# Finning International Inc. (FTT.TO)



## AGHFX (Aug 31, 2012)

Does anybody own or is anybody watching Finning? It appeared on a couple of my stock screens lately and I'm impressed by its financials. It has great liquidity, low dividend payout, high interest coverage adjusted for CFFO, and its CFFO/share (adjusted for share buybacks) has been increasing the past few quarters. I am also optimistic about the demand for Finning's services over the long run. I'm just waiting for a bit of a pullback on its price - thoughts?


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## Eder (Feb 16, 2011)

I own Finning. I like that they raise dividends regularly. They are a decent Canadian proxy to owning CAT with tax advantaged income and without the Forex juice. Its a good stock to help diversify an all Canadian portfolio. The stock price is volatile so if you are patient you can get in at reasonable levels. I personally dont think you want Finning as a buy & hold since they like to fall on their face regularly...I like to swing trade my position now & then...often CAT is a good leading indicator to help make decisions on this.

Please don't buy this stock due to the drivel I just posted.


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## AGHFX (Aug 31, 2012)

Thanks for you input, Eder. No worries about me making decisions based on your input - luckily I am quite disciplined with following my own fundamentals. I'm looking to trade this in my TFSA and I was curious if anybody else had experience with this stock. I actually like that it has a larger beta (for the TSX) because I'm looking to have a few more holdings in which I can swing trade my profits. I have my finger on the trigger (or place order button :rolleyes2 and I'm just waiting for them to, as you say, fall on their face.


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## gibor365 (Apr 1, 2011)

Eder said:


> I own Finning. I like that they raise dividends regularly. They are a decent Canadian proxy to owning CAT with tax advantaged income and without the Forex juice. Its a good stock to help diversify an all Canadian portfolio. The stock price is volatile so if you are patient you can get in at reasonable levels. I personally dont think you want Finning as a buy & hold since they like to fall on their face regularly...I like to swing trade my position now & then...often CAT is a good leading indicator to help make decisions on this.
> 
> Please don't buy this stock due to the drivel I just posted.


Anyone watchin FTT now? Current valuations are pretty cheap comparing to 5 years average, yield becoming more significant, good payout , they just 5% off 52 weeks low and strongly underperforming CAT for last several months..

Actually CAT also looks appealing now and they will increase dividends next Q


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## rassmy (May 7, 2010)

Just bought it today at $22.14, this stock did not go up with the market so far this year, IMO the downside is limited and potential upward when economy improves.


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## HaroldCrump (Jun 10, 2009)

FTT has been under-performing CAT for last 4 years now.

Dividend yield is almost the same, but CAT is mega cap, has huge volume, and has a very liquid options market too.
Why bother?


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## Eder (Feb 16, 2011)

Don't discount the power of tax efficient dividends. I like Finning here but will try wait a few months....Since 1980 Finning has doubled the return of CAT ...with tax advantaged dividends I think even more although my head hurts to figure out how much.


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## gibor365 (Apr 1, 2011)

Actually last year or last 6 months both performed equally poor.., nobody knows what will be future performance, fundamentals of both pretty similar,even yield will be very similar after CAT's next Q dividend increase. imho, for CASH or TFSA - FTT is better option, for RRSP/LIRA - CAT.
I like CAT for 19 years dividend increases....and S&P A+ credit rating 

P.S.. I'm not doing options, so don't care about this option... 

P.P.S looks like CAT has strong support at $80-81 and FTT at $22


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## KLR650 (Sep 12, 2010)

As an alternative to FTT, check out Canada's 2nd largest Cat dealer, Toromont (TIH). Might be on the small side for some investors, but its stock price has outperformed both FTT and CAT over the last 15 years (at least), plus has increased dividends for 24 years straight. It is also somewhat diversified, as they also have a large industrial refrigeration division. Worth a look.


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## londoncalling (Sep 17, 2011)

Excellent thread thus far. The chart shows that Finning has trailed CAT since 09 but the pattern is quite similar. The dividend comparisons (taxed vs non taxed) were excellent points. Gibor brought up the importance of dividend increases. and KLR provided a smaller cap alternative :encouragement: 

I was considering picking up CAT off and on for the past couple years not sure why I haven't jumped in yet. I have never really liked Finning until the past few months (like where it is on a 52 week perspective). Although I was aware of Toromont, I had never considered it as an option.

