TechnipFMC plc Ordinary Share (FTI)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $1.1 billion in annual free cash flow (3.7% yield on market cap)
• High return on equity of 29.6% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.39, providing financial flexibility
• Established organization with 21,975 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($21) with negative 254% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

TechnipFMC plc Ordinary Share is a mid-cap energy company valued at $29.5 billion. The business generates $9.9 billion in annual revenue with a 2.4% net margin and $1.1 billion in free cash flow. From a quality standpoint, TechnipFMC shows Altman Z-Score of 2.5 in the grey zone and strong 30% ROE. On valuation, the stock is trading at a premium 31.5x earnings, with trades far above its Graham Number ($21) with no margin of safety. Growth dynamics show revenue growing at 6.3% and profit growth of 8.0%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.1 billion in annual free cash flow (3.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 32x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer