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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for TechnipFMC plc. 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. In terms of the factors that were most noteworthy in this DCF analysis for FTI, they are:
The compound growth rate in the free cash flow of TechnipFMC plc over the past 3.98 years is -0.14%; that's better than only 21.07% of cash flow producing equities in the Energy sector, where it is classified.
38% of the company's capital comes from equity, which is greater than just 17.68% 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 -10.24. This coverage rate is greater than that of merely 8.4% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 DWSN, BRY, HLX, NNA, and GLNG.
TechnipFMC (FTI) +1.1% pre-market after winning a "large" contract award from Exxon Mobil (XOM) for the subsea system for the proposed Payara project offshore Guyana.TechnipFMC considers a "large" contract in the $500M-$1B range.The project includes 41 enhanced vertical deepwater trees and associated tooling, six flexible risers and 10 manifolds along...
Source: Oil And Gas People COVID-19 has practically shut down business activity and led to millions of displaced workers. The decline in business activity has led to demand destruction in several industries, including oil. Brent oil is now in the $40 range after free-falling in March. Until the economy fully...
Shock Exchange on Seeking Alpha | September 15, 2020