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Firan Tech (TSE:FTG)
TSX:FTG
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Firan Tech
(TSX:FTG)
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Rating:78Outperform
Price Target:
C$12.50
▲(7.67% 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 (FTG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$333.04M
Dividend YieldN/A
Average Volume (3M)92.34K
Price to Earnings (P/E)24.7
Beta (1Y)1.35
Revenue Growth15.09%
EPS Growth31.55%
CountryCA
Employees697
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.12
Shares Outstanding25,173,390
10 Day Avg. Volume175,050
30 Day Avg. Volume92,336
Financial Highlights & Ratios
PEG Ratio-1.97
Price to Book (P/B)2.42
Price to Sales (P/S)1.08
P/FCF Ratio25.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 MoneyFiran 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 Earnings Call Summary
Earnings Call Date:Oct 08, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
FTG showed strong financial performance with significant revenue growth, backlog increase, and successful acquisition integration. However, the company faces challenges with aerospace transition delays and tariff uncertainties, which could impact future performance.Q3-2025 Updates
Positive Updates
Revenue Growth
FTG reported Q3 2025 revenue of $47.7 million, an 11% increase over Q3 2024.
Backlog Increase
The company's backlog increased by 12% to $137 million compared to the previous year-end.
Adjusted EBITDA Improvement
Adjusted EBITDA rose to $7.6 million in Q3 2025, up from $7.2 million in Q3 2024.
Net Debt Reduction
FTG reduced its net debt by $4 million to $9.5 million.
Aerospace Sales Surge
Aerospace segment sales increased by 25% in Q3 2025, largely due to the acquisition of FLYHT.
European Expansion
Sales into Europe grew by 140% year-over-year.
Successful Acquisition Integration
The acquisition of FLYHT was profitable for the second straight quarter and contributed significantly to growth.
Negative Updates
Aerospace Transition Challenges
Transition of the C919 assembly product to Tianjin caused shipment delays, affecting Q3 deliveries and possibly Q4.
Tariff Concerns
FTG faces uncertainties due to U.S. tariffs, impacting input costs and potential future sales.
Fredericksburg and Haverhill Soft Demand
These locations experienced relatively softer demand compared to other sites.
Foreign Exchange Loss
FTG incurred a foreign exchange loss of $0.6 million in Q3 2025.
Company Guidance
During the FTG Third Quarter 2025 Analyst Call, the company reported several key financial metrics and strategic initiatives. FTG's bookings for Q3 were $51.5 million, resulting in a book-to-bill ratio of 1.08, while the quarter-end backlog increased by 12% year-over-year to $137 million. Revenue rose by 11% to $47.7 million, with adjusted EBITDA reaching $7.6 million, up from $7.2 million the previous year. Adjusted net earnings increased by 5.9% to $2.9 million, and net debt was reduced by $4 million, standing at $9.5 million. Operating cash flow less lease payments was $5.5 million. The company highlighted the successful integration of its recent acquisition, FLYHT, which was profitable for the second consecutive quarter. FTG also completed a supplemental type certificate with the European Aviation Safety Agency for the AFIRS Edge+ product on Airbus A320 aircraft and booked its first Edge+ order from an Asian customer. Strategic organizational changes included key new hires to enhance leadership, positioning FTG for future growth. The company also highlighted strong end-market demand, particularly from Airbus and Boeing, with significant order backlogs and production plans, which are expected to benefit FTG's Aerospace business. Additionally, the company is focusing on expanding its global presence and mitigating risks related to U.S. tariffs by aligning manufacturing and sales strategies.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
Positive
11.61
Price Trends
11.28
Positive
11.43
Positive
10.84
Positive
Market Momentum
0.52
Negative
82.17
Negative
93.41
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 11.61 is below the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.28, and above the 200-day MA of 10.84, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 82.17 is Negative, neither overbought nor oversold. The STOCH value of 93.41 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$333.04M | 24.66 | 17.40% | ― | 15.09% | 31.55% | |
72 Outperform | C$14.78B | 33.48 | 9.00% | ― | 9.12% | ― | |
72 Outperform | C$1.15B | 27.00 | 5.64% | 0.93% | 8.84% | 131.58% | |
70 Outperform | C$3.84B | 33.58 | 8.88% | ― | 57.77% | 57.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$25.05B | 42.29 | ― | ― | 6.60% | -1.71% | |
52 Neutral | $310.30M | -5.23 | -48.13% | ― | 26.74% | 53.14% |
* Industrials Sector Average
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13.85
6.58
90.51%
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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.