Forgent Power Solutions, Inc. Fundamental Analysis (NYSE: FPS)
Forgent Power Solutions, Inc. Fundamental Analysis (NYSE: FPS)
Forgent Power Solutions, Inc. (NYSE: FPS) shows moderate financial fundamentals with a PE ratio of 136.14, profit margin of 5.76%, and ROE of 18.39%. The company generates $1.2B in annual revenue with strong year-over-year growth of 88.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FPS's fundamental strength across five key dimensions:
Efficiency Score
WeakFPS struggles to generate sufficient returns from assets.
Valuation Score
ModerateFPS shows balanced valuation metrics.
Growth Score
ModerateFPS shows steady but slowing expansion.
Financial Health Score
ModerateFPS shows balanced financial health with some risks.
Profitability Score
WeakFPS struggles to sustain strong margins.
Key Financial Metrics
Is FPS Expensive or Cheap?
P/E Ratio
FPS trades at 136.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FPS's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Forgent Power Solutions, Inc. at 20.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 40.27 times EBITDA. This signals the market has high growth expectations.
How Well Does FPS Make Money?
Net Profit Margin
For every $100 in sales, Forgent Power Solutions, Inc. keeps $5.76 as profit after all expenses.
Operating Margin
Core operations generate 14.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.39 in profit for every $100 of shareholder equity.
ROA
Forgent Power Solutions, Inc. generates $3.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Forgent Power Solutions, Inc. generates limited operating cash flow of $75.91M, signaling weaker underlying cash strength.
Free Cash Flow
Forgent Power Solutions, Inc. generates weak or negative free cash flow of $-23.07M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
FPS converts -0.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
136.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FPS Stacks Against Its Sector Peers
| Metric | FPS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 136.14 | 27.52 | Worse (Expensive) |
| ROE | 18.39% | 1152.00% | Weak |
| Net Margin | 5.76% | -298.00% (disorted) | Weak |
| Debt/Equity | 1.25 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.54 | 21.99 | Neutral |
| ROA | 3.64% | -1345490.00% (disorted) | Weak |
FPS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Forgent Power Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
493.91%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
448.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1502.38%
Industry Style: Cyclical, Value, Infrastructure
High Growth