Oil & Gas Field Machinery & Equipment
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and flexible pipe; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; pressure pumping; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems, flowback and well testing services; skid systems; digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop carbon transportation and storage services. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.
Discounted Cash Flow Valuation of Technipfmc Plc
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $732.6M | $851.2M | $978.4M | $1.112B | $1.251B | $1.391B | $1.53B | $1.664B | $1.788B | $1.9B | $1.995B | $19.95B |
DCF | $740.2M | $739.8M | $731.4M | $715.3M | $691.7M | $661.5M | $625.4M | $584.5M | $540M | $493.1M | $4.931B | |
Value | $11.45B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 0% | - | 0.75% | -15% | -18% | -25% | 0.21% | -1.6% | 0.66% | 2.6% |
ROA | 750K% | 740K% | 4.8% | -2.1% | -4.9% | -13% | 2% | 4% | 6.8% | 9.1% |
ROE | 0% | -16% | 0.84% | -18% | -31% | -78% | 0.39% | -3.3% | 1.6% | 6.9% |
The average Net Margin over the past 5 years is -9.87%.
The trend of Net Margin over the past 5 years is +4.41%.
The average ROA over the past 5 years is -1.21%.
The trend of ROA over the past 5 years is +2.47%.
The average ROE over the past 5 years is -21.52%.
The trend of ROE over the past 5 years is +7.52%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | 17.89 | -87.38 | -7.69 | 12.61 | 9.55 | 3.87 | 8.93 | 2.61 | 1.58 |
Debt Equity | - | 43677.46 | 0.29 | 0.41 | 0.65 | 1.09 | 0.67 | 0.53 | 0.38 | 0.38 |
MIN | ||||||||||
Graham Stability | - | - | - | -5.1K% | - | - | - | - | - | -5.1K% |
The Debt/FCF trailing twelve month is 1.58.
The trend of Debt/FCF over the past 5 years is 0.99.
Graham’s Stability measure stands at -50.89.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | - | -9% | -16% | 17% | 3.2% |
Net Income | - | - | - | - | - |
Stockholders Equity | 360% | -21% | -9% | -3.2% | -1.1M% |
FCF | 15% | - | -0.9% | 140% | 17% |
The Revenue CAGR over the past 5 years is -9.02%.
The trend of Revenue growth rate over the past 5 years is +3.21%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -.
The Equity CAGR over the past 5 years is -21.19%.
The trend of Equity growth rate over the past 5 years is -1.08M%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +16.83%.