NYSE:FTI

Stock Analysis Report

Executive Summary

TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses.

Rewards

Trading at 43.6% below its fair value

Earnings are forecast to grow 19.87% per year

Risk Analysis

Dividend of 2.48% is not well covered by earnings

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Oceaneering International

NYSE:OII

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.9%

FTI

-5.2%

US Energy Services

-0.09%

US Market


1 Year Return

-20.9%

FTI

-23.6%

US Energy Services

23.9%

US Market

Return vs Industry: FTI matched the US Energy Services industry which returned -21.5% over the past year.

Return vs Market: FTI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FTIIndustryMarket
7 Day-6.9%-5.2%-0.09%
30 Day-12.8%-10.5%3.1%
90 Day-13.7%2.8%10.4%
1 Year-19.0%-20.9%-21.2%-23.6%26.6%23.9%
3 Year-45.3%-47.8%-54.7%-60.3%50.9%41.2%
5 Yearn/a-52.0%-59.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TechnipFMC undervalued compared to its fair value and its price relative to the market?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTI ($18.43) is trading below our estimate of fair value ($32.68)

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


Price To Earnings Ratio

PE vs Industry: FTI is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FTI is overvalued based on its PB Ratio (0.9x) compared to the US Energy Services industry average (0.7x).


Next Steps

Future Growth

How is TechnipFMC forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: FTI's revenue (7.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FTI's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FTI's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has TechnipFMC performed over the past 5 years?

-71.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTI is currently unprofitable.

Growing Profit Margin: FTI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FTI is unprofitable, and losses have increased over the past 5 years at a rate of -71.8% per year.

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

Earnings vs Industry: FTI is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-23.5%).


Return on Equity

High ROE: FTI has a negative Return on Equity (-21.93%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TechnipFMC's financial position?


Financial Position Analysis

Short Term Liabilities: FTI's short term assets ($11.0B) exceed its short term liabilities ($9.4B).

Long Term Liabilities: FTI's short term assets ($11.0B) exceed its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: FTI's debt to equity ratio (38.5%) is considered satisfactory.

Reducing Debt: FTI's debt to equity ratio has reduced from 60.1% to 38.5% over the past 5 years.

Debt Coverage: FTI's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: FTI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: FTI's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage4.0%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: FTI's dividend (2.48%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FTI's dividend (2.48%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: FTI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: FTI's dividends in 3 years are forecast to be well covered by earnings (29.6% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Doug Pferdehirt (55yo)

3yrs

Tenure

US$13,403,500

Compensation

Mr. Douglas J. Pferdehirt, also known as Doug, has been Chief Executive Officer of TechnipFMC plc since 2017 and also has been its Chairman of the Board since May 1, 2019. Mr. Pferdehirt has been the Chief ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD13.40M) is above average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

3.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FTI's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: FTI's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: FTI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$302,15423 Dec 19
Maryann Mannen
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares14,500
Max PriceUS$20.84
BuyUS$58,47025 Nov 19
Olivier Piou
EntityIndividual
Shares3,000
Max PriceUS$19.49

Ownership Breakdown

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


Management Team

  • Doug Pferdehirt (55yo)

    Chairman of the Board & CEO

    • Tenure: 3yrs
    • Compensation: US$13.40m
  • Bill Morrice (54yo)

    Managing Director of UK Operating Centre

    • Tenure: 8.7yrs
  • Mark Scott (65yo)

    Executive Vice President of Quality

    • Krisztina Dorogházi (47yo)

      Senior VP

      • Tenure: 1.5yrs
    • Maryann Mannen (56yo)

      Executive VP & CFO

      • Tenure: 3yrs
      • Compensation: US$5.34m
    • Nello Uccelletti (65yo)

      President & Advisor to the CEO

      • Tenure: 1yrs
    • Dianne Ralston (52yo)

      Executive VP

      • Tenure: 3yrs
      • Compensation: US$3.87m
    • Justin Rounce (52yo)

      Executive VP & Chief Technology Officer

      • Tenure: 2yrs
      • Compensation: US$3.78m
    • Matt Seinsheimer

      Vice President of Investor Relations

      • Delphine Nayral

        Director of Public Relations


        Board Members

        • John C. O'Leary (63yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$287.48k
        • Jim Ringler (74yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$309.98k
        • Pascal Colombani (73yo)

          Lead Independent Director

          • Tenure: 0.7yrs
          • Compensation: US$299.98k
        • Peter Mellbye (70yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$309.98k
        • Marie-Ange Debon (54yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$307.48k
        • Didier Houssin (62yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$299.98k
        • Doug Pferdehirt (55yo)

          Chairman of the Board & CEO

          • Tenure: 3yrs
          • Compensation: US$13.40m
        • Eleazar de Carvalho Filho (62yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$294.98k
        • Joseph Rinaldi (61yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$299.98k
        • Arnaud Caudoux (49yo)

          Independent Director

          • Tenure: 3yrs

        Company Information

        TechnipFMC plc's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: TechnipFMC plc
        • Ticker: FTI
        • Exchange: NYSE
        • Founded: 1958
        • Industry: Oil and Gas Equipment and Services
        • Sector: Energy
        • Market Cap: US$8.239b
        • Shares outstanding: 447.06m
        • Website: https://www.technipfmc.com

        Number of Employees


        Location

        • TechnipFMC plc
        • One St. Paul’s Churchyard
        • London
        • Greater London
        • EC4M 8AP
        • United Kingdom

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        FTIENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 2017
        FTINYSE (New York Stock Exchange)YesOrdinary SharesUSUSDJan 2017
        0RMVLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2017
        FTISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 2017
        FTIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2017
        1T1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2017
        FTIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 2017

        Biography

        TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses. It operates through three segments: Subsea, Onshore/Offshore, and Surface Technologies. The Subsea segment manufactures and designs products and systems; performs engineering, procurement, and project management; and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas. The Onshore/Offshore segment designs and builds onshore facilities related to the production, treatment, and transportation of oil and gas; and designs, manufactures, and installs fixed and floating platforms for the production and processing of oil and gas reserves. The Surface Technologies segment designs and manufactures systems, as well as provides services used by oil and gas companies involved in the land and shallow water exploration and production of crude oil and natural gas. This segment also designs, manufactures, and supplies technologically advanced high pressure valves and fittings for oilfield service companies; and provides flowback and well testing services for exploration and production companies. The company operates in Russia, Brazil, the United States, Angola, Norway, Brazil, Australia, the United Kingdom, and internationally. The company was formerly known as Technip SA and changed its name to TechnipFMC plc in January 2017. TechnipFMC plc was founded in 1958 and is headquartered in London, the United Kingdom. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/24 00:46
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        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.