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Flowco Holdings Inc Class A (FLOC)
:FLOC
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Flowco Holdings Inc Class A
(NYSE:FLOC)
57Neutral
Positive Factors
Financial Performance
EBITDA margins are top-tier among peers and are expected to continue expanding, delivering attractive corporate returns.
Growth Potential
The company's leading position in high pressure gas lift and vapor recovery units is expected to drive double-digit revenue growth.
Market Position
Flowco is a key provider of production optimization, artificial lift, and methane abatement solutions, driving revenue generation through the full life of the well.
Negative Factors
Market Activity
The company reiterated its solid positioning, growth strategy, along with revenue/margin expectations despite somewhat softening NAM activity.
Flowco Holdings Inc Class A (FLOC) vs. S&P 500 (SPY)
Market Cap
$1.96B
Dividend YieldN/A
Average Volume (3M)577.21K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,283
SectorServices
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)2.23
Shares Outstanding25,721,620
10 Day Avg. Volume224,723
30 Day Avg. Volume577,209
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.80Price Target Upside48.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Flowco Holdings Inc Class A Business Overview & Revenue Model
Company DescriptionFlowco Holdings Inc Class A (FLOC) is a diversified holding company that operates across multiple sectors, including energy, technology, and infrastructure. The company focuses on acquiring and managing a portfolio of businesses that drive sustainable growth and deliver long-term value. Through strategic investments and partnerships, Flowco Holdings Inc aims to enhance operational efficiency and foster innovation within its subsidiaries.
How the Company Makes MoneyFlowco Holdings Inc makes money primarily through the acquisition and management of its subsidiary companies, which operate in various industries such as energy, technology, and infrastructure. The company generates revenue by leveraging the operational efficiencies and synergies of its diverse portfolio. Key revenue streams include dividends from subsidiary profits, capital gains from strategic sales, and earnings from operational improvements. Significant partnerships with industry leaders and financial institutions also contribute to Flowco's earnings by enhancing its investment capabilities and expanding its market reach.
Flowco Holdings Inc Class A Financial Statement Overview
Summary
Flowco Holdings Inc Class A demonstrates strong revenue growth and profitability indicators on the income statement, yet faces significant challenges on the balance sheet with high leverage and negative equity. Cash flow generation is a strength, showing good operational performance. The company should focus on improving its capital structure to mitigate financial risks and enhance long-term sustainability.Income Statement
Flowco Holdings Inc Class A shows a robust revenue growth with a significant increase from 2023 to 2024. The gross profit margin and net profit margin have improved, indicating enhanced operational efficiency. However, the margins could be higher compared to industry leaders, and the net profit margin is relatively modest. The EBIT and EBITDA margins are solid, reflecting strong core profitability.75
Positive
Balance Sheet
The company has a concerning debt-to-equity ratio due to negative stockholders' equity, posing a financial risk. While total assets have increased, the high level of total debt and negative equity are significant issues. The balance sheet reflects potential solvency risks that need addressing for long-term stability.40
Negative
Cash Flow
Operating cash flow has grown consistently, and the free cash flow is positive, indicating healthy cash generation capabilities. Although the free cash flow growth is notable, the free cash flow to net income ratio suggests room for improvement in cash conversion. Overall, cash flow stability is a positive aspect of the company's financials.65
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 535.28M | 243.32M | 148.61M | Gross Profit |
| 179.99M | 94.72M | 56.93M | EBIT |
| 116.74M | 78.33M | 42.70M | EBITDA |
| 208.95M | 121.75M | 78.72M | Net Income Common Stockholders |
| 80.25M | 58.09M | 32.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 4.62M | 0.00 | 0.00 | Total Assets |
| 1.59B | 392.09M | 366.21M | Total Debt |
| 676.69M | 243.08M | 223.17M | Net Debt |
| 672.08M | 243.08M | 223.17M | Total Liabilities |
| 749.84M | 258.34M | 238.13M | Stockholders Equity |
| -897.00M | 0.00 | 0.00 |
| Cash Flow | Free Cash Flow | |
| 88.70M | 38.35M | -40.40M | Operating Cash Flow |
| 179.38M | 81.86M | 66.56M | Investing Cash Flow |
| -94.43M | -42.67M | -106.93M | Financing Cash Flow |
| -80.33M | -39.19M | 40.37M |
Flowco Holdings Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Performance Comparison
FLOC
Flowco Holdings Inc Class A
21.32
-8.68
-28.93%
CON
Concentra Group Holdings Parent, Inc.