I think any of the 3 provide a viable option for whichever portfolio or investor it is suited towards. If one wants to throw in the thought of a weakening C$ as a factor than CAT may be the place shorter term. I am still leaning towards CAT currently because I would like to increase my US exposure. The recent pullback makes me think that there may be a buying opportunity on the horizon. More importantly for me the US run up the first half of the year may not make as play as big a role for a long term hold. As a result the returns of the US market the first half of the year should not be as big a factor in my reasoning to not increase my US exposure. Maybe it is just the sado-masochist in me but I love to torment and be tormented by my own investor psychology :tongue-new:

Cheers


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## MrMatt (Dec 21, 2011)

What about throwing DE into the mix? I'm thinking they might be preferable to CAT.


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## gibor365 (Apr 1, 2011)

londoncalling said:


> I was considering picking up CAT off and on for the past couple years not sure why I haven't jumped in yet. I have never really liked Finning until the past few months (like where it is on a 52 week perspective).


I had exactly same considerations regarding CAT and FTT  and I also want to increase my US holdings especially after locking gain and selling PRF. ... I'd initiate position in CAT in $80-81 range... considering upcoming dividend increase yield will be close to 2.8-3%


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## underemployedactor (Oct 22, 2011)

Half a milion investors must have read this thread. Big bump yesterday. What was that all about?


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## bleagues (Sep 24, 2013)

Just to bump this thread up.

I hold Finning, bought in the $23 range. Its been around $30 for a bit now.

Next quarterly report is in early may.

Analysts, monitored by Thomson Reuters have it rated highly.

Anyone else hold this? Your thoughts?


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## relk19 (Mar 13, 2014)

I got in around the $23 range as well. This was my first single stock purchase (not through etfs, mutual funds, etc..) and its been a good ride so far.

Don't have any plans to exit anytime soon, will see what the report in May brings us.


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## bleagues (Sep 24, 2013)

Down over 5% today on no apparent news. 

Buy on the dip?


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## underemployedactor (Oct 22, 2011)

^BMO downgraded which sent the weeping sisters into vapours. Some concerns over copper mining slowdown which could be negative to FTT.


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## leeder (Jan 28, 2012)

This company has traded between $20-$30 for the longest time. I think it's currently trading at the high end of the range. For buy & hold investors, the saving grace is the history of dividend increase. Even then, there are probably less volatile stocks out there.


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## pastorash (Feb 3, 2014)

Bought this recently, see what you mean about being a volatile stocks, should be an interesting ride...


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## treva84 (Dec 9, 2014)

So the last time Finning was this low was 2009. Long history of dividend growth, trading below it's 5 year P/E with a long standing history of Dividend Growth. Any takers?


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## dubmac (Jan 9, 2011)

treva84 said:


> Any takers?


why buy this now? Unless mining, O&G or construction projects increase and the good times roll, I don't see why it is a buy. You may wantt o have it as an long term spec play. It will likely improve ...when...IDK.


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## londoncalling (Sep 17, 2011)

Dug up this old thread based on @zinfit's post today Lithium and other EV materials. | Canadian Money Forum . Looking at the 10 yr FTT is quite cyclical which is to be expected with an industrial tied to commodities. My main concern is the D/E is a bit high for my comfort level. However, it's better than it was in 2019. Operating cashflow is also lacking. This may be a good value play. A lot of cap ex going into mining again now that commodity prices are elevated. Be curious to see what others think. Is it better to own CAT or FTT or neither.


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## newfoundlander61 (Feb 6, 2011)

Market Call - Shows - BNN Bloomberg Top pick by this guy.


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## londoncalling (Sep 17, 2011)

Here is a comparison longer term 

FTT $33.78 (▲2.61%) Finning International Inc. | Google Finance 


I don't believe the charts account for currency or dividends but it looks like CAT has been the better play between the two. FTT yield is higher and both have a history of dividend increases. I did some more digging this morning and although both are around 52 week lows, they haven't come down enough for me to put in an order. I believe there are some tax advantages to holding FTT but that is likely irrelevant for me as I would be holding in a registered account. If this week's bounce is not the bottom and industrials move lower I may take a closer look.


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