FTT is now trading at 9.1x times forward P/E. In the most recent quarter, FTT’s revenue grew 9% to $2.44B, slightly missing estimates of $2.46B, and EPS was $1.45, beating estimates of $1.32. The balance sheet has a net debt of $2.6B and a net debt/EBITDA of 2.1x. Based on consensus estimates, sales are expected to grow by 17% this year and then normalize to around 3% going forward. Overall, an okay quarter, the share price was under pressure recently after earnings largely due to the weakness in the company’s backlog, especially in Canada, which may signal slower growth ahead. FTT is an okay name, but we prefer TIH due to its more stable growth over the years and management track record of execution. The stock is certainl priced well but we would like to see better growth and execution.
5i Research Answer: