Latest news with #FinningInternationalInc
Yahoo
a day ago
- Business
- Yahoo
Finning International's (TSE:FTT) 27% CAGR outpaced the company's earnings growth over the same five-year period
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. Long term Finning International Inc. (TSE:FTT) shareholders would be well aware of this, since the stock is up 186% in five years. On top of that, the share price is up 37% in about a quarter. Since it's been a strong week for Finning International shareholders, let's have a look at trend of the longer term fundamentals. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, Finning International managed to grow its earnings per share at 18% a year. This EPS growth is lower than the 23% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Finning International's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Finning International, it has a TSR of 230% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. We're pleased to report that Finning International shareholders have received a total shareholder return of 42% over one year. That's including the dividend. That's better than the annualised return of 27% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Finning International you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
30-05-2025
- Business
- Yahoo
Finning International Inc.'s (TSE:FTT) largest shareholders are retail investors with 55% ownership, institutions own 45%
Significant control over Finning International by retail investors implies that the general public has more power to influence management and governance-related decisions 42% of the business is held by the top 25 shareholders Recent sales by insiders This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls Finning International Inc. (TSE:FTT), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And institutions on the other hand have a 45% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. In the chart below, we zoom in on the different ownership groups of Finning International. View our latest analysis for Finning International Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Finning International does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Finning International's earnings history below. Of course, the future is what really matters. Hedge funds don't have many shares in Finning International. Fidelity International Ltd is currently the largest shareholder, with 9.1% of shares outstanding. FMR LLC is the second largest shareholder owning 5.2% of common stock, and The Vanguard Group, Inc. holds about 4.2% of the company stock. On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Finning International Inc. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own CA$13m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. The general public, mostly comprising of individual investors, collectively holds 55% of Finning International shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Finning International has 2 warning signs we think you should be aware of. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Finning Reports on Voting Results from its Annual Meeting of Shareholders
VANCOUVER, British Columbia, May 14, 2025 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) ('Finning' or the 'Company') announces the voting results from its Annual Meeting of Shareholders held on Tuesday, May 13, 2025 in Vancouver, British Columbia. A total of 97,159,486 common shares were represented at the Meeting, representing 72.07% of the Company's outstanding shares as at the record date. Shareholders voted in favor of all items of business before the Meeting, including the appointment of auditors with authorization of the directors to fix the auditors' remuneration, acceptance of the Company's approach to executive compensation, and the election of each of the directors. Detailed results of the ballot vote for the election of directors are provided below: Director Nominee Votes for Percent Votes Against Percent Mary Lou Kelley 95,473,788 99.03 930,728 0.97 Andrés Kuhlmann 96,358,839 99.95 45,677 0.05 Kevin Parkes 96,302,994 99.89 101,522 0.11 Michael C. Putnam 96,365,315 99.96 39,201 0.04 John R. Rhind 96,363,520 99.96 40,996 0.04 Charles F. Ruigrok 94,720,220 98.25 1,684,295 1.75 Edward R. Seraphim 95,908,731 99.49 495,785 0.51 Manjit K. Sharma 96,141,669 99.73 262,846 0.27 Nancy G. Tower 95,205,012 98.76 1,199,503 1.24 About FinningFinning International is the world's largest Caterpillar dealer, delivering unrivalled service to customers for over 90 years. Headquartered in Surrey, British Columbia, we provide Caterpillar equipment, parts, services, and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland. Contact Information:FinningIR@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Are Investors Undervaluing Finning International Inc. (TSE:FTT) By 43%?
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Does the May share price for Finning International Inc. ( TSE:FTT ) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple! Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.4%. We discount the terminal cash flows to today's value at a cost of equity of 7.9%. Terminal Value (TV)= FCF 2034 × (1 + g) ÷ (r – g) = CA$571m× (1 + 2.4%) ÷ (7.9%– 2.4%) = CA$11b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$11b÷ ( 1 + 7.9%)10= CA$5.0b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$9.2b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of CA$39.0, the company appears quite undervalued at a 43% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. TSX:FTT Discounted Cash Flow May 7th 2025 The Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Finning International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.272. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Finning International SWOT Analysis for Finning International Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Trade Distributors market. Opportunity Annual earnings are forecast to grow for the next 2 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the Canadian market. Looking Ahead: Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Finning International, there are three further elements you should explore: Risks: For example, we've discovered 1 warning sign for Finning International that you should be aware of before investing here. Future Earnings: How does FTT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Canadian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
