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Firan Tech (TSE:FTG)
:FTG

Firan Tech (FTG) AI Stock Analysis

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Firan Tech

(TSX:FTG)

Rating:80Outperform
Price Target:
C$13.50
▲(16.98%Upside)
Firan Tech is positioned well with strong financial performance, positive earnings call sentiment, and bullish technical indicators. However, valuation concerns and overbought technical signals warrant caution.

Firan Tech (FTG) vs. iShares MSCI Canada ETF (EWC)

Firan Tech Business Overview & Revenue Model

Company DescriptionFiran 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 MoneyFTG generates revenue through the sale of its high-reliability PCBs and precision enclosures. The company's primary revenue streams include contracts and orders from aerospace and defense companies, which require specialized, durable, and precise products. FTG's business model is heavily reliant on building long-term relationships with clients in these sectors, leveraging its expertise and reputation to secure repeat business. Additionally, FTG partners with various suppliers and technology firms to enhance its product offerings and expand its market reach, further contributing to its revenue.

Firan Tech Earnings Call Summary

Earnings Call Date:Apr 09, 2025
(Q1-2025)
|
% Change Since: 60.28%|
Next Earnings Date:Jul 08, 2025
Earnings Call Sentiment Positive
FTG's Q1 2025 earnings call reflects strong performance with record-breaking results, strategic acquisitions, and expansion into new markets, despite challenges related to tariffs and supply chain constraints. The overall sentiment is positive, driven by significant growth and strategic positioning.
Q1-2025 Updates
Positive Updates
Record Q1 Results
FTG reported the best Q1 results in its history, with total bookings reaching $51.5 million, marking a 37% increase over Q1 2024. Revenue was $42.9 million, a 22.6% increase over Q1 2024, and adjusted net earnings rose by over 200% to $3.3 million.
Successful Acquisition of FLYHT
The acquisition of FLYHT was completed, adding another growth lever to FTG. This acquisition is expected to increase FTG's penetration in the aftermarket and with Airbus, and offers opportunities for in-sourcing production.
Strong Aerospace Business Performance
Aerospace segment sales were up $5.2 million or 53% from Q1 last year, boosted by the acquisition of FLYHT and recovery from the previous year's strike at the Aerospace-Toronto facility.
Expansion into New Markets
FTG announced plans to open an aerospace facility in Hyderabad, India, to support strategic growth and expand market presence. This initiative will help mitigate potential tariff impacts and tap into India's growing aerospace market.
Improved Gross Margin
FTG achieved a gross margin of $13.3 million or 31% in Q1 2025 compared to $8.9 million or 25.5% in Q1 2024, driven by organic sales growth, improved operating performance, and favorable foreign exchange rates.
Negative Updates
Tariff Challenges
FTG faces ongoing uncertainties and challenges related to U.S. tariffs, which impact planning and operations, especially for sites in China and inputs for U.S. sites.
Supply Chain Constraints
Supply chain issues, particularly related to components, continue to pose challenges, affecting FTG's ability to meet demand and ramp up production.
Delayed Program Approvals
Delays in customer approvals for significant cockpit box assemblies impacted short-term performance in the Aerospace segment.
Company Guidance
During the Q1 2025 Analyst Call, FTG provided an optimistic outlook with several key financial metrics underscoring their strong start to the year. Total bookings for the quarter reached $51.5 million, reflecting a 37% increase compared to Q1 2024, while the quarter-end backlog stood at $142.5 million, up 43% from the previous year. Revenue for the quarter was reported at $42.9 million, marking a 22.6% increase over Q1 2024. Adjusted EBITDA rose significantly to $8.4 million from $4.6 million the previous year, and adjusted net earnings surged by over 200% to $3.3 million. The company maintained a solid balance sheet with net debt of $8.3 million following the acquisition of FLYHT, which was finalized with a payment of $4.3 million in cash and the assumption of $9.4 million in debt. Operating cash flow, less lease payments, was $9.3 million for the quarter. The acquisition of FLYHT was emphasized as a strategic move to enhance FTG's growth levers, particularly in the high-margin aftermarket segment and increasing penetration in markets like Airbus, which currently has a stronger market performance compared to Boeing.

