TechnipFMC (FTI) AI Stock Analysis

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TechnipFMC

(NYSE:FTI)

78Outperform

TechnipFMC exhibits strong financial performance, highlighted by substantial revenue growth, improved profitability, and efficient cash flow management. The positive sentiment from the recent earnings call, combined with a reasonable valuation, supports a solid stock score. However, potential overbought conditions in technical analysis and decreased total assets are areas to monitor.

Positive Factors

Revenue Growth

Subsea revenue came in above the midpoint of guidance, largely due to higher activity in the US Gulf and Africa.

Shareholder Returns

FTI repurchased shares during the quarter, with total shareholder returns including dividends reaching a significant amount.

Negative Factors

Investor Concerns

FTI's Subsea order outlook remains bullish despite investor concerns over sluggish offshore driller commentary.

Operational Risks

The Surface outlook seems to require a sharp increase from 1Q which may pose some risk.

TechnipFMC (FTI) vs. S&P 500 (SPY)

Market Cap

$10.17B

Dividend Yield0.83%

Average Volume (3M)6.03M

Price to Earnings (P/E)12.6

Beta (1Y)1.08

Revenue Growth16.23%

EPS Growth1403.29%

CountryUS

Employees21,693

SectorEnergy

Sector Strength52

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)1.92

Shares Outstanding420,571,560

10 Day Avg. Volume5,731,500

30 Day Avg. Volume6,026,243

Financial Highlights & Ratios

PEG Ratio0.00900

Price to Book (P/B)N/A

Price to Sales (P/S)1.36

Price to Cash Flow (P/CF)5.30

P/FCF Ratio5.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$37.11

Price Target Upside41.75% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering10

TechnipFMC Business Overview & Revenue Model

Company DescriptionTechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing, and supply chain; and product management services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop and deliver technical and commercial solutions to Carbon Capture and Storage projects. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.

How the Company Makes MoneyTechnipFMC generates revenue primarily through its three main business segments: Subsea, Surface Technologies, and New Energies. The Subsea segment is the largest contributor to revenue, providing integrated solutions and services such as subsea engineering, procurement, construction, and installation (EPCI). The Surface Technologies segment offers products and services for the exploration and production of oil and gas, including wellhead systems, flow metering products, and pressure control equipment. The New Energies segment focuses on renewable energy projects and technologies. The company also collaborates with major oil and gas companies through partnerships and joint ventures, which helps to secure long-term contracts and bolster its revenue stream.

TechnipFMC Financial Statement Overview

Summary

TechnipFMC has demonstrated robust financial performance with strong revenue growth and improved net profit margins. The balance sheet shows effective debt management and improved ROE, though the decrease in total assets may limit future growth. Strong cash flow generation further underscores the company's financial health.

Income Statement

Positive

TechnipFMC has shown strong revenue growth from 2022 to 2024, with a significant increase in total revenue from $6.7 billion to $9.1 billion, indicating a positive growth trajectory. The company also improved its net profit margin, achieving a positive net income of $842.9 million in 2024 after recovering from a loss in 2022. The EBIT margin improved substantially, reflecting increased operational efficiency. However, the absence of EBITDA data for 2024 limits the assessment of cash generation from operations.

Balance Sheet

Positive

The balance sheet reflects a healthy equity position with a stable equity ratio, as stockholders' equity remains strong relative to total assets. The debt-to-equity ratio improved significantly, demonstrating effective debt management and reduced leverage risk. The return on equity (ROE) has improved drastically, indicating enhanced profitability for shareholders. However, the total assets have decreased since 2019, which may limit future growth potential.

Cash Flow

Very Positive

TechnipFMC has demonstrated strong free cash flow growth from 2023 to 2024, with free cash flow increasing to $679.4 million. The operating cash flow to net income ratio is robust, reflecting efficient cash conversion from net income. The company has maintained positive free cash flow to net income ratio, indicating its ability to generate significant cash relative to its net earnings. These factors suggest strong cash flow management and operational efficiency.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.08B	7.82B	6.70B	6.40B	6.53B
	Gross Profit
1.72B	1.27B	197.30M	33.90M	694.80M
	EBIT
855.30M	509.10M	219.60M	81.10M	37.40M
	EBITDA
1.43B	706.60M	567.90M	466.50M	-3.02B
	Net Income Common Stockholders
842.90M	56.20M	-36.50M	87.00M	-3.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	962.10M	1.06B	1.64B	1.27B
	Total Assets
9.87B	9.66B	9.44B	10.02B	19.69B
	Total Debt
991.20M	1.97B	1.37B	2.00B	4.32B
	Net Debt
-166.50M	1.02B	309.50M	677.50M	3.05B
	Total Liabilities
6.73B	6.48B	6.17B	6.60B	15.48B
	Stockholders Equity
3.09B	3.14B	3.24B	3.40B	4.15B
Cash Flow		Free Cash Flow
679.40M	467.80M	194.20M	589.60M	400.80M
	Operating Cash Flow
961.00M	693.00M	352.10M	781.30M	656.90M
	Investing Cash Flow
-75.80M	-125.60M	162.20M	817.30M	-180.60M
	Financing Cash Flow
-648.00M	-656.50M	-796.70M	-5.07B	-1.08B

TechnipFMC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price26.18

Price Trends

50DMA

29.00

Negative

100DMA

29.75

Negative

200DMA

28.11

Negative

Market Momentum

MACD

0.77

Negative

RSI

70.95

Negative

STOCH

95.30

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTI, the sentiment is Negative. The current price of 26.18 is below the 20-day moving average (MA) of 28.78, below the 50-day MA of 29.00, and below the 200-day MA of 28.11, indicating a bearish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 70.95 is Negative, neither overbought nor oversold. The STOCH value of 95.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTI.

