FTSI FTS International stock Story

FTSI -  USA Stock  

USD 25.75  0.05  0.19%

As many millenniums are trying to avoid energy space, it makes sense to concentrate on FTS International a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is FTS International valuation justified? Here we go over the firm perspective on valuation to give you a better outlook on taking a position in this stock.
Published over six months ago
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Is FTS International (NYSE:FTSI) ready for a correction?
FTS International currently holds 8.4 M in liabilities. The entity has a current ratio of 5.37, suggesting that it is liquid enough and is able to pay its financial obligations when due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. FTS International has an asset utilization ratio of 47.01 percent. This implies that the company is making $0.47 for each dollar of assets. An increasing asset utilization means that FTS International is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of FTS International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of FTS International based exclusively on its fundamental and basic technical indicators. By analyzing FTS International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of FTS International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of FTS International. We calculate exposure to FTS International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to FTS International's related companies.

FTS International Investment Alerts

FTSI FTS International investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring FTS International performance across your portfolios.Please check all investment alerts for FTSI FTS International

FTS International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare FTSI FTS International value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across FTS International competition to find correlations between indicators driving the intrinsic value of FTSI FTS International.

How FTSI FTS International utilizes its cash?

To perform a cash flow analysis of FTS International, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash FTS International is receiving and how much cash it distributes out in a given period. The FTS International cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
FTS International Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 142.49 Million

Sale by Temasek Holdings Private Ltd of 483860 shares of FTS International

Legal trades by FTS International insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
FTS International insider trading alert for sale of class a common stock by Temasek Holdings Private Ltd, the corporate stakeholder, on 4th of February 2021. This event was filed by Fts International Inc with SEC on 2021-02-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

The firm reported the previous year's revenue of 355.4 M. Net Loss for the year was (144.1 M) with profit before overhead, payroll, taxes, and interest of 197.7 M.

Margins Breakdown

FTS International profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or FTS International itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of FTS International profit margins.
EBITDA Margin0.068
Gross Margin0.25
Profit Margin(0.1)

FTS International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 6 years. The current value of FTS International Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 53,084,211. Moreover, FTS International Average Equity is increasing over the last 5 years. The previous year's value of FTS International Average Equity was 52,733,553.

Are FTS International technical ratios showing a throwback?

Treynor ratio is down to 0.26. It may hint to a possible volatility drop. FTS International is displaying above-average volatility over the selected time horizon. Investors should scrutinize FTS International independently to ensure intended market timing strategies are aligned with expectations about FTS International volatility.

While many other companies under the oil & gas equipment & services industry are still a bit expensive, FTS International may offer a potential longer-term growth to stockholders. To summarize, as of the 20th of November 2020, we see that FTS International follows the market closely. The company is overvalued with quite high probability of distress within the next 24 months. Our final 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of FTS International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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