Q: Could I please get you thoughts on Finning
5i Research Answer:
FTT has performed well in the last year, up nearly 16%. Valuation is quite cheap at 9.5x forward price-to-earnings. Balance sheet is very levered with $1.916B in net debt. Sales and earnings growth are expected to be marginal for 2024 and 2025. The stock was under some pressure in 2023 due to weakness in FTT's backlog which provides reasoning for the lower growth forecast. Nonetheless, sales continued to display positive growth in 2023. We think FTT is fine and the valuation looks good here but we do prefer TIH overall.