BIT:FCT

Stock Analysis Report

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Executive Summary

Fincantieri S.p.A. operates in the shipbuilding industry. More Details

Rewards

Trading at 64.9% below our estimate of its fair value

Earnings are forecast to grow 97.26% per year

Risk Analysis

No risks detected for FCT from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Fincantieri's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

FCT

-0.3%

IT Machinery

-0.9%

IT Market


1 Year Return

-42.2%

FCT

-7.3%

IT Machinery

-12.3%

IT Market

Return vs Industry: FCT underperformed the Italian Machinery industry which returned -7.3% over the past year.

Return vs Market: FCT underperformed the Italian Market which returned -12.3% over the past year.


Shareholder returns

FCTIndustryMarket
7 Day-3.2%-0.3%-0.9%
30 Day-7.9%2.2%-0.5%
90 Day-10.2%8.9%-1.4%
1 Year-42.2%-42.2%-6.9%-7.3%-10.2%-12.3%
3 Year-49.0%-49.8%-23.1%-25.6%-9.9%-18.1%
5 Year-16.1%-17.5%50.5%42.0%1.8%-29.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fincantieri 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: FCT (€0.55) is trading below our estimate of fair value (€1.57)

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


Price To Earnings Ratio

PE vs Industry: FCT is unprofitable, so we can't compare its PE Ratio to the IT Machinery industry average.

PE vs Market: FCT is unprofitable, so we can't compare its PE Ratio to the Italian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FCT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FCT is good value based on its PB Ratio (1.1x) compared to the IT Machinery industry average (1.2x).


Next Steps

Future Growth

How is Fincantieri forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

97.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: FCT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FCT's is expected to become profitable in the next 3 years.

Revenue vs Market: FCT's revenue (10.8% per year) is forecast to grow faster than the Italian market (3.6% per year).

High Growth Revenue: FCT's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCT's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Fincantieri performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCT is currently unprofitable.

Growing Profit Margin: FCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FCT is unprofitable, and losses have increased over the past 5 years at a rate of 3.4% per year.

Accelerating Growth: Unable to compare FCT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FCT is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-27.2%).


Return on Equity

High ROE: FCT has a negative Return on Equity (-32.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fincantieri's financial position?


Financial Position Analysis

Short Term Liabilities: FCT's short term assets (€5.5B) do not cover its short term liabilities (€5.6B).

Long Term Liabilities: FCT's short term assets (€5.5B) exceed its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: FCT's debt to equity ratio (380%) is considered high.

Reducing Debt: FCT's debt to equity ratio has increased from 108% to 380% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if FCT has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FCT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Fincantieri current dividend yield, its reliability and sustainability?

1.41%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate FCT'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 FCT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: FCT is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

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


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Giuseppe Bono (76 yo)

8.5yrs

Tenure

€1,187,104

Compensation

Dr. Giuseppe Bono has been the Chief Executive Officer of Fincantieri S.p.A. since March 29, 2012. He served as Interim Executive Vice President of Naval Vessels Division at Fincantieri S.p.A. since 2019 u ...


CEO Compensation Analysis

Compensation vs Market: Giuseppe's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.42M).

Compensation vs Earnings: Giuseppe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Giuseppe Bono
CEO & Director8.5yrs€1.19mno data
Giampiero Massolo
Chairmanno datano datano data
Giuseppe Dado
Chief Financial Officerno datano datano data
Felice Bonavolontà
Group Accounting & Administration Headno datano datano data
Stefano Dentilli
Head of Internal Auditing & Risk Officerno datano datano data
Giuseppe Coronella
Executive Vice President of Offshore Business Unitno datano datano data
Luigi Matarazzo
Executive Vice President of Merchant Ships Division2yrsno datano data
Giorgio Rizzo
Executive Vice President of Services Division11.67yrsno datano data
Giuseppe Cannizzaro
Secretaryno datano datano data

8.5yrs

Average Tenure

68yo

Average Age

Experienced Management: FCT's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Giuseppe Bono
CEO & Director8.5yrs€1.19mno data
Giampiero Massolo
Chairmanno datano datano data
Elisabetta Oliveri
Independent Director1.42yrsno datano data
Fabrizio Palermo
Director4.33yrsno datano data
Paola Muratorio
Independent Director4.33yrsno datano data
Massimiliano Cesare
Independent Director6.17yrs€77.00kno data
Gianluca Ferrero
Chairman of Board of Statutory Auditors6.33yrs€22.10kno data
Fioranna Negri
Standing Statutory Auditor6.33yrs€15.53kno data
Federica Seganti
Independent Director1.42yrsno datano data
Barbara Alemanni
Independent Director1.42yrsno datano data
Luca Errico
Independent Director1.42yrsno datano data
Federica Santini
Independent Director1.42yrsno datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: FCT's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Fincantieri S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fincantieri S.p.A.
  • Ticker: FCT
  • Exchange: BIT
  • Founded: 1959
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €935.065m
  • Shares outstanding: 1.69b
  • Website: https://www.fincantieri.com

Number of Employees


Location

  • Fincantieri S.p.A.
  • Via Genova No. 1
  • Trieste
  • Trieste
  • 34121
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCTBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2014
FCTMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2014
1F8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
0QWNLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2014

Biography

Fincantieri S.p.A. operates in the shipbuilding industry. The company operates in three segments: Shipbuilding; Offshore and Specialized Vessels; and Equipment, Systems and Services. The Shipbuilding segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 03:30
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.