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Forum Energy Tech (FET)
NYSE:FET
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Forum Energy Tech
(NYSE:FET)
Rating:53Neutral
Price Target:
$16.50
▲( 13.64% Upside)
Forum Energy Tech (FET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$186.41M
Dividend YieldN/A
Average Volume (3M)67.38K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth7.31%
EPS Growth-326.94%
CountryUS
Employees1,800
SectorEnergy
Sector Strength40
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding12,369,625
10 Day Avg. Volume55,841
30 Day Avg. Volume67,378
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)0.53
Price to Sales (P/S)0.00
P/FCF Ratio1.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Forum Energy Tech Business Overview & Revenue Model
Company DescriptionForum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and protection products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and complementary subsea technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping, hydraulic fracturing and flowback services markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
How the Company Makes MoneyForum Energy Technologies makes money through the sale and rental of specialized equipment and technologies used in the exploration and production of oil and gas. Key revenue streams include the manufacturing and distribution of drilling and subsea equipment, as well as providing related services such as equipment maintenance and technical support. FET's earnings are significantly influenced by the level of activity in the oil and gas sector, partnerships with major exploration and production companies, and the company's ability to innovate and offer solutions that meet the evolving needs of the energy industry. Additionally, FET may engage in service contracts and collaborative projects that further bolster its revenue.
Forum Energy Tech Financial Statement Overview
Summary
Forum Energy Tech faces financial challenges, particularly in profitability, as shown by a negative net income and declining margins. The balance sheet shows manageable leverage but potential equity stability risks. The cash flow situation is more promising, with positive free cash flow and efficient cash conversion.Income Statement
The income statement shows a challenging financial situation with consistent negative net income and declining EBIT and EBITDA margins over several periods. Gross profit margin remains relatively stable, but overall revenue growth has stagnated. The recent TTM data indicates a slight reduction in gross profit compared to the previous annual report, highlighting potential difficulties in maintaining profitability.45
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio has declined due to decreasing stockholders' equity. The company maintains a reasonable level of cash and equivalents. Despite some financial restructuring, the balance sheet reflects a mixed picture with potential risks around equity stability.55
Neutral
Cash Flow
Cash flow statements indicate positive free cash flow in the recent TTM period, a positive sign. Operating cash flow has improved, but the company experienced fluctuations in free cash flow in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion despite net losses.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 807.29M | 816.42M | 738.86M | 699.90M | 541.10M | 512.50M | Gross Profit |
| 249.62M | 255.03M | 204.15M | 188.50M | 123.30M | -11.00M | EBIT |
| -79.70M | -86.77M | 20.72M | 9.00M | -45.60M | -231.60M | EBITDA |
| -45.29M | -43.22M | 45.21M | 46.03M | -7.82M | -28.50M | Net Income Common Stockholders |
| -123.91M | -135.33M | -18.88M | 3.71M | -82.70M | -96.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.10M | 44.66M | 46.16M | 51.00M | 46.90M | 128.60M | Total Assets |
| 790.10M | 815.95M | 821.06M | 831.30M | 791.30M | 889.90M | Total Debt |
| 1.80M | 261.54M | 201.40M | 239.90M | 233.30M | 294.70M | Net Debt |
| -29.30M | 216.88M | 155.24M | 188.90M | 186.40M | 166.10M | Total Liabilities |
| 470.10M | 496.05M | 408.43M | 524.20M | 462.20M | 483.70M | Stockholders Equity |
| 320.00M | 319.90M | 412.63M | 307.10M | 329.10M | 406.20M |
| Cash Flow | Free Cash Flow | ||||
| 98.19M | 84.05M | 239.00K | -24.60M | -18.20M | 1.70M | Operating Cash Flow |
| 96.47M | 92.19M | 8.18M | -17.10M | -15.80M | 3.90M | Investing Cash Flow |
| 13.19M | -137.53M | -6.57M | 27.10M | 10.70M | 108.30M | Financing Cash Flow |
| -127.60M | 45.24M | -7.58M | -5.00M | -76.20M | -41.80M |
Forum Energy Tech Technical Analysis
Negative
14.52
Price Trends
16.57
Negative
17.18
Negative
16.38
Negative
Market Momentum
-0.23
Negative
43.77
Neutral
29.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FET, the sentiment is Negative. The current price of 14.52 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 16.57, and below the 200-day MA of 16.38, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 29.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FET.
