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Finning International Inc. (TSE:FTT): The Best Of Both Worlds

Simply Wall St

I’ve been keeping an eye on Finning International Inc. (TSE:FTT) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FTT has a lot to offer. Basically, it is a highly-regarded dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Finning International here.

Established dividend payer with adequate balance sheet

FTT’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that FTT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. FTT’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps FTT expand.

TSX:FTT Historical Debt, March 12th 2019

Income investors would also be happy to know that FTT is a great dividend company, with a current yield standing at 3.3%. FTT has also been regularly increasing its dividend payments to shareholders over the past decade.

TSX:FTT Historical Dividend Yield, March 12th 2019

Next Steps:

For Finning International, I’ve put together three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for FTT’s future growth? Take a look at our free research report of analyst consensus for FTT’s outlook.
  2. Historical Performance: What has FTT’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FTT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.