Finning International Inc.
Finning International Inc. Fundamental Analysis
Finning International Inc. (FINGF) shows moderate financial fundamentals with a PE ratio of 17.12, profit margin of 6.00%, and ROE of 24.05%. The company generates $11.0B in annual revenue with moderate year-over-year growth of 6.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FINGF's fundamental strength across five key dimensions:
Efficiency Score
WeakFINGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFINGF trades at attractive valuation levels.
Growth Score
ModerateFINGF shows steady but slowing expansion.
Financial Health Score
ExcellentFINGF maintains a strong and stable balance sheet.
Profitability Score
ModerateFINGF maintains healthy but balanced margins.
Key Financial Metrics
Is FINGF Expensive or Cheap?
P/E Ratio
FINGF trades at 17.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FINGF's PEG of -4.79 indicates potential undervaluation.
Price to Book
The market values Finning International Inc. at 4.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.95 times EBITDA. This is generally considered low.
How Well Does FINGF Make Money?
Net Profit Margin
For every $100 in sales, Finning International Inc. keeps $6.00 as profit after all expenses.
Operating Margin
Core operations generate 7.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.05 in profit for every $100 of shareholder equity.
ROA
Finning International Inc. generates $8.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Finning International Inc. generates limited operating cash flow of $691.84M, signaling weaker underlying cash strength.
Free Cash Flow
Finning International Inc. produces free cash flow of $482.68M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.67 in free cash annually.
FCF Yield
FINGF converts 4.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How FINGF Stacks Against Its Sector Peers
| Metric | FINGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.12 | 25.96 | Better (Cheaper) |
| ROE | 24.05% | 1263.00% | Weak |
| Net Margin | 6.00% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.83 | 0.79 | Neutral |
| Current Ratio | 1.67 | 10.05 | Neutral |
| ROA | 8.44% | -1497918.00% (disorted) | Weak |
FINGF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Finning International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.81%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
144.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
319.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth