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:
Below please find a table outlining a discounted cash flow forecast for FTI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TechnipFMC plc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for FTI, they are:
37% of the company's capital comes from equity, which is greater than only 20.6% of stocks in our cash flow based forecasting set.
TechnipFMC plc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -8.77. This coverage rate is greater than that of only 8.74% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, TechnipFMC plc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FTI, try FLMN, NS, PBA, PSX, and HAL.
TechnipFMC (FTI) sold €150M of new 4.500% notes due 30 June 2025, in a private offering. The offering closed on June 30, 2020.Net proceeds will be used to repay a portion of the company’s near-term debt.FTI -0.73% PM....
Technavio has been monitoring the subsea production systems market and it is poised to grow by USD 1 bn during 2020-2024, progressing at a CAGR of almost 3% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200701005475/en/ Technavio has announced its latest market research report titled Global Subsea Production Systems Market 2020-2024 (Graphic: Business Wire) Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Please Request Latest Free Sample Report on COVID-19 Impact The market is fragmente...