TSE:FTT

Finning Int (FTT.TO)

93.79
+0.98 (1.06%)
as of Sep 11, 2026, 8:00:01 pm Market Open.
234 watching
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Investor Insights
star iconSep 12, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Finning International, recognized as the largest Caterpillar dealer, has seen a solid performance with its stock price moving from $45 to higher levels. However, concerns have arisen as it currently trades at a high valuation amidst cyclical uncertainties in the market, particularly with infrastructure and energy in Canada. While some experts remain bullish on industrials, citing a favorable environment in phase 2 of the business cycle, there are warnings that the stock may be approaching its fair market value, and a correction could be imminent if it doesn't hold above $78. The prevailing sentiment indicates that while the company is poised for potential growth in a favorable economic period, a cautious approach is advised, suggesting buying at lower levels. Overall, the sentiment around Finning International is mixed, with an inclination towards a cautious outlook rather than aggressive investment at current rates.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
CAT, CAT
BUY
(Market Call Minute.) You could own both Caterpillar (CAT-N), the manufacturer and Finning (FTT-T), the distributor.
PAST TOP PICK
(A Top Pick Aug 8/07. Down 13%.) Infrastructure and agriculture. Still likes.
TOP PICK
Caterpillar equipment in Western Canada is benefiting from winter Olympics and will ultimately benefit from pipelines going north and tar sands in Alberta. Tremendous business in South America where most of the world’s new mines are being built. Big recurring revenue from service and parts.
PAST TOP PICK
(A Top Pick April 5/07. Up 8%.) Operationally, things were great, but $0.10 of earnings got shaved because of currency swings. $1.7 billion backlog. Expecting a lot more upside. Great fundamentals.
TOP PICK
A large amount of their revenue comes from service maintenance and parts. In other words, they sell the equipment and then get to maintain it for the next 10 years. They make better margins on this than they do on selling the huge earthmover. Tremendous opportunity because of Winter Olympics, pipelines and mining in South America where they have the franchise.
COMMENT
Well managed and in an area that will have good secular growth, providing equipment to the mining business. In the short term, he doesn't see much earnings growth but okay for the long-term. Good over the next 5, 10, 15 years. Doesn't see a lot of excitement.
PAST TOP PICK
(A Top Pick Apr 23/07. Up 6.7%.) A great play on resources. Still a Buy.
TOP PICK
Can take advantage of any infrastructure going forward. Chart shows a potential reverse head and shoulder pattern. If it gets above the line ($29.50?) it's off to the races. The company will have very strong 1st quarter results and very strong earnings for 2008. Seasonality strength seems to be between November and the end of May.
DON'T BUY
Global infrastructure play. Have really liked this company in the past. Highly economically sensitive. Have long-term contracts but their backlog is a little lower than normal.
TOP PICK
Whistler Olympics has a huge amount of development still going on. Oil sands machinery continues to need maintenance and parts. Perhaps the Mackenzie Valley pipeline will get built some time. New mines are being opened in South America. They make money on service and support.
DON'T BUY
Was Short this stock a few weeks ago but has now covered it. Their last quarter was pretty much a disaster. Has a premium valuation at 17X forward earnings and is not deserving of it. Would be a steal at 14X or 15X forward earnings.
HOLD
Good growth outlook. Wait a little.
COMMENT
Caterpillar equipment. Do well when there is a lot of capital spending and infrastructure building. Their UK subsidiary had a bit of a problem but seems to have straightened out. If you own, consider trimming your holdings in case of a slowdown.
BUY
Has finally hit its stride. Last 2 quarters have been very good. Backlog continues to be very strong. The only laggard has been the UK operations but management has been working hard on fixing it. Earnings growth continues to be very, very good. Trades at 15 X next year's numbers, which is a very reasonable multiple.
TOP PICK
Just blew the doors off with its earnings, even after a disappointing period in the UK. Have a backlog of $1.8 million. A leveraged play on increasing demand from emerging markets.
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