Stock Analysis & Valuation TechnipFMC plc (FTI.PA)

• Previous Close: €5.91
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	11.90	101
Graham Formula	40.60	587

Strategic Investment Analysis

Company Overview

TechnipFMC plc (FTI.PA) is a global leader in oil and gas projects, technologies, and services, specializing in offshore and onshore energy solutions. Headquartered in London, the company operates through two key segments: Subsea and Surface Technologies. The Subsea segment focuses on engineering, procurement, and project management for offshore oil and gas exploration, while the Surface Technologies segment provides wellhead systems, high-pressure valves, and pumps for land and shallow water operations. With a strong presence in Europe, the Americas, Asia Pacific, Africa, and the Middle East, TechnipFMC is strategically positioned to serve major energy markets. The company has also formed a strategic alliance with Talos Energy Inc. to advance Carbon Capture and Storage (CCS) projects, aligning with the global shift toward sustainable energy solutions. As a key player in the Oil & Gas Equipment & Services sector, TechnipFMC leverages its technological expertise and global footprint to drive innovation in energy infrastructure.

Investment Summary

TechnipFMC presents a mixed investment profile with both opportunities and risks. The company reported €6.4 billion in revenue for FY 2021, with a net income of €87 million, reflecting modest profitability in a challenging energy market. Its beta of 2 indicates high volatility, typical for oilfield services firms exposed to commodity price fluctuations. Positive operating cash flow of €781.3 million and a solid cash position of €1.33 billion provide financial resilience, though total debt of €2 billion warrants monitoring. The company’s strategic focus on subsea and surface technologies, along with its CCS initiatives, positions it for long-term growth in energy transition markets. However, reliance on oil and gas capex cycles remains a key risk. Investors should weigh its technological leadership against sector-wide cyclical pressures.

Competitive Analysis

TechnipFMC holds a competitive edge in integrated subsea and surface technologies, differentiating itself through end-to-end project execution capabilities. Its Subsea segment benefits from deepwater expertise, a critical advantage as offshore exploration moves into more challenging environments. The Surface Technologies segment’s focus on high-pressure equipment aligns with the growing demand for shale and unconventional resource development. The company’s strategic alliance for CCS projects further enhances its positioning in the energy transition landscape. However, competition is intense, with rivals like Schlumberger and Halliburton dominating broader oilfield services, while specialized subsea players such as Subsea 7 and Saipem compete directly in offshore markets. TechnipFMC’s ability to maintain margins hinges on operational efficiency and technological differentiation, particularly in subsea robotics and digital solutions. Its geographic diversification mitigates regional risks but exposes it to global energy investment volatility. The firm’s mid-sized scale allows agility but may limit bargaining power against larger integrated service providers.

Major Competitors

• Schlumberger Limited (SLB): Schlumberger is the world’s largest oilfield services company, with unparalleled scale and technology breadth. Its strengths lie in integrated drilling and reservoir management solutions, though it lacks TechnipFMC’s subsea specialization. Weaknesses include high exposure to North American shale volatility.
• Halliburton Company (HAL): Halliburton excels in pressure pumping and completions, dominating the North American market. Its surface technology offerings overlap with TechnipFMC, but it has limited subsea capabilities. Recent cost-cutting has improved margins, but debt levels remain elevated.
• Subsea 7 S.A. (SUBC.OL): Subsea 7 is a pure-play subsea engineering leader, directly competing with TechnipFMC’s Subsea segment. It has a strong backlog but lacks surface technology diversification. Its renewable energy ventures provide a hedge against oil and gas downturns.
• Saipem S.p.A. (SPM.MI): Saipem competes in subsea and offshore drilling, with a strong Mediterranean presence. Financial instability and recent restructuring are weaknesses, but its EPCI (Engineering, Procurement, Construction, Installation) capabilities rival TechnipFMC’s.
• Baker Hughes Company (BKR): Baker Hughes balances oilfield services with energy transition technologies (e.g., hydrogen, LNG). Its subsea offerings are less integrated than TechnipFMC’s, but its digital solutions (BHC3) are a strength. Exposure to gas markets adds cyclical risk.