BIT:FCT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with acceptable track record.

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

1.1%

FCT

2.0%

IT Machinery

0.6%

IT Market


1 Year Return

-9.4%

FCT

-1.6%

IT Machinery

16.9%

IT Market

Return vs Industry: FCT underperformed the Italian Machinery industry which returned -0.6% over the past year.

Return vs Market: FCT underperformed the Italian Market which returned 18.6% over the past year.


Shareholder returns

FCTIndustryMarket
7 Day1.1%2.0%0.6%
30 Day-0.3%2.2%0.1%
90 Day-5.2%6.7%6.1%
1 Year-8.5%-9.4%0.2%-1.6%22.1%16.9%
3 Year67.1%64.2%28.1%22.7%27.0%8.8%
5 Year27.4%25.2%59.1%48.9%23.4%-18.1%

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?

22.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FCT (€0.91) is trading above our estimate of fair value (€0.75)

Significantly Below Fair Value: FCT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FCT is poor value based on its PE Ratio (22.9x) compared to the Machinery industry average (17.5x).

PE vs Market: FCT is poor value based on its PE Ratio (22.9x) compared to the Italian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: FCT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: FCT is good value based on its PB Ratio (1.3x) compared to the IT Machinery industry average (1.9x).


Next Steps

Future Growth

How is Fincantieri forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

48.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCT's forecast earnings growth (48.8% per year) is above the savings rate (1.2%).

Earnings vs Market: FCT's earnings (48.8% per year) are forecast to grow faster than the Italian market (8.7% per year).

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

Revenue vs Market: FCT's revenue (6.9% per year) is forecast to grow faster than the Italian market (3.8% per year).

High Growth Revenue: FCT's revenue (6.9% 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 (14.4%).


Next Steps

Past Performance

How has Fincantieri performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCT has high quality earnings.

Growing Profit Margin: FCT's current net profit margins (1.2%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: FCT's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: FCT's earnings growth over the past year (2.7%) is below its 5-year average (21.4% per year).

Earnings vs Industry: FCT earnings growth over the past year (2.7%) exceeded the Machinery industry -7.6%.


Return on Equity

High ROE: FCT's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fincantieri's financial position?


Financial Position Analysis

Short Term Liabilities: FCT's short term assets (€4.8B) exceed its short term liabilities (€4.7B).

Long Term Liabilities: FCT's short term assets (€4.8B) exceed its long term liabilities (€1.1B).


Debt to Equity History and Analysis

Debt Level: FCT's debt to equity ratio (187.4%) is considered high.

Reducing Debt: FCT's debt to equity ratio has increased from 111.7% to 187.4% over the past 5 years.

Debt Coverage: FCT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FCT's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: FCT has a high level of physical assets or inventory.

Debt Coverage by Assets: FCT's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%4.1%industryaverage2.1%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: FCT's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: FCT's dividend (1.1%) is low compared to the top 25% of dividend payers in the Italian market (4.19%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FCT has been paying a dividend for less than 10 years.

Growing Dividend: FCT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), FCT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCT's dividends in 3 years are forecast to be thoroughly covered by earnings (10.3% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Giuseppe Bono (75yo)

7.8yrs

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 ($USD0.00) is below average for companies of similar size in the Italian market ($USD1.05M).

Compensation vs Earnings: Giuseppe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

65yo

Average Age

Experienced Management: FCT's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

55.5yo

Average Age

Experienced Board: FCT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Giuseppe Bono (75yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: €1.19m
  • Umberto Baldi

    Secretary

    • Stefano Dentilli

      Head of Internal Auditing & Risk Officer

      • Giuseppe Coronella

        Executive Vice President of Offshore Business Unit

        • Pier Ragni (48yo)

          Executive Vice President of Offshore & Specialized Vessels Division

          • Tenure: 1yrs
        • Giampiero Massolo (65yo)

          Chairman

          • Giuseppe Dado

            Chief Financial Officer

            • Luigi Matarazzo (54yo)

              Executive Vice President of Merchant Ships Division

              • Tenure: 1.3yrs
            • Giorgio Rizzo (69yo)

              Executive Vice President of Services Division

              • Tenure: 11yrs
            • Felice Bonavolontà

              Group Accounting & Administration Head


              Board Members

              • Elisabetta Oliveri (56yo)

                Independent Director

                • Tenure: 0.8yrs
              • Giuseppe Bono (75yo)

                CEO & Director

                • Tenure: 7.8yrs
                • Compensation: €1.19m
              • Fabrizio Palermo (48yo)

                Director

                • Tenure: 3.7yrs
              • Paola Muratorio (70yo)

                Independent Director

                • Tenure: 3.7yrs
              • Massimiliano Cesare (52yo)

                Independent Director

                • Tenure: 5.5yrs
                • Compensation: €77.00k
              • Gianluca Ferrero (56yo)

                Chairman of Board of Statutory Auditors

                • Tenure: 5.7yrs
                • Compensation: €22.10k
              • Giampiero Massolo (65yo)

                Chairman

                • Federica Seganti (53yo)

                  Independent Director

                  • Tenure: 0.8yrs
                • Barbara Alemanni (55yo)

                  Independent Director

                  • Tenure: 0.8yrs
                • Luca Errico (53yo)

                  Independent Director

                  • Tenure: 0.8yrs

                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: €1.536b
                • 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 Equipment, Systems and Services. The Shipbuilding segment designs and constructs cruise ships; ferries, including cruise, Ro-Pax, and due fuel ferries; naval vessels, such as aircraft carriers, submarines, destroyers, frigates, corvettes, patrol vessels, amphibious and logistic support ships, multirole and research vessels, special vessels, and submarines; and mega yachts. The Offshore segment designs and constructs offshore support vessels, expedition cruise vessels, specialized ships, and vessels for offshore wind farms and open ocean aquaculture, as well as other products in the field of drill ships and semi-submersible drilling rigs. This segment also provides electrical systems, including engineering, manufacturing, installation, integration testing, and commissioning services. The Equipment, Systems and Services segment provides stabilization, propulsion, and positioning and power generation systems; ship automation systems, steam turbines, and ship accommodation systems; diesel engines, entertainment systems, and steel structures; cabins and public areas; and electric, electronic, and electromechanical integrated systems. This segment also offers ship repairs, refitting, refurbishment, conversions, and product lifecycle management services, as well as after-sales support services. In addition, the company is involved in the dry-dock management; project management; accommodation installation; and pipe installation. Further, the company provides electrical parts, technical and logistics engineering services, and ship interiors; offers charters boats and barges; and builds aluminum ships. Fincantieri S.p.A. primarily serves ship owners and the defense sector worldwide. The company was founded in 1959 and is headquartered in Trieste, Italy. Fincantieri S.p.A. is a subsidiary of Fintecna S.p.A. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/20 22:11
                End of Day Share Price2020/01/20 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.