Finning International, Inc. (FTT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ADENTRA, Inc.

Gibson Energy, Inc.

Wajax Corp.

Russel Metals, Inc.

Toromont Industries Ltd.

Finning International, Inc.

Taiga Building Products Ltd.

Parkland Corp.

Tidewater Midstream And Infrastructure Ltd.

Superior Plus Corp.

First Hydrogen Corp.

Why is Finning International, Inc. ?

High Management Efficiency with a high ROCE of 16.14%

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CAD 445 MM
INTEREST(Q) At CAD 35 MM has Grown at 20.69%
RAW MATERIAL COST(Y) Grown by 10.78% (YoY)

With ROE of 18.51%, it has a attractive valuation with a 4.31 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 64.51%, its profits have risen by 1.9% ; the PEG ratio of the company is 4.2

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 64.51% in the last 1 year, much higher than market (S&P/TSX 60) returns of 30.16%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Finning International, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Finning International, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Finning International, Inc.

54.91%

11.08

40.73%

S&P/TSX 60

20.36%

2.51

12.02%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.29%

EBIT Growth (5y)

20.91%

EBIT to Interest (avg)

6.55

Debt to EBITDA (avg)

1.72

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

2.06

Tax Ratio

25.42%

Dividend Payout Ratio

31.12%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.61%

ROE (avg)

17.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.31

EV to EBIT

17.07

EV to EBITDA

11.69

EV to Capital Employed

2.97

EV to Sales

1.35

PEG Ratio

4.17

Dividend Yield

ROCE (Latest)

17.42%

ROE (Latest)

18.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 6.47

NET SALES(Q)

Highest at CAD 3,130 MM

OPERATING PROFIT(Q)

Highest at CAD 341 MM

PRE-TAX PROFIT(Q)

Highest at CAD 213 MM

NET PROFIT(Q)

Highest at CAD 160 MM

EPS(Q)

Highest at CAD 1.22

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 445 MM

INTEREST(Q)

At CAD 35 MM has Grown at 20.69%

RAW MATERIAL COST(Y)

Grown by 10.78% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.64 times

OPERATING PROFIT MARGIN(Q)

Lowest at 10.89 %

Here's what is working for Finning International, Inc.

Dividend per share

Highest at CAD 6.47 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 3,130 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 341 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 213 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 160 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Here's what is not working for Finning International, Inc.

Interest

At CAD 35 MM has Grown at 20.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 445 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Operating Profit Margin

Lowest at 10.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 10.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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