TechnipFMC plc
TechnipFMC plc Fundamental Analysis
TechnipFMC plc (FTI) shows moderate financial fundamentals with a PE ratio of 27.56, profit margin of 9.70%, and ROE of 29.62%. The company generates $9.7B in annual revenue with strong year-over-year growth of 16.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 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 FTI's fundamental strength across five key dimensions:
Efficiency Score
WeakFTI struggles to generate sufficient returns from assets.
Valuation Score
ModerateFTI shows balanced valuation metrics.
Growth Score
ExcellentFTI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFTI maintains a strong and stable balance sheet.
Profitability Score
ModerateFTI maintains healthy but balanced margins.
Key Financial Metrics
Is FTI Expensive or Cheap?
P/E Ratio
FTI trades at 27.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FTI's PEG of -21.40 indicates potential undervaluation.
Price to Book
The market values TechnipFMC plc at 7.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.93 times EBITDA. This signals the market has high growth expectations.
How Well Does FTI Make Money?
Net Profit Margin
For every $100 in sales, TechnipFMC plc keeps $9.70 as profit after all expenses.
Operating Margin
Core operations generate 9.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.62 in profit for every $100 of shareholder equity.
ROA
TechnipFMC plc generates $9.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TechnipFMC plc produces operating cash flow of $1.73B, showing steady but balanced cash generation.
Free Cash Flow
TechnipFMC plc generates strong free cash flow of $1.42B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.45 in free cash annually.
FCF Yield
FTI converts 5.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-21.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How FTI Stacks Against Its Sector Peers
| Metric | FTI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.56 | 20.10 | Worse (Expensive) |
| ROE | 29.62% | 1093.00% | Weak |
| Net Margin | 9.70% | -30344.00% (disorted) | Weak |
| Debt/Equity | 0.60 | -0.69 (disorted) | Distorted |
| Current Ratio | 1.13 | 4.79 | Neutral |
| ROA | 9.53% | -1.00% (disorted) | Weak |
FTI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TechnipFMC plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.75%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
137.59%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
18.25%
Industry Style: Cyclical, Value, Commodity
High Growth