TechnipFMC (FTI) AI Stock Analysis

• Market Cap: $16.59B
• Dividend Yield: 0.5%
• Average Volume (3M): 6.68M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.03
• Revenue Growth: 12.15%
• EPS Growth: 91.88%
• Country: US
• Employees: 21,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.68
• Shares Outstanding: 411,016,480
• 10 Day Avg. Volume: 5,597,146
• 30 Day Avg. Volume: 6,675,845
• PEG Ratio: 0.01
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 18.28
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 7.57
• Enterprise Value/Ebitda: 9.39
• 1Y Price Target: $42.67
• Price Target Upside: 5.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 81 Outperform
• Price Target: $45.00 ▲(11.47% Upside)

TechnipFMC's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust growth and strategic advancements. While technical indicators are generally positive, caution is advised due to overbought signals. The valuation is fair, supporting a solid investment case.

Positive Factors

Strong Cash Flow

The significant increase in free cash flow highlights TechnipFMC's efficient cash management and liquidity strength, ensuring the company can fund operations, invest in growth, and return value to shareholders over the long term.

Technological Innovations

TechnipFMC's focus on innovation and collaboration positions it as a leader in technological advancements, enhancing its competitive edge and ability to meet evolving industry demands.

Record Inbound Orders

The record inbound orders indicate strong customer relationships and demand for TechnipFMC's offerings, supporting revenue growth and market leadership in the subsea segment.

Negative Factors

Challenges in North America

Exiting unprofitable markets may improve margins but also reduces market presence, potentially limiting growth opportunities in North America.

Restructuring Charges

Restructuring and impairment charges reflect ongoing business transformation efforts, which can strain financial resources and impact short-term profitability.

Competitive Market Challenges

Intense competition in certain regions could pressure pricing and margins, challenging TechnipFMC's ability to maintain its market position and profitability.

TechnipFMC Business Overview & Revenue Model

Company Description

TechnipFMC 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 Money

TechnipFMC generates revenue primarily through its Subsea and Surface Technologies segments. The Subsea segment earns money by providing subsea production systems and related services to oil and gas operators, including the installation and maintenance of underwater infrastructure. The Surface Technologies segment focuses on providing equipment and services for onshore oil and gas production, including flow control and processing solutions. The company also benefits from long-term contracts with major energy companies, which provide a steady stream of income. Additionally, strategic partnerships and joint ventures with key players in the energy sector enhance TechnipFMC's market presence and revenue potential.

TechnipFMC Financial Statement Overview

Summary

TechnipFMC exhibits strong financial performance with robust revenue and profit growth, a balanced capital structure, and excellent cash management. The income statement, balance sheet, and cash flow metrics all indicate a solid financial foundation.

Income Statement

TechnipFMC exhibits strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 4.41% from the previous annual period. The gross profit margin has significantly improved to 29.15%, and net profit margin is robust at 9.6%. The EBIT margin stands at 12.16%, showing solid operational efficiency. EBITDA margin is also healthy at 14.54%. These metrics indicate strong profitability and operational performance.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.31, indicating good leverage management. The equity ratio is 32.26%, suggesting a balanced capital structure. Return on equity (ROE) is high at 28.01%, reflecting effective use of equity to generate profits. Overall, the balance sheet reflects financial stability with a manageable level of debt.

Cash Flow

TechnipFMC demonstrates strong cash flow performance with a substantial increase in free cash flow from the previous period, growing by 93.99%. The operating cash flow to net income ratio of 1.8 and free cash flow to net income ratio of 1.45 indicate efficient cash conversion and strong liquidity. These metrics highlight excellent cash management and liquidity strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.50B	9.10B	7.83B	6.70B	6.40B	6.53B
Gross Profit	2.00B	1.79B	1.34B	896.30M	823.90M	694.80M
EBITDA	1.62B	1.40B	964.00M	576.80M	464.00M	307.50M
Net Income	937.50M	869.60M	22.90M	-107.20M	13.30M	-3.29B
Balance Sheet
Total Assets	10.08B	9.87B	9.66B	9.44B	10.02B	19.69B
Cash, Cash Equivalents and Short-Term Investments	950.00M	1.17B	962.10M	1.06B	1.64B	1.27B
Total Debt	1.60B	1.79B	1.97B	2.29B	2.83B	4.32B
Total Liabilities	6.79B	6.73B	6.48B	6.17B	6.60B	15.43B
Stockholders Equity	3.25B	3.09B	3.14B	3.24B	3.40B	4.15B
Cash Flow
Free Cash Flow	1.32B	679.40M	451.10M	194.20M	589.60M	400.80M
Operating Cash Flow	1.64B	961.00M	676.30M	352.10M	781.30M	656.90M
Investing Cash Flow	-303.70M	-75.80M	-125.60M	162.20M	768.70M	-180.60M
Financing Cash Flow	-1.11B	-648.00M	-639.80M	-796.70M	-5.02B	-1.08B

TechnipFMC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTI, the sentiment is Positive. The current price of 40.37 is above the 20-day moving average (MA) of 39.27, above the 50-day MA of 36.94, and above the 200-day MA of 31.95, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTI.

TechnipFMC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	81 Outperform	$16.59B	18.91	29.27%	0.50%	12.15%	91.88%
BKR	78 Outperform	49.81B	16.39	17.22%	1.78%	2.13%	54.69%
HAL	77 Outperform	21.41B	11.54	17.72%	2.71%	-4.08%	-29.26%
SLB	73 Outperform	53.05B	11.85	20.16%	3.18%	0.94%	-4.63%
TS	73 Outperform	19.04B	9.42	12.12%	4.69%	-12.06%	-21.43%
NOV	70 Outperform	5.01B	10.97	7.18%	3.78%	-1.21%	-54.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%