Firan Tech (FTG) AI Stock Analysis

• Market Cap: C$294.28M
• Dividend Yield: N/A
• Average Volume (3M): 92.34K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.25
• Revenue Growth: 15.09%
• EPS Growth: 31.55%
• Country: CA
• Employees: 697
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.12
• Shares Outstanding: 25,173,390
• 10 Day Avg. Volume: 175,050
• 30 Day Avg. Volume: 92,336
• PEG Ratio: -1.97
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 25.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$15.00
• Price Target Upside: 27.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$12.50 ▲(5.93% Upside)

Firan Tech's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators show moderate bullish momentum, while valuation is fair. Challenges such as aerospace transition delays and tariff uncertainties are notable risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability and expansion potential.

Successful Acquisition Integration

Effective integration of acquisitions boosts operational capabilities and market reach, supporting sustained growth and competitive positioning.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling strategic investments and debt reduction, which supports long-term growth.

Negative Factors

Rising Debt Levels

Increasing debt levels can strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Aerospace Transition Challenges

Delays in aerospace transitions can disrupt supply chains and customer relationships, potentially affecting revenue and market reputation.

Tariff Concerns

Tariff uncertainties can increase costs and reduce competitiveness, posing risks to profitability and market positioning in affected regions.

Firan Tech Business Overview & Revenue Model

Company Description

Firan Technology Group Corporation manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards primarily in Canada, the United States, Asia, Europe, and rest of Americas. It operates in two segments, FTG Circuits and FTG Aerospace. The company offers printed circuit boards, standard rigid, high-density interconnect, RF circuitry, thermal management, and rigid flex and assembly products. It also provides avionic sub-system hardware products, such as backlit control panels and assemblies, integrated switch panels, MCDU keyboards, primary display bezels, cursor control devices, and advanced control panel assemblies/line replaceable units. The company was formerly known as Circuit World Corporation and changed its name to Firan Technology Group Corporation in May 2004. Firan Technology Group Corporation was founded in 1983 and is headquartered in Toronto, Canada.

How the Company Makes Money

Firan Tech generates revenue primarily through the sale of its high-reliability printed circuit boards and related electronic manufacturing services. The company's revenue model relies on multiple key streams, including direct sales to original equipment manufacturers (OEMs) and subcontracting services for larger defense and aerospace projects. Significant partnerships with major players in the aerospace and defense industries contribute to consistent revenue through long-term contracts and repeat business. Additionally, FTG benefits from a reputation for quality and reliability, allowing it to command premium pricing for its specialized products.

Firan Tech Financial Statement Overview

Summary

Firan Tech shows strong financial health with robust revenue growth and profitability improvements. The balance sheet is solid, with moderate leverage and strong equity returns. However, the decline in free cash flow growth is a potential risk that needs addressing.

Income Statement

Firan Tech's income statement shows strong performance with a consistent revenue growth rate of 5.45% in TTM, indicating a positive trajectory. The gross profit margin improved to 30.93%, and the net profit margin increased to 7.70%, reflecting enhanced profitability. EBIT and EBITDA margins also improved, showcasing operational efficiency. However, the company should remain vigilant about maintaining these margins in a competitive industry.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.51 in TTM, indicating moderate leverage. The return on equity is strong at 17.70%, suggesting effective use of equity capital. The equity ratio of 53.94% shows a solid equity base. Continued focus on managing debt levels will be crucial for maintaining financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 28.22% in TTM, which is a concern. However, the operating cash flow to net income ratio of 0.47 indicates reasonable cash generation relative to net income. The free cash flow to net income ratio of 0.73 shows that a significant portion of earnings is converted to free cash flow. Improving cash flow generation will be key to sustaining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.58M	162.10M	135.20M	89.62M	79.36M	102.44M
Gross Profit	58.74M	44.18M	45.83M	21.31M	17.13M	26.42M
EBITDA	31.74M	25.73M	22.26M	7.92M	8.42M	10.69M
Net Income	13.86M	10.81M	11.62M	698.00K	170.00K	1.39M
Balance Sheet
Total Assets	165.73M	134.98M	125.71M	83.75M	79.45M	86.68M
Cash, Cash Equivalents and Short-Term Investments	9.70M	9.96M	6.62M	15.67M	20.20M	19.03M
Total Debt	44.30M	35.31M	35.18M	13.59M	12.94M	18.86M
Total Liabilities	72.95M	62.14M	65.38M	34.45M	28.41M	35.39M
Stockholders Equity	92.25M	72.15M	59.53M	48.33M	50.10M	50.28M
Cash Flow
Free Cash Flow	14.35M	6.88M	4.77M	-1.05M	4.73M	12.56M
Operating Cash Flow	19.73M	14.13M	11.30M	11.26M	7.63M	15.78M
Investing Cash Flow	-11.02M	-7.24M	-23.77M	-12.02M	-2.95M	-2.87M
Financing Cash Flow	-6.41M	-4.34M	3.57M	-1.73M	-2.70M	-1.17M

Firan Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTG, the sentiment is Positive. The current price of 11.8 is above the 20-day moving average (MA) of 11.26, above the 50-day MA of 10.93, and above the 200-day MA of 10.54, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 90.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FTG.

Firan Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	78 Outperform	C$294.28M	21.01	17.40%	―	15.09%	31.55%
CAE	72 Outperform	C$13.81B	31.58	9.00%	―	9.12%	―
MAL	72 Outperform	C$1.05B	23.93	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$3.41B	30.30	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.A	63 Neutral	C$23.78B	41.29	―	―	6.60%	-1.71%
DPRO	52 Neutral	C$254.01M	-4.14	-48.13%	―	26.74%	53.14%

Firan Tech Corporate Events

Firan Technology Group Reports Strong Q3 2025 Financial Results and Strategic Growth

FTG reported strong financial results for Q3 2025, with a 10.8% increase in revenue to $47.7 million and a 12% rise in backlog to $137.1 million. The company is strategically investing in growth, as evidenced by the integration of the FLYHT acquisition and the certification of the AFIRS Edge+™ for Airbus aircraft, which positions FTG for global deployment and enhances its market presence.

Firan Tech Renews Stock Buyback Program with TSX Approval

Firan Technology Group Corporation announced that the Toronto Stock Exchange has accepted its renewal of a Normal Course Issuer Bid, allowing the company to repurchase up to 5% of its common shares over the next year. This strategic move is seen as a beneficial use of corporate funds, potentially enhancing shareholder value and reflecting confidence in the company’s financial health and market position.

Firan Technology Group to Announce Q3 2025 Financial Results

Firan Technology Group Corporation announced the release of its third quarter 2025 financial results, scheduled for October 8, 2025, with a subsequent conference call on October 9, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the aerospace and defense electronics industry.