Finning International Inc
TSX:FTT
Intrinsic Value
Finning International, Inc. engages in the sale, service, and renting out heavy equipment, engines, and related products. [ Read More ]
The intrinsic value of one
FTT
stock under the Base Case scenario is
52.92
CAD.
Compared to the current market price of 42.23 CAD,
Finning International Inc
is
Undervalued by 20%.
FTT could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Finning International Inc's market capitalization is 6.1B CAD.
FTT stock price is 42.23 CAD.
FTT stock price (42.23 CAD) is 20% less than its Intrinsic Value (52.92 CAD).
FTT stock price (42.23 CAD) is 31% less than its Relative Value (61.09 CAD). Open Relative Valuation
FTT has upside potential of 14% compared to the average analyst price target.
Open Wall St Estimates
FTT has positive three-year average ROIC (Return on Invested Capital): 10%. The company is efficient at using invested capital to generate operating income.
FTT's Revenue is forecast to grow at a rate of 0% per year over the next 3 years.
FTT's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 11%.
FTT's D/E (Debt to Equity) is very low and is equal to 0.96.
FTT has positive Operating Income for the last twelve months.
FTT's Revenue has grown by 13% over the past 12 months.
FTT has positive Free Cash Flow for the last twelve months.
FTT's ROIC (Return on Invested Capital) has increased in the last 3 years from 5% to 11%.
FTT has positive Net Income for the last twelve months.
FTT's ROE (Return on Equity) for the past 12 months is positive and is equal to 21%.
FTT's short-term assets (5B CAD) exceed its short-term liabilties (3B CAD).
FTT's ROE (Return on Equity) has significantly increased in the last 3 years from 11% to 21%.
FTT's long-term assets (8B CAD) exceed its long-term liabilties (5B CAD).
FTT has positive Gross Profit for the last twelve months.
FTT has positive three-year average ROE (Return on Equity): 18%. The company is efficient at transforming stockholders' equity into net income.
FTT's Revenue has been growing by 19% per year for the last 3 years.
FTT's Altman Z-Score is very high and is equal to 3.17.
FTT has positive Net Debt. This means that the company has more debt (2B CAD) than cash and short-term investments (241m CAD).
FTT generates enough operating income (933m CAD) to cover interest payments on its debt (165m CAD).
Valuation Backtest
Finning International Inc
Run backtest to discover the historical profit from buying and selling
FTT
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Finning International Inc
Balance Sheet Decomposition
Finning International Inc
| Current Assets | 4.9B |
| Cash & Short-Term Investments | 241m |
| Receivables | 1.7B |
| Other Current Assets | 3B |
| Non-Current Assets | 2.6B |
| Long-Term Investments | 87m |
| PP&E | 1.6B |
| Intangibles | 638m |
| Other Non-Current Assets | 318m |
| Current Liabilities | 3.5B |
| Accounts Payable | 1.3B |
| Short-Term Debt | 1.2B |
| Other Current Liabilities | 931m |
| Non-Current Liabilities | 1.6B |
| Long-Term Debt | 1.2B |
| Other Non-Current Liabilities | 374m |
Earnings Waterfall
Finning International Inc
|
Revenue
|
10.5B
CAD
|
|
Cost of Revenue
|
-8B
CAD
|
|
Gross Profit
|
2.6B
CAD
|
|
Operating Expenses
|
-1.6B
CAD
|
|
Operating Income
|
933m
CAD
|
|
Other Expenses
|
-410m
CAD
|
|
Net Income
|
523m
CAD
|
Free Cash Flow Analysis
Finning International Inc
FTT Profitability Score
Profitability Due Diligence
Finning International Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
Score
Finning International Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
FTT Solvency Score
Solvency Due Diligence
Finning International Inc's solvency score is 44/100. The higher the solvency score, the more solvent the company is.
Score
Finning International Inc's solvency score is 44/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
FTT Price Targets Summary
Finning International Inc
According to Wall Street analysts, the average 1-year price target for
FTT
is 48.28 CAD
with a low forecast of 41.41 CAD and a high forecast of 55.65 CAD.
Shareholder Return
FTT Price
Finning International Inc
| Average Annual Return | 12.64% |
| Standard Deviation of Annual Returns | 5.75% |
| Max Drawdown | -55% |
| Market Capitalization | 6.1B CAD |
| Shares Outstanding | 144 007 263 |
| Percentage of Shares Shorted | 0.56% |
Company Profile
Finning International Inc
Country
Industry
Market Cap
Dividend Yield
Description
Finning International, Inc. engages in the sale, service, and renting out heavy equipment, engines, and related products. The company is headquartered in Vancouver, British Columbia. The firm sells, rents and provides parts and service for equipment and engines to the customers. The company operates in Western Canada, Chile, Argentina, Bolivia, United Kingdom and Ireland. The firm operates through four segments: Canadian operations, South American operations, UK & Ireland operations and Other. Canadian operations segment operates dealership territories in British Columbia, Alberta, Saskatchewan, the Yukon territory, the Northwest Territories, and a portion of Nunavut and mobile refueling services in the above-listed provinces in Canada and in Texas, United States. South American operations segment operates in Chile, Argentina, and Bolivia. UK & Ireland operations segment operates in England, Scotland, Wales, Northern Ireland, and the Republic of Ireland. Other segment operates corporate head office.
Contact
IPO
Employees
Officers
The intrinsic value of one
FTT
stock under the Base Case scenario is
52.92
CAD.
Compared to the current market price of 42.23 CAD,
Finning International Inc
is
Undervalued by 20%.
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