Finning International (FTT) AI Stock Analysis

• Market Cap: C$9.52B
• Dividend Yield: 1.56%
• Average Volume (3M): 448.79K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.39
• Revenue Growth: 1.32%
• EPS Growth: 24.27%
• Country: CA
• Employees: 13,188
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.17
• Shares Outstanding: 131,521,960
• 10 Day Avg. Volume: 342,722
• 30 Day Avg. Volume: 448,793
• PEG Ratio: 5.33
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 6.24
• 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$83.67
• Price Target Upside: 13.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$83.00 ▲(12.15% Upside)

Finning International's overall stock score is driven by strong earnings performance and positive technical indicators. The company's solid financial foundation and strategic execution are tempered by valuation concerns and challenges in maintaining growth momentum. The earnings call provided a positive outlook, reinforcing confidence in future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Power Systems Backlog

A growing backlog in Power Systems suggests sustained demand and future revenue, enhancing business predictability and operational planning.

Order Intake Surge

A significant increase in order intake reflects strong market demand and operational effectiveness, supporting future revenue growth.

Negative Factors

Product Support Margin Pressure

Pressure on product support margins can affect profitability, indicating potential challenges in maintaining cost efficiency and pricing power.

Lower EBIT Margin in South America

Decreased EBIT margins in South America suggest regional operational challenges, potentially impacting overall profitability and growth.

Challenges in Construction Sector

Subdued construction activity in key regions could limit growth opportunities, affecting revenue from new equipment sales and utilization rates.

Finning International Business Overview & Revenue Model

Company Description

Finning International Inc. is a leading distributor of Caterpillar equipment and services in Canada, the United Kingdom, and South America, primarily operating in the construction, mining, and forestry sectors. The company provides a wide range of products including heavy equipment, machinery, parts, and aftermarket services. With a focus on enhancing productivity and efficiency for its customers, Finning also offers rental solutions, equipment sales, and comprehensive maintenance services, positioning itself as a key player in the heavy equipment industry.

How the Company Makes Money

Finning International generates revenue through multiple streams, primarily from the sale of new and used heavy equipment and machinery, which constitute a significant portion of its income. The company also earns revenue through parts sales, providing essential components for maintenance and repair of equipment. Additionally, Finning's aftermarket services, including equipment repair, maintenance contracts, and rental services, contribute to a steady revenue flow. Strategic partnerships with Caterpillar and other manufacturers further enhance its market position, allowing Finning to leverage brand reputation and access a broad range of products. The company's diversification into various sectors, such as construction, mining, and forestry, also helps mitigate risks and stabilize earnings across different market conditions.

Finning International Financial Statement Overview

Summary

Finning International demonstrates solid profitability and efficient cost management, as evidenced by stable margins and a strong return on equity. However, recent declines in revenue growth and free cash flow highlight potential challenges in maintaining growth momentum. The company's balanced leverage and strong cash flow to net income ratios provide a stable financial foundation, but attention to reversing the negative growth trends will be crucial for future performance.

Income Statement

Finning International shows a stable gross profit margin around 22%, indicating consistent profitability in its operations. However, the net profit margin has slightly decreased to 4.3% in the TTM, reflecting some pressure on net earnings. Revenue growth has turned negative at -2.7% in the TTM, suggesting a potential slowdown in sales. Despite this, EBIT and EBITDA margins remain healthy, indicating efficient cost management.

Balance Sheet

The company's debt-to-equity ratio is close to 1, indicating a balanced approach to leveraging. Return on equity is strong at 18.8%, showcasing effective use of shareholder funds to generate profits. The equity ratio is not explicitly calculated, but the balance between debt and equity suggests a stable financial structure.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.38, indicating that cash generation is aligned with reported earnings. However, free cash flow has decreased significantly by 40.8% in the TTM, which could impact future investments or debt repayments. The free cash flow to net income ratio remains strong at 0.89, showing that the company still generates substantial cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.76B	11.21B	10.53B	9.28B	7.29B	6.20B
Gross Profit	2.46B	2.48B	2.50B	2.22B	1.80B	1.57B
EBITDA	1.20B	1.09B	1.18B	975.00M	729.00M	515.00M
Net Income	633.00M	509.00M	523.00M	503.00M	364.00M	232.00M
Balance Sheet
Total Assets	7.84B	7.73B	7.56B	7.27B	5.97B	5.46B
Cash, Cash Equivalents and Short-Term Investments	431.00M	316.00M	177.00M	288.00M	502.00M	539.00M
Total Debt	2.54B	2.58B	2.70B	2.33B	1.81B	1.70B
Total Liabilities	5.15B	5.09B	5.03B	4.81B	3.63B	3.25B
Stockholders Equity	2.69B	2.63B	2.51B	2.44B	2.32B	2.21B
Cash Flow
Free Cash Flow	706.00M	856.00M	8.00M	-170.00M	292.00M	847.00M
Operating Cash Flow	844.00M	1.01B	228.00M	1.00M	425.00M	962.00M
Investing Cash Flow	195.00M	-128.00M	-229.00M	-268.00M	-151.00M	-99.00M
Financing Cash Flow	-860.00M	-816.00M	-71.00M	-13.00M	-300.00M	-573.00M

Finning International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.01
• 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 TSE:FTT, the sentiment is Positive. The current price of 74.01 is above the 20-day moving average (MA) of 73.26, above the 50-day MA of 67.21, and above the 200-day MA of 53.08, indicating a bullish trend. The MACD of 2.05 indicates Positive momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FTT.

Finning International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIH	77 Outperform	C$13.23B	26.70	16.34%	1.21%	2.97%	-0.80%
FTT	74 Outperform	C$9.52B	20.44	19.66%	1.56%	1.32%	24.27%
WJX	73 Outperform	C$541.89M	11.76	8.84%	5.23%	3.71%	-12.70%
ADEN	65 Neutral	$831.01M	13.64	6.99%	1.82%	7.18%	-9.38%
BBD.A	64 Neutral	C$19.58B	31.16	―	―	6.60%	-1.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARE	62 Neutral	C$1.83B	222.05	0.92%	2.88%	25.68%	―

Finning International Corporate Events

Finning International Reports Strong Q3 2025 Performance with Significant Revenue Growth

Finning International reported a strong performance in Q3 2025, with a 14% increase in revenue to $2.8 billion, driven by robust growth in all regions and sectors, particularly mining and power systems. The company achieved a 25% increase in EBIT and a 33% rise in EPS, reflecting effective cost control and strategic restructuring. Despite challenges in the construction market, Finning’s diverse business model and focus on product support have strengthened its earnings capacity and resilience, positioning it well for long-term growth.

The most recent analyst rating on (TSE:FTT) stock is a Hold with a C$78.00 price target. To see the full list of analyst forecasts on Finning International stock, see the TSE:FTT Stock Forecast page.