
TSE:FTT
This summary was created by AI, based on 5 opinions in the last 12 months.
Finning Int (FTT-T) is recognized as the largest Caterpillar dealer, with a strong historical performance but currently facing valuation concerns from various analysts. Experts have highlighted its cyclical nature, expressing uncertainty about whether the market is anticipating the end of the cycle or merely reacting to a temporary fluctuation. Although there is a bullish outlook on industrials, which may favor the stock in the long term, several analysts suggest that it might be trading above its fair market value. Opinions are mixed; while some view it as a stable play in the equipment-dealing sector, the overall consensus leans towards caution, particularly with forecasted earnings trending flat. Observations about the Canadian market further complicate sentiment due to ongoing uncertainties in infrastructure and energy sectors.
This is a bet on an improving economy even with reduced revenue growth. Still have very strong margins expanding between 9%-10% between now and 2013. Trading at around 6.2X EV to EBITDA compared to their peers at around 8X. This stock has pretty much moved lockstep with copper so if you think China is going to come back a little bit and that US is getting more constructive and that copper is going to do a little bit better, this will probably follow as well.
Good business and all of the markets they operate in are performing well and have growth opportunities. Bug Finning has had a number of challenges and it has nothing to do with CAT equipment, but more to do with their operations. Revenues are growing and backlog is up 6% so it is doing well but investors are focusing on the cost line. If they can get them under control then investors will reward them with north of $30 for the stock price. Prefers to Caterpillar.
Not us as cheap as it was a few months ago but still trading below its five-year average. Revenue growth is slowing but will still do about 5% revenue growth in 2013, 7% for 2014. When you combine that with expanding margins for the next 3 years, you get a really big number, a boost in their EPS by about 65%. If you believe in the global growth and China story, it’s a good one to be buying. Buy on a pull back.