21.70
-1.02
-4.49%
ECG
Everus Construction Group, Inc.
45.35
-4.65
-9.30%
Flowco Holdings Inc Class A Earnings Call Summary
Earnings Call Date:Mar 18, 2025
(Q4-2024)
| % Change Since: -6.50%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Positive
Flowco's earnings call reflects strong organic revenue growth and successful execution of strategic initiatives, such as the IPO and debt reduction, while addressing challenges in the Natural Gas Technologies segment and acknowledging increased costs associated with public company operations. The company remains optimistic about future growth and market positioning.Q4-2024 Updates
Positive Updates
Pro Forma Revenue Growth
Flowco achieved a 10% increase in pro forma revenue in 2024 compared to 2023, while U.S. oil production grew only 2% to 3%.
Strong Adjusted EBITDA Performance
Fourth-quarter consolidated adjusted EBITDA was $73.8 million, showcasing strong execution in business segments, with margins increasing by 50 basis points.
Successful IPO and Debt Reduction
Flowco executed a successful IPO in January 2025, using proceeds to pay down borrowings, reducing revolving credit facility debt to $195.7 million with availability of $527.7 million.
Growth in Production Solutions Segment
Production Solutions revenue was $113.3 million in Q4, with adjusted segment EBITDA of $49.9 million, showing increases of 1.5% and 5.2% respectively from the third quarter.
Negative Updates
Revenue Decrease in Natural Gas Technologies
Natural Gas Technologies revenue decreased by 6.5% to $72.7 million in Q4 due to the completion of a large customer project.
Costs Associated with Public Company Infrastructure
Flowco incurred $3.9 million of costs related to establishing public company infrastructure in the fourth quarter.
Potential Tax Rate Increase
Following the IPO, Flowco will become a federal and state income taxpayer, anticipating a blended tax rate in the low to mid-20% range.
Company Guidance
During the conference call for Flowco Holdings Inc., the company provided financial guidance and updates for 2024 and into 2025. Flowco reported a fourth-quarter adjusted net income of $28.8 million on revenues of $186 million, with a slight revenue decline of 1.8% quarter-over-quarter. However, the adjusted EBITDA remained stable at $73.8 million, with margins increasing by 50 basis points. The company highlighted a 10% pro forma revenue growth for 2024 compared to a 2-3% growth in U.S. oil production. For 2025, Flowco anticipates maintaining a similar level of capital investment as in 2024, mostly directed towards their rental fleet, targeting returns exceeding 20%. They expect a first-quarter 2025 adjusted EBITDA between $74 million and $78 million. Additionally, Flowco is considering initiating a sustainable dividend, with a current borrowing base of $723.5 million and availability of $527.7 million under their revolving credit facility.Flowco Holdings Inc Class A Corporate Events
DividendsBusiness Operations and Strategy
Flowco Holdings Announces First Quarterly Cash Dividend
Positive
May 2, 2025
On May 2, 2025, Flowco Holdings Inc. announced its first quarterly cash dividend of $0.08 per share for its Class A common stock, payable on May 28, 2025, to shareholders of record as of May 14, 2025. This move, reflecting the company’s strong financial position and long-term strategy, aims to deliver value to shareholders while continuing to invest in future growth. The dividend declaration underscores Flowco’s commitment to maintaining regular payouts, although future dividends will depend on various factors, including financial performance and capital requirements.
Spark’s Take on FLOC Stock
According to Spark, TipRanks’ AI Analyst, FLOC is a Neutral.
Flowco Holdings Inc Class A’s overall stock score is driven by strong revenue growth and strategic initiatives, but is hampered by significant balance sheet risks and technical analysis indicating potential short-term weaknesses. The absence of valuation metrics adds uncertainty to the stock’s relative appeal.
To see Spark’s full report on FLOC stock, click here.
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.