TSX:FTG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Firan Technology Group

Executive Summary

Firan Technology Group Corporation manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards in Canada, the United States, Asia, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Firan Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FTG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

FTG

3.2%

CA Electronic

1.5%

CA Market


1 Year Return

-45.9%

FTG

-4.7%

CA Electronic

-11.5%

CA Market

Return vs Industry: FTG underperformed the Canadian Electronic industry which returned -9.9% over the past year.

Return vs Market: FTG underperformed the Canadian Market which returned -12.4% over the past year.


Shareholder returns

FTGIndustryMarket
7 Day1.7%3.2%1.5%
30 Day-10.0%-2.9%-2.3%
90 Day-15.5%78.1%12.2%
1 Year-45.9%-45.9%-4.7%-4.7%-8.4%-11.5%
3 Year-59.1%-59.1%-38.8%-38.8%4.4%-5.5%
5 Year-8.6%-8.6%-21.3%-21.3%21.9%3.5%

Price Volatility Vs. Market

How volatile is Firan Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Firan Technology Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTG (CA$1.8) is trading below our estimate of fair value (CA$7.18)

Significantly Below Fair Value: FTG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FTG is good value based on its PE Ratio (18.2x) compared to the Electronic industry average (21.2x).

PE vs Market: FTG is poor value based on its PE Ratio (18.2x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: FTG is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: FTG is good value based on its PB Ratio (1x) compared to the CA Electronic industry average (2.6x).


Next Steps

Future Growth

How is Firan Technology Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

100.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTG's forecast earnings growth (100.9% per year) is above the savings rate (1.7%).

Earnings vs Market: FTG's earnings (100.9% per year) are forecast to grow faster than the Canadian market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FTG's revenue (5.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: FTG's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FTG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Firan Technology Group performed over the past 5 years?

-12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTG has high quality earnings.

Growing Profit Margin: FTG's current net profit margins (2%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: FTG's earnings have declined by -12.6% per year over the past 5 years.

Accelerating Growth: FTG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FTG had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Electronic industry average (-9.4%).


Return on Equity

High ROE: FTG's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Firan Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: FTG's short term assets (CA$52.1M) exceed its short term liabilities (CA$26.3M).

Long Term Liabilities: FTG's short term assets (CA$52.1M) exceed its long term liabilities (CA$13.1M).


Debt to Equity History and Analysis

Debt Level: FTG's debt to equity ratio (11.3%) is considered satisfactory.

Reducing Debt: FTG's debt to equity ratio has reduced from 35.8% to 11.3% over the past 5 years.

Debt Coverage: FTG's debt is well covered by operating cash flow (346.3%).

Interest Coverage: FTG's interest payments on its debt are well covered by EBIT (20.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Firan Technology Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FTG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FTG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FTG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FTG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FTG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Brad Bourne (61yo)

16.5yrs

Tenure

CA$547,675

Compensation

Mr. Bradley C. Bourne, also known as Brad, has been the Chief Executive Officer of Firan Technology Group Corporation (formerly Circuit World Corporation) since January 09, 2004 and has been its President  ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD404.46K) is above average for companies of similar size in the Canadian market ($USD173.14K).

Compensation vs Earnings: Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Bourne
President16.5yrsCA$547.68k3.43% CA$1.4m
Jamie Crichton
CFO, VP & Corporate Secretary0.83yrCA$172.95k0.078% CA$31.6k
Andre Khachatourians
VP and GM of FTG Circuits & Aerospace - Chatsworthno dataCA$269.77kno data
Hardeep Heer
VP of Engineering & CTO11.25yrsCA$244.79kno data
Brandon Kuecker
President of FTG Aerospace Tianjin Inc.2.25yrsno datano data

6.8yrs

Average Tenure

Experienced Management: FTG's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Bourne
President16.5yrsCA$547.68k3.43% CA$1.4m
David Masotti
Independent Director16.25yrsCA$25.50k0.17% CA$67.7k
Edward Hanna
Independent Chairman of the Board0.25yrCA$23.50k0.17% CA$67.7k
Michael Andrade
Independent Director4yrsCA$25.50k0.44% CA$177.0k
Kumail Gangjee
Independent Director0.25yrno datano data

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: FTG's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FTG 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

Firan Technology Group Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Firan Technology Group Corporation
  • Ticker: FTG
  • Exchange: TSX
  • Founded: 1983
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: CA$40.208m
  • Shares outstanding: 22.72m
  • Website: https://www.ftgcorp.com

Number of Employees


Location

  • Firan Technology Group Corporation
  • 250 Finchdene Square
  • Toronto
  • Ontario
  • M1X 1A5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTGTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2002
FTGF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2002
22FBST (Boerse-Stuttgart)YesCommon SharesDEEURAug 2002

Biography

Firan Technology Group Corporation manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards in Canada, the United States, Asia, Europe, and internationally. It operates in two segments, FTG Circuits (Circuits) and FTG Aerospace (Aerospace). The Circuits segment provides microvia technologies; buried capacitance, and blind and buried vias; multilayer boards; conducive filled vias; custom millings; cavity boards; metal core constructions; multiple sequential laminations; tented, filled, and flushed plugged vias; differential and controlled impedance products; and embedded filters and inductors, as well as mixed dielectric boards and back planes. It also provides design assistance and 3D modelling, controlled depth drilling, buried resistor layer, performance testing, and back drilling services, as well as engineering services for avionic, military, telecom, medical, advanced test and measurement, contract manufacturer, and power applications. The Aerospace segment provides panels, bezels, keyboards, caution warning annunciators, electro luminescent lamps, lighting power supplies, and electro mechanical subassemblies; and lighting technologies that are used in commercial aerospace and military applications. The company was formerly known as Circuit World Corporation and changed its name to Firan Technology Group Corporation in May 2004. Firan Technology Group Corporation was founded in 1983 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 00:13
End of Day Share Price2020/07/06 00:00
Earnings2020/02/28
Annual Earnings2019/11/30


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.