Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $77.06M
• Dividend Yield: N/A
• Average Volume (3M): 326.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -4.78%
• EPS Growth: -1359.72%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 31,074,438
• 10 Day Avg. Volume: 216,379
• 30 Day Avg. Volume: 326,679
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: -17.75
• 1Y Price Target: $4.00
• Price Target Upside: 61.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $2.50 ▲(0.81% Upside)

Fuel Tech's overall stock score reflects significant financial and operational challenges, with declining revenues and persistent losses being the most impactful factors. Technical indicators suggest bearish momentum, and valuation metrics are poor due to ongoing losses. While there are some positive aspects, such as growth opportunities in AI data centers and a strong cash position, these are overshadowed by the company's current difficulties.

Positive Factors

Strong Financial Position

A strong cash position and no long-term debt provide financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Increase in Gross Margin

Improved gross margins indicate better cost management and pricing power, contributing to potential profitability improvements over time.

Growth in AI Data Centers

The focus on AI data centers opens new revenue streams and aligns with industry trends, positioning the company for future growth in a high-demand sector.

Negative Factors

Decline in Quarterly Revenue

The decline in revenue signals potential challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Operating Loss

Rising operating losses highlight inefficiencies and cost challenges, which could hinder the company's ability to achieve profitability and invest in growth.

Reduced Revenue Guidance

Lower revenue guidance reflects uncertainty and potential delays in project execution, which could affect investor confidence and strategic planning.

Fuel Tech Business Overview & Revenue Model

Company Description

Fuel Tech, Inc. (FTEK) is a technology company focused on providing advanced equipment and solutions for air pollution control and energy efficiency. The company operates primarily in the environmental solutions sector, offering proprietary technologies and products designed to improve the performance of industrial processes while reducing emissions. Fuel Tech's core offerings include its NOx reduction technologies, fuel additives, and other innovative solutions that cater to various industries, including power generation, cement production, and other heavy industrial sectors.

How the Company Makes Money

Fuel Tech generates revenue through the sale of its proprietary technologies and services, which include system designs, installation, and ongoing support for its air pollution control solutions. Key revenue streams include the sale of NOx reduction systems, fuel additives, and consulting services. The company also earns revenue from long-term contracts for maintenance and operational support, which provide a steady income stream. Significant partnerships with industrial clients, especially in the power generation sector, enhance Fuel Tech's market presence and contribute to its earnings by providing access to larger projects and contracts focused on compliance with environmental regulations.

Fuel Tech Financial Statement Overview

Summary

Fuel Tech faces significant financial challenges, with declining revenues and persistent profitability issues. Despite a strong balance sheet with low leverage, negative cash flows and ongoing losses indicate operational difficulties. Stability in gross margins offers some hope, but a strategic turnaround is essential.

Income Statement

Fuel Tech has faced declining revenue over the years, with a recent drop from $27.1M in 2023 to $25.1M in 2024. The gross profit margin showed stability at around 42%, but the company has consistently reported negative EBIT and net income, indicating profitability challenges. The net profit margin was -7.7% in 2024, reflecting ongoing losses.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio of approximately 86%. However, the debt-to-equity ratio remains low at 0.01, indicating minimal leverage. Despite a solid asset base, the company has faced declining equity over the years.

Cash Flow

Fuel Tech's cash flow performance has been weak, with negative operating cash flow in 2024 at -$3.4M. The free cash flow has also been negative, dropping from $0.28M in 2023 to -$3.4M in 2024. The operating cash flow to net income ratio suggests cash generation issues relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.07M	25.13M	27.08M	26.94M	24.26M	22.55M
Gross Profit	10.96M	10.62M	11.66M	11.64M	11.90M	10.64M
EBITDA	-3.13M	-1.41M	-1.11M	-931.00K	-748.00K	-3.37M
Net Income	-3.23M	-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet
Total Assets	47.00M	48.80M	50.39M	50.12M	49.97M	30.09M
Cash, Cash Equivalents and Short-Term Investments	23.01M	18.69M	29.71M	26.31M	35.89M	10.64M
Total Debt	696.00K	625.00K	614.00K	191.00K	235.00K	1.94M
Total Liabilities	6.42M	6.84M	6.67M	5.25M	3.77M	7.77M
Stockholders Equity	40.59M	41.95M	43.71M	44.88M	46.20M	22.32M
Cash Flow
Free Cash Flow	544.00K	-3.81M	278.00K	-4.34M	677.00K	-2.95M
Operating Cash Flow	718.00K	-3.43M	696.00K	-4.14M	761.00K	-2.71M
Investing Cash Flow	-432.00K	-5.44M	-6.44M	-9.48M	-84.00K	-247.00K
Financing Cash Flow	-222.00K	-95.00K	42.00K	-17.00K	23.98M	1.28M

Fuel Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Negative. The current price of 2.48 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 3.01, and above the 200-day MA of 1.96, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 33.16 is Neutral, neither overbought nor oversold. The STOCH value of 10.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEK.

Fuel Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	―	$9.29M	12.83	―	―	-14.25%	-59.84%
CLIR	―	$45.61M	-7.74	-46.19%	―	19.03%	11.70%
FTEK	―	$77.06M	-23.60	-7.69%	―	-4.78%	-1359.72%
TOMZ	―	$18.68M	―	-94.24%	―	-12.72%	-36.80%
LIQT	―	$22.59M	-1.75	-78.97%	―	-12.76%	15.23%
SCWO	―	$64.65M	-3.40	-160.82%	―	―	―

Fuel Tech Corporate Events

Fuel Tech Inc. Faces Persistent Risks: Annual Report Highlights Ongoing Challenges

Fuel Tech Inc. continues to face business risks as outlined in their Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with no material changes reported. This suggests that the company is still navigating the same challenges and uncertainties that were previously identified, which could impact its financial performance and strategic objectives. Stakeholders should remain vigilant and consider these persistent risks when evaluating the company’s future prospects. The unchanged risk factors highlight the importance of ongoing risk management and mitigation strategies for Fuel Tech Inc.

Fuel Tech Reports Q2 2025 Financial Results

Fuel Tech, Inc. is a technology company specializing in emissions control systems and water treatment technologies for utility and industrial applications. The company operates in the environmental technology sector and is known for its advanced engineering solutions.

Fuel Tech Inc. Earnings Call: Mixed Prospects Ahead

The recent earnings call for Fuel Tech Inc. painted a mixed picture of the company’s current financial health and future prospects. While the company maintains a strong financial position and sees promising opportunities in the data center sector, challenges such as revenue declines in the APC segment, an overall decrease in consolidated revenues, increased operating loss, and reduced revenue guidance for 2025 present a less than wholly positive outlook. Despite these hurdles, the potential for growth, especially in data centers, remains significant.