FMC Technologies Inc. Stock Upgraded (FTI)

NEW YORK ( TheStreet) -- FMC Technologies (NYSE: FTI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • FTI's revenue growth has slightly outpaced the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 21.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FMC TECHNOLOGIES INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FMC TECHNOLOGIES INC increased its bottom line by earning $1.65 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.65).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 18.7% when compared to the same quarter one year prior, going from $94.30 million to $111.90 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, FMC TECHNOLOGIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. It operates in three segments: Subsea Technologies, Surface Technologies, and Energy Infrastructure. The company has a P/E ratio of 25.8, above the average energy industry P/E ratio of 25.6 and above the S&P 500 P/E ratio of 17.7. FMC has a market cap of $10.88 billion and is part of the basic materials sector and energy industry. Shares are down 11.8% year to date as of the close of trading on Monday.

You can view the full FMC Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
null

If you liked this article you might like

TechnipFMC Slides in Paris Ahead of NYSE Debut as Exane BNP Predicts Challenges

Baker Hughes Reports U.S. Oil Producers Ramp Activity Despite OPEC Concerns

Baker Hughes Rig Count Up 14 as Oilfield Services Stocks Tumble

Closing Bell: American Girl Sales Boost Mattel; Crude Closes Under $51

FMC Technologies (FTI) Stock Gains on Q3 Earnings, Upgrade