Is it a good company at a reasonable price? I was wonder why this stock took off and used Google AI and its said “primarily due to strong financial performance, record equipment backlogs, and an optimistic future outlook driven by high demand in the mining and construction sectors”. I noticed that Toromont has also taken off recently. Generally speaking, it is not a good idea to buy a stock at it all time high. I think this is a nice dividend growth stock, but it might be the wrong timing to buy. I would not buy because I have Toromont. The price seems to be on the expensive side at the moment.
I do not own this stock of Finning International Inc (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
When I was updating my spreadsheet, I noticed changes in governance. They got a new CFO and Chairman. Some of the officers and directors I have been following are gone. I added one new officer. The CFO was promoted from within. I added two new directors. Few of the directors have any shares in this company, but they do have Units of Deferred Share Units. I like to follow the CEO, CFO and one or two officer, plus the Chairman and one or two directors.
If you had invested in this company in December 2014, for $1,009.20 you would have bought 40 shares at $25.23 per share. In December 2024, after 10 years you would have received $339.16 in dividends. The stock would be worth $1,523.60. Your total return would have been $1,862.76. This would be a total return of 6.98% per year with 4.21% from capital gain and 2.77% from dividends. The 5 year return is better at 11.65, see paragraph below.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $25.23 | $1,009.20 | 40 | 10 | $339.16 | $1,523.60 | $1,862.76 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2%) at 1.68%. The 5, 10 and historical median dividend yields are moderate (2% to 4% ranges) at 2.71%, 2.79% and 2.03%. The dividend growth is low (below 8% per year at 5.7% per year over the past 5 years. The last dividend increase was in 2025 and it was for 10%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 30% with 5 year coverage at 33%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 28% with 5 year coverage at 39%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 12% with 5 year coverage at 12%. The DPR for 2024 for Free Cash Flow (FCF) is good at 18% with 5 year coverage at 39%. FCF varies from $865M, to $740M, so not particularly high variance.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 30.37% | 33.36% |
| AEPS | 28.29% | 38.72% |
| CFPS | 11.77% | 12.24% |
| FCF | 17.64% | 38.92% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.27 and currently at 0.14. The Liquidity Ratio for 2024 is good at 1.65 and 1.55 currently. The Debt Ratio for 2024 is good at 1.52 and fine at 1.48 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 2.94 and 1.94 and currently at 2.93 and 1.92.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.27 | 0.14 |
| Intang/GW | 0.11 | 0.04 |
| Liquidity | 1.65 | 1.69 |
| Liq. + CF | 1.93 | 1.87 |
| Debt Ratio | 1.52 | 1.52 |
| Leverage | 2.94 | 2.93 |
| D/E Ratio | 1.94 | 1.92 |
The Total Return per year is shown below for years of 5 to 37 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 5.69% | 11.65% | 8.53% | 3.13% |
| 2014 | 10 | 4.61% | 6.98% | 4.21% | 2.77% |
| 2009 | 15 | 6.14% | 8.66% | 5.66% | 3.00% |
| 2004 | 20 | 12.61% | 6.34% | 3.97% | 2.38% |
| 1999 | 25 | 9.97% | 10.08% | 7.17% | 2.92% |
| 1994 | 30 | 9.80% | 9.66% | 7.02% | 2.63% |
| 1989 | 35 | 7.02% | 9.62% | 7.14% | 2.48% |
| 1987 | 37 | 8.11% | 10.85% | 7.95% | 2.91% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.11, 10.43 and 12.20. The corresponding 10 year ratios are 12.97, 17.09 and 18.67. The corresponding historical ratios are 12.59, 16.96 and 19.90. The current P/AEPS Ratio is 19.23 based on a stock price of $72.10 and EPS estimate for 2025 of $3.75. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.16, 11.20 and 12.96. The corresponding 10 year ratios are 10.82, 14.06 and 17.36. The corresponding historical ratios are 11.93, 15.54 and 18.42. The current P/E Ratio is 17.63 based on a stock price of $72.10 and EPS estimate for 2025 of $4.09. The current ratio is between the median and the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $42.57. The 10-year low, median, and high median Price/Graham Price Ratios are 0.98, 1.18 and 1.39. The current ratio is 1.69 based on a stock price of $72.10. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 2.12. The current ratio is 3.66 based on a Book Value of $2,677M, Book Value per Share of $19.69 and a stock price of $72.10. The current ratio is 72% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 14.36. The current ratio is 13.72 based on Cash Flow per Share estimate for 2025 of $5.50, Cash Flow of $747M and a stock price of 72.10. The current ratio is 8.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. I noticed that the Cash Flow does vary a lot from year to year.
I get a 10 year median dividend yield of 2.79%. The current dividend yield is 1.68% based on dividends of $1.21 and a stock price of $72.10. The current dividend yield is 40% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
The 10-year median Price/Sales (Revenue) Ratio is 0.62. The current P/S Ratio is 0.95 based on Revenue estimate for 2025 of $10.278M, Revenue per Share of $75.59 and a stock price $72.10. The current ratio is 54% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is relatively expensive. The dividend yield tests are saying that the stock price is relatively expensive. This is confirmed by the P/S Ratio test. Most of the testing is also saying that the stock price is relatively expensive. This stock took off in March of 2025 and it is just off its all-time high.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3) and Hold (1). The consensus is a Buy. The 12 month stock price consensus is $70.89 with a high of $81.00 and low of $58.00. The consensus stock price of $70.89 implies a total return of 0% with a capital loss of 1.68% and dividends of 1.68% based on a current stock price of $72.10. To me, the stock price consensus and stock recommendations do not match. You got no gain over the next 12 month and the biggest recommendation is a Strong Buy?
There are only two entries on Stock Chase for 2025. One is a Top Pick and one is a Do Not Buy. The Do Not Buy likes TIH better. Amy Legate-Wolfe onMotley Fool likes this stock as a dividend growth stock for your TFSA. Christopher Liew on Motley Fool says this stock should be on your watch list. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their second quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock and looks at it fair value. Simply Wall Street thinks that is $84.41 and therefore this stock is undervalued. They have one warning of has a high level of debt.
Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company operates in Canada, Chile, UK, Argentina, and Others. Its web site is here Finning International Inc.
The last stock I wrote about was about was Johnson and Johnson (NYSE-JNJ) ... learn more. The next stock I will write about will be Quarterhill Inc (TSX-QTRH, OTC-QTRHF) ... learn more on Monday, November 10, 2025 around 5 pm.
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