Firan Tech Financial Statement Overview

Summary
Firan Tech shows strong financial performance with impressive revenue growth and robust profit margins. The balance sheet is stable with a healthy equity ratio and manageable debt. Cash flow efficiency is notable, supporting investments and debt servicing, although there is room for operational cost improvements.
Income Statement
82
Very Positive
Firan Tech has demonstrated strong revenue growth, increasing from $79.37 million in 2021 to $170.63 million TTM (Trailing-Twelve-Months). The gross profit margin has also improved, reflecting efficient cost management. Net profit margins are robust at 7.58% TTM, indicating profitability. However, the EBIT margin has slightly decreased, suggesting increased operational costs. Overall, the income statement reflects a positive trajectory with room for operational improvement.
Balance Sheet
75
Positive
The balance sheet shows a healthy equity ratio of 50.29% TTM, indicating a strong capital structure. The debt-to-equity ratio is manageable at 0.53, suggesting reasonable leverage. Return on equity stands at 15.28% TTM, showcasing effective utilization of equity. The company's balance sheet is stable, though attention to debt levels could further enhance financial health.
Cash Flow
78
Positive
Firan Tech has exhibited impressive free cash flow growth, with a significant increase in recent periods. The operating cash flow to net income ratio of 1.81 TTM indicates solid cash generation efficiency. The free cash flow to net income ratio is strong at 1.45 TTM, highlighting effective cash management. The cash flow statement is robust, supporting ongoing investments and debt servicing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue170.63M162.10M135.20M89.62M79.36M102.44M
Gross Profit51.11M44.18M45.83M21.31M17.13M26.42M
EBITDA29.17M25.73M22.26M7.92M8.42M10.69M
Net Income12.93M10.81M11.62M698.00K170.00K1.39M
Balance Sheet
Total Assets168.33M134.98M125.71M83.75M79.45M86.68M
Cash, Cash Equivalents and Short-Term Investments9.98M9.96M6.62M15.67M20.20M19.03M
Total Debt45.04M35.31M35.18M13.59M12.94M18.86M
Total Liabilities82.90M62.14M65.38M34.45M28.41M35.39M
Stockholders Equity84.65M72.15M59.53M48.33M50.10M50.28M
Cash Flow
Free Cash Flow18.70M6.88M4.77M-1.05M4.73M12.56M
Operating Cash Flow23.39M14.13M11.30M11.26M7.63M15.78M
Investing Cash Flow-10.69M-7.24M-23.77M-12.02M-2.95M-2.87M
Financing Cash Flow-7.81M-4.34M3.57M-1.73M-2.70M-1.17M

Firan Tech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.54
Price Trends
50DMA
10.25
Positive
100DMA
8.96
Positive
200DMA
8.07
Positive
Market Momentum
MACD
0.40
Positive
RSI
60.04
Neutral
STOCH
32.57
Neutral
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 11.54 is above the 20-day moving average (MA) of 11.51, above the 50-day MA of 10.25, and above the 200-day MA of 8.07, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FTG.

Firan Tech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSFTG
80
Outperform
C$289.34M21.4017.82%15.25%48.96%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
CACAE
$9.39B32.348.87%
TSMAL
73
Outperform
C$1.09B27.295.12%1.05%8.59%242.80%
TSSNA
24
Underperform
C$13.62M174.16%130.45%6.25%
$16.65M-978.94%
TSMDA
70
Outperform
C$4.46B44.578.54%49.98%108.76%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FTG
Firan Tech
11.47
5.53
93.10%
CAE
CAE
29.65
10.94
58.47%
TSE:MAL
Magellan Aerospace
19.19
11.26
141.99%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
DPRO
Draganfly
3.12
-2.21
-41.46%
TSE:MDA
MDA Ltd
37.17
24.18
186.14%

Firan Tech Corporate Events

Financial Disclosures
Firan Technology Group to Announce Q2 2025 Financial Results
Neutral
Jul 2, 2025

Firan Technology Group Corporation announced that it will release its second quarter 2025 financial results on July 8, 2025, followed by a live conference call on July 9, 2025, to discuss the results. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Product-Related AnnouncementsRegulatory Filings and Compliance
Firan Tech’s FLYHT Achieves 5G Certification for Boeing 737NG
Positive
May 15, 2025

Firan Technology Group’s subsidiary, FLYHT, has secured a Supplemental Type Certificate from Transport Canada Civil Aviation for its AFIRS Edge+™ product on the Boeing 737NG aircraft. This certification allows for the global deployment of the industry’s first 5G Wireless Quick Access Recorder, replacing outdated 2G and 3G systems, and enhancing real-time data capabilities for airlines. This milestone is expected to strengthen FTG’s market position and expand its regulatory compliance, facilitating broader market access for the Edge+ product.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Firan Technology Group Confirms Board Elections and Auditor Appointment at AGM
Neutral
Apr 10, 2025

Firan Technology Group Corporation announced the results of its annual general meeting, where all five director nominees were elected. The meeting also saw the appointment of McGovern Hurley LLP as the company’s auditor. The AGM was attended by shareholders representing 55.85% of the company’s common shares. This development is expected to maintain stability in FTG’s governance structure, potentially reinforcing its market position in the aerospace and defense electronics sector.

Executive/Board ChangesPrivate Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Firan Technology Group Reports Strong Q1 2025 with Strategic Expansions
Positive
Apr 9, 2025

Firan Technology Group Corporation reported a strong first quarter for 2025, with significant financial growth and strategic advancements. The company achieved a 37% increase in bookings and a 22.6% rise in revenue compared to the previous year. Key developments included the acquisition of FLYHT Aerospace Solutions Ltd., a contract with De Havilland Aircraft of Canada Ltd., and plans to open a new aerospace facility in India. These moves are expected to enhance FTG’s market presence and shareholder returns. Additionally, a new banking agreement with BMO Corporate Finance was completed, and leadership roles were strengthened with new executive appointments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 21, 2025