Forum Energy Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $318.76M | 17.74 | 6.77% | ― | 22.64% | 78.46% | |
66 Neutral | $459.33M | 32.94 | 12.80% | ― | 11.97% | 188.31% | |
60 Neutral | $280.88M | 50.40 | 0.75% | ― | -9.04% | ― | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% | |
53 Neutral | $186.41M | ― | -32.34% | ― | 7.31% | -326.94% | |
50 Neutral | $81.84M | ― | -11.88% | ― | -14.52% | -204.65% | |
42 Neutral | $23.87M | ― | 73.91% | ― | -4.38% | -3.77% |
* Energy Sector Average
Performance Comparison
FET
Forum Energy Tech
14.52
-3.02
-17.22%
FTK
Flotek
15.04
11.31
303.22%
NGS
Natural Gas Services Group
24.01
2.10
9.58%
OIS
Oil States International
4.37
-0.16
-3.53%
GEOS
Geospace Technologies
6.01
-4.04
-40.20%
NINE
Nine Energy Service
0.51
-1.13
-68.90%
Forum Energy Tech Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -4.10%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and challenging aspects. The company showed strong performance in terms of free cash flow generation, order increases, and subsea segment strength. However, significant challenges exist due to external factors like tariffs, declining oil prices, and potential impacts on the North American market. The company's proactive cost management and share buyback efforts are positive, yet overshadowed by economic uncertainties.Q1-2025 Updates
Positive Updates
Positive Free Cash Flow
Generated $7 million in free cash flow in the first quarter, marking the seventh consecutive quarter of positive free cash flow generation. The company remains confident in its full-year free cash flow guidance of $40 million to $60 million.
Increase in Orders and Revenue
Orders increased by 6% to $201 million with a book-to-bill ratio of 104%. Revenue for the quarter was $193 million, and EBITDA was $20 million.
Strong Performance in Subsea Segment
Subsea orders returned to customary levels with meaningful bookings, including $8 million of subsea orders in April. This reflects the strength of the offshore market.
Efforts in Cost Management
Initiatives to eliminate $10 million of annualized costs and a focus on inventory management have helped align the business with market conditions.
Share Buybacks and Debt Reduction
Repurchased roughly 1% of outstanding shares for $2 million and plans to utilize 50% of free cash flow for further debt reduction.
Negative Updates
Impact of Trade and Tariff Policies
The radical upheaval in US trade and tariff policies has created significant economic uncertainty, leading to increased costs and lower demand in certain product lines.
Decline in Oil Prices
Dramatic decline in oil prices, hovering near four-year lows, putting pressure on activity-based sales which are highly correlated to rig count.
Challenges in Valve Solutions
Significant impact on demand for valves product line due to tariffs on Chinese imports, leading to a buyer strike and reduced orders.
Uncertainty in North American Market
Anticipated decline in North American rig count and overall global drilling and completions activity, potentially impacting revenue in the second half of the year.
Company Guidance
During the First Quarter 2025 earnings call for Forum Energy Technologies Inc., management provided guidance with several key metrics and insights into their strategy amidst current market conditions. The company anticipates full-year EBITDA around $85 million, assuming commodity prices remain at current levels. They are proactively managing costs and inventory, having already eliminated $10 million in annualized costs and generated approximately $40 million from inventory reductions in 2024, aiming for $40 million to $60 million in full-year free cash flow. The first quarter results showed revenue of $193 million and EBITDA of $20 million, with a 6% increase in orders totaling $201 million, leading to a book-to-bill ratio of 104%. Additionally, FET ended the first quarter with a net debt of $146 million and a net leverage ratio of 1.56 times, maintaining $108 million of liquidity with no debt maturities until 2028. Looking ahead, they expect second-quarter revenue between $180 million to $200 million and EBITDA ranging from $18 million to $22 million. The company remains committed to share buybacks and debt reduction, utilizing 50% of free cash flow for each, provided they maintain a net leverage ratio below 1.5 times.Forum Energy Tech Corporate Events
Executive/Board ChangesShareholder Meetings
Forum Energy Tech Appoints New Chairman of the Board
Positive
May 13, 2025
On May 9, 2025, Forum Energy Technologies held its Annual Meeting where stockholders approved several key proposals, including an amendment to increase authorized shares of common stock and the election of Class I directors. Additionally, on May 12, 2025, the company announced the appointment of Michael McShane as the non-executive Chairman of the Board, succeeding C. Christopher Gaut, who retired after over 20 years of service. These developments are expected to impact the company’s governance and strategic direction positively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.