TechnipFMC designs, manufactures, and services technological systems and products for customers in the energy industry worldwide. It operates through Subsea Technologies, Surface Technologies, and Energy Infrastructure segments. The company was founded in 2000 and is based in Houston, Texas.
FTI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for TechnipFMC plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that TechnipFMC plc ranked in the 11th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of TechnipFMC plc, consider:
Interest coverage, a measure of earnings relative to interest payments, is -10.24 -- which is good for besting only 20.47% of its peer stocks (US stocks in the Energy sector with positive cash flow).
The company's compound free cash flow growth rate over the past 3.98 years comes in at -0.14%; that's greater than merely 11.84% of US stocks we're applying DCF forecasting to.
TechnipFMC plc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BRY, GLNG, DWSN, HLX, and NNA can be thought of as valuation peers to FTI, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.