November 9, 2023
Top 10 Stock TechnipFMC Hold Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View TechnipFMC Hold

360 METRICS	November 9, 2023
VALUE
VALUE	11
GROWTH
GROWTH	100
SAFETY
SAFETY	31
SENTIMENT
SENTIMENT	33
360° VIEW
360° VIEW	39

ANALYSIS: With an Obermatt 360° View of 39 (better than 39% compared with alternatives), overall professional sentiment and financial characteristics for the stock TechnipFMC are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for TechnipFMC. The consolidated Growth Rank has a good rank of 100, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. It ranks higher than 100% of competitors in the same industry. The other indicators are below average, namely the Value, Safety, and Sentiment Ranks.The Value Rank at 11 means that the share price of TechnipFMC is on the high side compared with its peers regarding revenues, profits, and invested capital. The stock price is higher than for 89% of alternative stocks in the same industry. The consolidated Safety Rank has a riskier rank of 31, which means that the company has a riskier financing structure than 69% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. The consolidated Sentiment Rank also has a low rank of 33, indicating professional investors are more pessimistic about the stock than for 67% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 39, TechnipFMC is worse than 61% of all alternative stock investment opportunities based on the Obermatt Method. As only one of the consolidated Obermatt Ranks exhibits excellent performance, namely the above-average growth (Growth Rank of 100), it is a riskier stock investment proposition. Aside from the critical professional market sentiment (Sentiment Rank of 33), the company is rather risky when it comes to financing (Safety Rank of 31). The negative market view on TechnipFMC may be due to the high stock price (low value). A growth company like this may get too expensive at one point in time. If too many investors are desperate to join the party, they may drive stock prices above reasonable levels. While it is typical for growth companies to have low value, because investors are willing to pay more for companies that are expected to have high growth, the crucial question is: how much more do you pay for the stock of TechnipFMC compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one minus the growth rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value (even though it is lower than 50). As market sentiment is critical, you should be careful with paying more than market-average for this stock and conduct further research into the company's future growth potential. ...read more

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Sentiment Strategy: Professional Market Sentiment for TechnipFMC only reserved

SENTIMENT METRICS	November 9, 2023
ANALYST OPINION
ANALYST OPINION	68
OPINIONS CHANGE
OPINIONS CHANGE	66
PRO HOLDINGS
PRO HOLDINGS	24
MARKET PULSE
MARKET PULSE	26
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	33

ANALYSIS: With an Obermatt Sentiment Rank of 33 (better than 33% compared with alternatives), overall professional sentiment and engagement for the stock TechnipFMC is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for TechnipFMC. Analyst Opinions are at a rank of 68 (better than 68% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive and has a rank of 66 which means that currently, stock research experts are getting even more optimistic about investments in TechnipFMC. But Market Pulse has a low rank of 26, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 74% of competitors). This is an essential sign of caution, as it could be the forebearer of bad news. Professional Investors are also somewhat absent with a rank of 24, which means that, currently, professional investors hold less stock in this company than in 76% of alternative investment opportunities. Pros tend to invest in other companies. This is expected if the company is of a smaller size (medium or smaller). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 33 (less encouraging than 67% compared with investment alternatives), TechnipFMC has a reputation among professional investors that is below that of its competitors. While the general news feeds in the professional market are negative, the analyst recommendations are optimistic about the company, and even increase their ratings despite the negative news. This is an ambiguous situation with positive and negative signals from the professional side. Investors should be on the lookout for negative news but not worry too much about it as long as the overall news is still positive. ...read more

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Value Strategy: TechnipFMC Stock Price Value low

VALUE METRICS	November 9, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	40
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	5
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12
DIVIDEND YIELD
DIVIDEND YIELD	26
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	11

ANALYSIS: With an Obermatt Value Rank of 11 (worse than 89% compared with alternatives), TechnipFMC shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for TechnipFMC. Price-to-Sales is 40 which means that the stock price compared with what market professionals expect for future profits is higher than 60% of comparable companies, indicating a low value concerning TechnipFMC's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 12, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of TechnipFMC. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 5 and Dividend Yield, which is lower than 74% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 11, is a sell recommendation based on TechnipFMC's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for TechnipFMC? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as TechnipFMC? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. TechnipFMC may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: TechnipFMC Growth Momentum high

GROWTH METRICS	November 9, 2023
REVENUE GROWTH
REVENUE GROWTH	78
PROFIT GROWTH
PROFIT GROWTH	98
CAPITAL GROWTH
CAPITAL GROWTH	78
STOCK RETURNS
STOCK RETURNS	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2023, TechnipFMC shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for TechnipFMC. Sales Growth has a value of 78, which means that, currently, professionals expect the company to grow more than 78% of its competitors. The same is valid for Profit Growth with a value of 98 and for Capital Growth with 78. In addition, Stock Returns had an above-average rank value of 100, which means they have been higher than 100% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, TechnipFMC exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more

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Safety Strategy: TechnipFMC Debt Financing Safety below-average

SAFETY METRICS	November 9, 2023
LEVERAGE
LEVERAGE	63
REFINANCING
REFINANCING	28
LIQUIDITY
LIQUIDITY	18
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	31

ANALYSIS: With an Obermatt Safety Rank of 31 (better than 31% compared with alternatives), the company TechnipFMC has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of TechnipFMC is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for TechnipFMC and the other two below average. Leverage is at a rank of 63 meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors.Refinancing is at a rank of 28, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 72% of its competitors. Liquidity is at a rank of 18, meaning that the company generates less profit to service its debt than 82% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 31 (worse than 69% compared with alternatives), TechnipFMC has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of TechnipFMC are on the safer side. ...read more

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Combined financial peformance: TechnipFMC Below-Average Financial Performance

COMBINED PERFORMANCE	November 9, 2023
VALUE
VALUE	11
GROWTH
GROWTH	100
SAFETY
SAFETY	18
COMBINED
COMBINED	44

ANALYSIS: With an Obermatt Combined Rank of 44 (worse than 56% compared with investment alternatives), TechnipFMC (Oil & Gas Equipment, France) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of TechnipFMC are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives), and are riskily financed (Safety Rank of 31, which means above-average debt burdens) but show above-average growth (Growth Rank of 100). ...read more

RECOMMENDATION: A Combined Rank of 44, is a hold recommendation based on TechnipFMC's financial characteristics. As the company TechnipFMC shows low value with an Obermatt Value Rank of 11 (89% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 100% of comparable companies (Obermatt Growth Rank is 100). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 31 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for TechnipFMC, even a low-value company (in terms of its key financial indicators) can be a good investment. ...read more

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