TechnipFMC plc (FTI) 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

USA Compression Partners LP

TechnipFMC plc

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Cactus, Inc.

NOV, Inc.

RPC, Inc.

Liberty Energy, Inc.

Helix Energy Solutions Group, Inc.

ProFrac Holding Corp.

Why is TechnipFMC plc ?

Poor Management Efficiency with a low ROCE of 14.56%

The company has been able to generate a Return on Capital Employed (avg) of 14.56% signifying low profitability per unit of total capital (equity and debt)

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.96 times

Poor long term growth as Net Sales has grown by an annual rate of -6.61% and Operating profit at 4.42% over the last 5 years

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,642.7 MM
ROCE(HY) Highest at 29.27%
INTEREST COVERAGE RATIO(Q) Highest at 2,322.97

With ROCE of 36.09%, it has a very expensive valuation with a 4.59 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 50.08%, its profits have risen by 227.8% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 50.08% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to TechnipFMC plc should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

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

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

Is TechnipFMC plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TechnipFMC plc

110.26%

2.13

40.63%

S&P 500

24.32%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.41%

EBIT Growth (5y)

15.44%

EBIT to Interest (avg)

4.32

Debt to EBITDA (avg)

0.96

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

2.11

Tax Ratio

12.75%

Dividend Payout Ratio

8.71%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.56%

ROE (avg)

9.79%

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

8.47

EV to EBIT

20.51

EV to EBITDA

15.76

EV to Capital Employed

9.57

EV to Sales

2.82

PEG Ratio

1.69

Dividend Yield

0.31%

ROCE (Latest)

46.64%

ROE (Latest)

28.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,655.4 MM

ROCE(HY)

Highest at 33.65%

DEBT-EQUITY RATIO (HY)

Lowest at 10.21 %

RAW MATERIAL COST(Y)

Fallen by -17.31% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.81 times

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for TechnipFMC plc

Operating Cash Flow

Highest at USD 1,655.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 10.21 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -17.31% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

At USD 103.6 MM has Grown at 34.72%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)