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
0
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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Caterpillar,CAT
BUY ON WEAKNESS
Hold it for two years? It's a deeply cyclical stock that hasn't been doing well. He wouldn't hold it for two years, but rather buy it now as a trading opportunity.
BUY
A cyclical name. Exposed to Western Canada. They reported today and it was sloppy in Latin America. Good backlog in Canada and great balance sheet. It trades at a reasonable multiple considering its growth rate. If we don't get Line 3 in Canada it wont be a great year for 2019. But he sees this as a when more than an if. Good long term holding
COMMENT
Exposed to western Canadian oil and South American copper. He's more optimistic about the oil sector than copper; he expects the oil price will recover. But getting Canadian oil into US markets will remain a long-term issue without an instant fix. FTT is good name to own with good managers. Don't see a lot of upside short-term though.
HOLD
The multiples are near 11 times earnings -- quite cheap. Management has gotten into good higher margin business in the energy space. On all metrics it looks very enticing. They had added to their position around $25.50. He met with management team recently and believes they will be able to continue to expand margins into the future.
WATCH
They have a Caterpillar franchise out west and are in Latin America. They have a facility where they remanufacture Caterpillar parts. If you think there are legs left in the mining cycle you could add to it.
TOP PICK

End markets are in early stages of recovery, robust backlog. Really nice growth. Really good balance sheet. ROC is 17% for 2019. Good Q2 performance. Pretty cheap. Tailwinds from the macro story and efficiency gains. Decent dividend. Bluer chip name. Will do well over the next 1-2 years. Yield is 2.5%. (Analysts’ price target is $39.17.)

TOP PICK

Q2 they checked all boxes. A story of improved macro tailwinds combined with increased margin efficiencies and cost cutting. They model earnings growth of 28%. Trading at 153 times 2019. (Analysts’ price target is $38.83)

BUY

Chile and Western Canada are huge markets. They are starting to consume cash for working capital but they are a good business.

PAST TOP PICK

(A Top Pick Aug 30/17, Up 14%) He saw the stirrings in capital expenditures in mining. Their product is made with steel and is in the news regarding trade wars. These are indispensible machines in the mining industry, however.

TOP PICK

It's the world's largest Caterpillar equipment dealer and they also do after-market service and support, which reduces the cyclicality of this business. It boasts 15% ROE and trades at 17x earnings. (Analysts' price target $38.83)

HOLD

He fills the time to buy this company has passed. He had owned three years ago and sentiment is towards holding. Management has engineered a good turnaround. Pricing is improving for new equipment and he likes the model. He still owns a small holding. Infrastructure spending in the US will have to be seen.

COMMENT

Has a lot of respect for how management has turned the business around over the past number of years. Now there is more good news being priced into the business, and it is clear that it is past the worst. Now that this business bounces off the bottom, there are certain things that happen. Incremental margins are better, but free cash flow conversions actually are worse, because they now have to invest in net working capital to grow the business. He likes the company, and over the years they can do just fine, but it is not the risk/return that it was.

TOP PICK

The world’s largest Caterpillar dealer. Their largest customers are public works. Mining is their 2nd largest. Mining industry capital spend has been in a nuclear winter since 2012, and is just coming out of that. Dividend yield of 2.8% per year and they’ve grown their dividend 8% per year (Analysts’ price target is $32.)

WATCH

It was down trending, formed a really nice base and now is braking out. It is a cup and handle formation. It is struggling to break out.

BUY

(Market Call Minute.) Earnings have troughed here, and the market is telling you those earnings have troughed.

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