TechnipFMC plc (FTI) Stock Analysis
TechnipFMC plc (FTI) Stock Analysis
Analysis from 10-Q filed 2025-10-23. Data as of Q4 2025.
Overall Grade: F (Concerning)
TechnipFMC plc faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 27.2% | Above industry average |
| FCF Margin | 14.6% | Healthy cash flow |
| Debt/Equity | 0.1x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 27.2% suggests durable competitive advantages and efficient capital allocation.
Explore TechnipFMC plc: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: TechnipFMC plc earns 27.2% ROIC, Top 5% in Industrials
TechnipFMC plc's trailing-twelve-month ROIC of 27.2% ranks Top 5% in Industrials companies (sector median: 7.4%), driven by NOPAT margin of 11.0% combined with asset turnover of 1.0x. Source: 10-Q filed 2025-10-23.
| Metric | FTI | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.2% | Excellent | Above sector median of 7.4% |
| Return on Equity (ROE) | 29.9% | Excellent | Efficient use of shareholder equity |
| Operating Margin | 14.5% | Good | Moderate operational efficiency |
Cash Flow: TechnipFMC plc generates $1.4B FCF at 14.6% margin, positive NaN/8 quarters
TechnipFMC plc generated $1.4B in free cash flow (TTM), a 14.6% FCF margin, a margin that ranks Top 25% in Industrials. Operating cash flow exceeds net income by 1.8x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-23.
| Metric | FTI | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.6% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $1.4B | Good | Positive cash generation |
| OCF/Net Income | 1.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: TechnipFMC plc at 0.1x leverage
TechnipFMC plc's debt-to-equity ratio of 0.1x reflects conservative leverage. Net cash position of $601.9M provides financial flexibility. Source: 10-Q filed 2025-10-23.
| Metric | FTI | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $601.9M | Excellent | Net cash positive |
Valuation: TechnipFMC plc trades at 19.0x earnings
TechnipFMC plc trades at a P/E of 19.0x. Free cash flow yield of 7.9% offers attractive cash returns relative to price.
| Metric | FTI | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.0x | Adequate | Reasonable valuation |
| EV/Sales | 1.8x | Excellent | Attractive revenue multiple |
| FCF Yield | 7.9% | Good | Attractive cash return |
| Dividend Yield | 0.4% | Adequate | Growth focus over income |
Capital Allocation: TechnipFMC plc returns 5.4% shareholder yield
TechnipFMC plc's total shareholder yield is 5.4% (dividends 0.4% + buybacks 5.0%). Source: 10-Q filed 2025-10-23.
| Metric | FTI | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.4% | Good | Dividend + buyback yield combined |
| Buyback Yield | 5.0% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $1.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.2% | Top 5% | 3.7x above |
| Free Cash Flow Margin | 14.6% | Top 25% | 3.1x above |
| Operating Margin | 14.5% | Top 25% | 1.9x above |
| Return on Equity (ROE) | 29.9% | Top 25% | 3.4x above |
| P/E Ratio | 19.0x | N/A | - |
Financial Scorecard
| Metric | FTI | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 27.2% | Excellent | Top 5% of sector (median: 7.4%) |
| Free Cash Flow Margin | 14.6% | Good | Top 25% of sector (median: 4.8%) |
| Debt to Equity Ratio | 12.8% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 19.0x | Adequate | Fair value |
| Free Cash Flow Yield | 7.9% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is TechnipFMC plc's Return on Invested Capital (ROIC)?
TechnipFMC plc (FTI) has a trailing twelve-month Return on Invested Capital (ROIC) of 27.2%. This compares above the sector median of 7.4%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is TechnipFMC plc's Free Cash Flow Margin?
TechnipFMC plc (FTI) has a free cash flow margin of 14.6%, generating $1.4 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is TechnipFMC plc stock overvalued or undervalued?
TechnipFMC plc (FTI) trades at a P/E ratio of 19.0x, which is above the sector median of N/A. The EV/Sales multiple is 1.8x. Free cash flow yield is 7.9%, which represents an attractive cash return to investors.
Q: Does TechnipFMC plc pay a dividend?
TechnipFMC plc (FTI) currently pays a dividend yield of 0.4%. Including share buybacks, the total shareholder yield is 5.4%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is TechnipFMC plc's revenue and earnings growth?
TechnipFMC plc (FTI) grew revenue by 9.4% year-over-year. Earnings per share increased by 20.9% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is TechnipFMC plc buying back stock?
TechnipFMC plc (FTI) repurchased $918.3 million of stock over the trailing twelve months. This represents a buyback yield of 5.0%.
Q: How does TechnipFMC plc compare to competitors in Industrials?
Compared to other companies in Industrials, TechnipFMC plc (FTI) shows: ROIC of 27.2% is above the sector median of 7.4% (Top 0%). FCF margin of 14.6% exceeds the sector median of 4.8% (Top 15% of sector). These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with TechnipFMC plc?
TechnipFMC plc (FTI) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.