairs

    • Tenure: 10.3yrs
  • Marcello Marchese (53yo)

    President of Finning South America

    • Tenure: 7.2yrs
    • Compensation: CA$1.69m
  • Dave Cummings

    Executive VP & Chief Digital Officer

    • Tenure: 0.6yrs
    • Compensation: CA$1.49m
  • H. Murdoch

    General Counsel & Corporate Secretary

    • Tenure: 3.3yrs
  • Elisha McCallum

    Director of Global Communications

    • Tenure: 0.0yrs

Board Members

  • Kathleen O'Neill (65yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: CA$207.50k
  • Stu Levenick (66yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$231.00k
  • Hal Kvisle (66yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: CA$207.50k
  • Vicki Avril (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$203.46k
  • Nicky Hartery (67yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$225.50k
  • Chris Patterson (65yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: CA$204.74k
  • Marcelo Awad (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$206.00k
  • Jacynthe Côté (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$216.50k
  • L. Thomson (49yo)

    CEO, President & Non-Independent Director

    • Tenure: 6.2yrs
    • Compensation: CA$5.92m
  • Jim Carter (69yo)

    Independent Director

    • Tenure: 11.9yrs
    • 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$3.565b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTTTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1981
CIHDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1981
FING.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1981
0UVOLSE (London Stock Exchange)YesCommon SharesGBCADMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:37
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.