TechnipFMC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKR	82 Outperform	$35.37B	12.00	18.47%	2.41%	9.10%	55.56%
FTI	78 Outperform	$10.17B	12.63	27.06%	0.83%	16.23%	1403.29%
NOV	78 Outperform	$4.86B	7.96	10.12%	2.70%	3.42%	-35.98%
HAL	75 Outperform	$17.23B	7.06	25.14%	3.53%	-0.32%	-3.41%
SLB	73 Outperform	$45.07B	10.67	21.59%	3.47%	9.58%	6.53%
TS	67 Neutral	$18.93B	8.94	12.18%	4.36%	-15.77%	-45.74%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

* Energy Sector Average

Performance Comparison

FTI

TechnipFMC

26.18

-0.57

-2.13%

BKR

Baker Hughes Company

38.75

5.38

16.12%

HAL

Halliburton

22.07

-18.10

-45.06%

NOV

12.77

-7.13

-35.83%

SLB

Schlumberger

35.98

-16.82

-31.86%

Tenaris SA

32.65

-5.86

-15.22%

TechnipFMC Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -5.96% | Next Earnings Date: Apr 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance by TechnipFMC, with significant growth in orders, revenue, and EBITDA. The increase in Subsea and iEPCI orders, along with the success of the Subsea 2.0 platform, highlights the company's robust operational execution. Although there were some declines in Surface Technologies revenue and Subsea EBITDA margin, the overall positive financial results and strategic achievements, such as increased shareholder returns and a positive outlook for energy markets, contribute to a positive sentiment.

Highlights

Record Order Inbound and Revenue Growth

TechnipFMC achieved total company inbound of $11.6 billion for the full year, driving year-over-year growth in backlog to $14.4 billion. Total company revenue for the year grew 16% to $9.1 billion.

Significant Growth in Subsea and iEPCI Orders

Subsea inbound orders increased to $10.4 billion, marking the fourth consecutive year with a book-to-bill greater than one. iEPCI orders grew nearly 25% year-over-year, reaching an all-time high.

Strong Financial Performance

Adjusted EBITDA improved to nearly $1.4 billion, an increase of 47% compared to the prior year. Full year free cash flow grew 45% to $679 million.

Subsea 2.0 Platform Success

Subsea 2.0 orders in 2024 significantly outpaced the more than 50% growth of total Subsea awards versus the prior year, demonstrating strong market adoption.

Positive Outlook for Energy Markets

TechnipFMC remains positive about the outlook for energy, anticipating further growth in demand. They have secured $20.2 billion of Subsea orders in the past two years.

Increased Shareholder Returns

The company returned $486 million to shareholders, nearly double the distribution from the prior year, and plans to distribute at least 70% of free cash flow in 2025.

Lowlights

Decline in Surface Technologies Revenue

Surface Technologies revenue decreased 9% versus the prior year, although excluding the impact of the sale of the Measurement Solutions business, revenue increased 1%.

Subsea Adjusted EBITDA Margin Decrease

Subsea adjusted EBITDA margin was 16.5%, down 180 basis points from the third quarter, due to seasonally lower vessel-based activity and a mix of projects executed from backlog.

Company Guidance

In the TechnipFMC Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance for the upcoming year, highlighting significant financial and operational achievements. For the full year of 2024, TechnipFMC reported a total inbound of $11.6 billion, driving a year-over-year growth in backlog to $14.4 billion. Subsea inbound orders reached $10.4 billion, marking the fourth consecutive year with a book-to-bill ratio greater than one. Total company revenue increased by 16% to $9.1 billion, while adjusted EBITDA rose by 47% to nearly $1.4 billion. Free cash flow grew 45% to $679 million, with $486 million returned to shareholders, almost double the prior year. For 2025, the company expects Subsea revenue to reach $8.6 billion with an adjusted EBITDA margin of 19.5%, reflecting a 10% revenue growth and a 28% adjusted EBITDA growth compared to 2024. Surface Technologies is projected to achieve $1.275 billion in revenue with a 15.5% adjusted EBITDA margin. Overall, TechnipFMC anticipates high single-digit total company revenue growth and an adjusted EBITDA increase to approximately $1.76 billion for the full year. They also plan to convert over 50% of adjusted EBITDA into free cash flow, with shareholder distributions expected to grow by at least 30% in 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.