TSE:FTT

Finning Int (FTT.TO)

105.25
-2.26 (2.10%)
as of Jun 4, 2026, 2:46:24 pm Market Open.
235 watching
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Investor Insights
star iconJun 4, 2026, 12:00 am

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

Finning International (FTT-T) is recognized for its distribution of Caterpillar products and has enjoyed a significant price increase, recently moving past its fair market value. While some experts see potential in this stock, noting the correlation with copper markets and its attractive chart formations, concerns about holding prices above $78 and the potential for a correction loom. The equipment dealer sector is considered favorable due to its resilience against inflation and alignment with global growth, suggesting a buy approach at lower levels. However, with uncertainties in Canadian infrastructure and energy sectors, some analysts advise caution, preferring Caterpillar directly. The current phase in the market cycle could favor industrials, providing a broader bullish sentiment for certain stocks in this category.

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Consensus
Caution
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Valuation
Overvalued
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Caterpillar,CAT
DON'T BUY
Be cautious. Recently we've had a bounce in value cyclicals that we've endured a temporary slowdown and now we'll see growth ahead. He disagrees. These value stocks won't do better--we're near the end of the cycle and capital projects will slow down. Look at Caterpillar, down a third from its peak 18 months ago. The writing's on the wall for this sector--slowing down. You can hold onto a portion of this.
DON'T BUY
A big distributor of Caterpillar tractors so it’s a heavy equipment distribution company around the world. The backlog has dropped off. The market is anticipating something worse. If the economic outlook is positive, one of the stocks that will benefit. Especially from the conclusion of the tariff wars. He sees a tough period coming due to doubtful future sales.
DON'T BUY
A poor buy and hold stock. In an almost 10 year range, it’s been quite range-bound. It could go up to $28 quite quickly in the near term. It’s not a high end growth stock but a cyclical stock.
COMMENT
The interest cut today has thrown a bit of a lifeline to cyclicals like this (and delayed a recession for a little longer). Stocks like this can improve a bit, but only for a short time and until a downturn hits. It comes down to your risk tolerance and your outlook. Also, manufacturing is in a correction.
SELL ON STRENGTH

Our version of Caterpillar. If global growth continues to slow, the environment for Finning will be difficult. They have a 6-9-month window now. If Trump wins in 2020, he would take pot shots at China which will lead to a global recession that will really fit Finning. If this pops in the coming months, sell it.

PAST TOP PICK
(A Top Pick Sep 28/18, Down 24%) At the time everything looked positive. Now, the macro deteriorated with the China trade war, and Federal Reserve interest rate changes. They just beat last quarter. They’re currently growing at 16 times, and trading at 12 times, so it’s a good proposition.
COMMENT
They had some recent improvements in equipment sales. They need a catalyst for people to be interested in this stock. Overall he thinks it is well run and they should do all right. They need the resource market to be doing well.
PAST TOP PICK
(A Top Pick Sep 28/18, Down 27%) Still likes it. They just beat their quarter by 29%. They can grow with their margins, improving by cost-cutting. Models 16% EPS growth at 12.2x earnings. Very cheap. A solid balance sheet. Will be good over the long term.
PAST TOP PICK
(A Top Pick Jul 26/18, Down 29%) Good stocks will move like this on sentiment. The macro's gotten worse. One-time headwinds. Levered to gold miners, and better days are ahead for gold. Really cheap. Being paid to wait. You still want to have it in your portfolio.
DON'T BUY
You are dependent on a lot of mining and infrastructure for oil and gas. He does not see any compelling reason to jump into it at these levels.
WEAK BUY
This is a difficult one because the numbers have not been great over the last couple of quarters. It's close to the bottom but not a table pounding buy. They had a problem with their ERP system.
WATCH
Lower lows, lower highs. Support at $22.50. What's concerning is the descending triangle pressuring the support below. Wouldn't look to play it yet. If it breaks, we'll see lower lows ahead. Just exited period of seasonal strength, and it couldn't produce gains, so that tells you something.
PAST TOP PICK

(A Top Pick May 16/18, Down 26%) Disappointing, because of overblown fears of a recession that he doesn't expect. This is very cyclical demand for Caterpillar equipment. They reported earnings today and they were in line with subdued expectations. Sales were better than expected and they have partially solved a distribution problem in South America.

TOP PICK
Also a past top pick today. Management has succeeded in shifting its revenue mix from 32% new product and service revenues to more than 50% today to reduce cyclicality. The stock has been a victim of overblown recession fears, and problems in their South American unit, though today they reported that as fixed. They boast 13% ROE and 6% dividend growth rate. (Analysts’ price target is $28.43)
DON'T BUY
A laggard. He bought it over the winter, pulled back, so he sold it. FTT is trying to find a floor. Compare this to peer, Toromont, which is like day and night. Toromont has broken to new highs.
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