TechnipFMC Plc Profitability Analysis

FTI
 Stock
  

USD 8.69  0.39  4.30%   

For TechnipFMC Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TechnipFMC Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TechnipFMC Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TechnipFMC Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TechnipFMC Plc over time as well as its relative position and ranking within its peers. Please check Investing Opportunities.
  
The current Price to Sales Ratio is estimated to increase to 0.57. The current Return on Sales is estimated to increase to 0.0475. TechnipFMC Plc Net Income Common Stock is most likely to decrease significantly in the upcoming years. The last year's value of Net Income Common Stock was reported at 13.3 Million. The current Net Loss Income from Discontinued Operations is estimated to increase to about 78.3 M, while Accumulated Other Comprehensive Income is projected to decrease to (1.4 B).

TechnipFMC Plc Revenues

7.53 Billion

Is TechnipFMC Plc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TechnipFMC Plc. If investors know TechnipFMC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TechnipFMC Plc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.88
Market Capitalization
4.1 B
Quarterly Revenue Growth YOY
0.029
Return On Assets
0.0084
Return On Equity
-0.0571
The market value of TechnipFMC Plc is measured differently than its book value, which is the value of TechnipFMC that is recorded on the company's balance sheet. Investors also form their own opinion of TechnipFMC Plc's value that differs from its market value or its book value, called intrinsic value, which is TechnipFMC Plc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TechnipFMC Plc's market value can be influenced by many factors that don't directly affect TechnipFMC Plc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TechnipFMC Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine TechnipFMC Plc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TechnipFMC Plc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

TechnipFMC Plc Price to Book vs. Book Value Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining TechnipFMC Plc's current stock value. Our valuation model uses many indicators to compare TechnipFMC Plc value to that of its competitors to determine the firm's financial worth.
TechnipFMC Plc is one of the top stocks in book value per share category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  0.15  of Price to Book per Book Value Per Share. The ratio of Book Value Per Share to Price to Book for TechnipFMC Plc is roughly  6.50 . TechnipFMC Plc Book Value per Share is most likely to decrease significantly in the upcoming years. The last year's value of Book Value per Share was reported at 7.55. Comparative valuation analysis is a catch-all model that can be used if you cannot value TechnipFMC Plc by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for TechnipFMC Plc's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the TechnipFMC Plc's earnings, one of the primary drivers of an investment's value.

TechnipFMC Price to Book vs. Book Value Per Share

Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
TechnipFMC Plc 
Book Value per Share 
 = 
Common Equity 
Average Shares 
7.34 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
TechnipFMC Plc 
P/B 
 = 
MV Per Share 
BV Per Share 
1.13 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

TechnipFMC Price to Book Comparison

TechnipFMC Plc is currently under evaluation in price to book category among related companies.

TechnipFMC Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in TechnipFMC Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TechnipFMC Plc will eventually generate negative long term returns. The profitability progress is the general direction of TechnipFMC Plc's change in net profit over the period of time. It can combine multiple indicators of TechnipFMC Plc, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-1.3 B-1.4 B
Consolidated Income13.3 M14.3 M
Net Income13.3 M14.3 M
Net Income Common Stock13.3 M14.3 M
Net Loss Income from Discontinued Operations72.6 M78.3 M
Net Income to Non Controlling Interests12.4 M13.4 M
Operating Income33.9 M36.6 M
Income Tax Expense111.1 M146.8 M
Net Income Per Employee 665.00  717.50 
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 company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom. TechnipFMC Plc operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 20000 people.

TechnipFMC Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on TechnipFMC Plc. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TechnipFMC Plc position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TechnipFMC Plc's important profitability drivers and their relationship over time.

TechnipFMC Plc Profitability Trends

TechnipFMC Plc profitability trend refers to the progression of profit or loss within a business. An upward trend means that TechnipFMC Plc's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is TechnipFMC Plc's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

TechnipFMC Plc Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between TechnipFMC Plc different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards TechnipFMC Plc in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down TechnipFMC Plc's future profitability.

Use TechnipFMC Plc in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TechnipFMC Plc position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TechnipFMC Plc will appreciate offsetting losses from the drop in the long position's value.

TechnipFMC Plc Pair Trading

TechnipFMC Plc Pair Trading Analysis

The ability to find closely correlated positions to TechnipFMC Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TechnipFMC Plc when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TechnipFMC Plc - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TechnipFMC Plc to buy it.
The correlation of TechnipFMC Plc is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TechnipFMC Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TechnipFMC Plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TechnipFMC Plc can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your TechnipFMC Plc position

In addition to having TechnipFMC Plc in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Textiles Thematic Idea Now

Textiles
Textiles Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Textiles theme has 27 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Textiles Theme or any other thematic opportunities.
View All  Next Launch
Please check Investing Opportunities. Note that the TechnipFMC Plc information on this page should be used as a complementary analysis to other TechnipFMC Plc's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Complementary Tools for TechnipFMC Stock analysis

When running TechnipFMC Plc price analysis, check to measure TechnipFMC Plc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy TechnipFMC Plc is operating at the current time. Most of TechnipFMC Plc's value examination focuses on studying past and present price action to predict the probability of TechnipFMC Plc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move TechnipFMC Plc's price. Additionally, you may evaluate how the addition of TechnipFMC Plc to your portfolios can decrease your overall portfolio volatility.
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
To fully project TechnipFMC Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TechnipFMC Plc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TechnipFMC Plc's income statement, its balance sheet, and the statement of cash flows.
Potential TechnipFMC Plc investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although TechnipFMC Plc investors may work on each financial statement separately, they are all related. The changes in TechnipFMC Plc's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on TechnipFMC Plc's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.