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Finning International Inc. (FTT-T) is the world's largest Caterpillar heavy equipment distributor with a strong track record of annual earnings growth. The company is trading at a relatively low valuation, and its cash reserves are growing while debt and shares are being bought back. Despite being a cyclical stock, FTT is showing promising signs of growth and profitability. However, there are concerns about its dependency on commodity prices and potential impact from demand fluctuations in the industry. Overall, FTT presents an interesting investment opportunity with a potential upside based on various expert opinions.
Industrials aren't too topical right now. Stock's been in a range for a couple of years, which is usually a positive sign. He'd be comfortable buying in the range, or if it spent more time above $36. Like tipping a Coke machine, sometimes it needs a couple of heaves to get it up through the price level.
50% of revenues are in western Canada, plus Chile and the UK. Higher commodity prices offer this some momentum and pushed FTT to new highs this year. But this is a cyclical name, so careful. Yesterday, CAT shares fell on shrinking demand, so that's a canary in the coalmine for FTT. Profits are decent and so is the PE. Take profits,
Still likes it. They executed very well. Still cheap and have pricing power. Trades at 11x vs. Caterpillar's 14%. Problem is growth is limited. Buy around $36.
Very strong business.
Recipient of high spending of Federal governments on infrastructure.
Raw material mining for EV transition will support business.
Excellent share price for long term investor.
A play on where the next bull market's going to be, and that's going to be cyclicals. A cheaper valuation amongst the group.
Beat last quarter guidance.
Great backlog of projects.
Current share price cheap.
Does not think industrial activity will slow too much.
Great name to get exposure to large section of the economy.
China re-opening a tailwind.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Gives good exposure to the industrial sector. The assumption would be based on higher inflation and higher commodity prices driving up the company’s sales. They have also managed past cycles well. Unlock Premium - Try 5i Free
Finning Int is a Canadian stock, trading under the symbol FTT-T on the Toronto Stock Exchange (FTT-CT). It is usually referred to as TSX:FTT or FTT-T
In the last year, 5 stock analysts published opinions about FTT-T. 4 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Finning Int.
Finning Int was recommended as a Top Pick by on . Read the latest stock experts ratings for Finning Int.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
5 stock analysts on Stockchase covered Finning Int In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Finning Int (FTT-T) stock closed at a price of $39.81.
With a five year average annual earnings growth of 23%, we reiterate FTT as a TOP PICK. Upcoming earnings will likely confirm continuation of this trend. It trades at 10x earnings, 2.3x book and supports a 22% ROE. We like that cash reserves are growing while debt and shares are bought back. The dividend is backed by a payout ratio under 30% of cash flow. We continue to recommend a stop at $34, looking to achieve $48 -- upside potential of 20%. Yield 2.4%
(Analysts’ price target is $48.22)