Finning gains with high oil prices

Article Excerpt

FINNING INTERNATIONAL INC. $25 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 156.2 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South America, the U.K. and Ireland. Its main customers are in the oil and gas, mining, forestry-products and construction industries. The company’s outlook remains bright, as higher prices for oil and other commodities are spurring greater demand for its equipment and services. In fact, Finning’s earnings will probably rise 19% in 2022 to $2.60 a share, and the stock trades a moderate 9.6 times that estimate. Finning also raised your quarterly dividend by 4.9% with the June 2022 payment, to $0.236 a share from $0.225. The new annual rate of $0.944 yields 3.8%. Finning is a buy. buy…

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