Flotek Industries, Inc.
Flotek Industries, Inc. Fundamental Analysis
Flotek Industries, Inc. (FTK) shows moderate financial fundamentals with a PE ratio of 18.08, profit margin of 14.48%, and ROE of 30.71%. The company generates $0.2B in annual revenue with weak year-over-year growth of -0.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.7/100 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 FTK's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFTK demonstrates superior asset utilization.
Valuation Score
ExcellentFTK trades at attractive valuation levels.
Growth Score
WeakFTK faces weak or negative growth trends.
Financial Health Score
ExcellentFTK maintains a strong and stable balance sheet.
Profitability Score
WeakFTK struggles to sustain strong margins.
Key Financial Metrics
Is FTK Expensive or Cheap?
P/E Ratio
FTK trades at 18.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FTK's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Flotek Industries, Inc. at 5.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.75 times EBITDA. This signals the market has high growth expectations.
How Well Does FTK Make Money?
Net Profit Margin
For every $100 in sales, Flotek Industries, Inc. keeps $14.48 as profit after all expenses.
Operating Margin
Core operations generate 10.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.71 in profit for every $100 of shareholder equity.
ROA
Flotek Industries, Inc. generates $15.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Flotek Industries, Inc. generates limited operating cash flow of $-1.75M, signaling weaker underlying cash strength.
Free Cash Flow
Flotek Industries, Inc. generates weak or negative free cash flow of $-4.39M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.15 in free cash annually.
FCF Yield
FTK converts -1.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How FTK Stacks Against Its Sector Peers
| Metric | FTK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.08 | 20.10 | Better (Cheaper) |
| ROE | 30.71% | 1093.00% | Weak |
| Net Margin | 14.48% | -30341.00% (disorted) | Strong |
| Debt/Equity | 0.13 | -0.69 (disorted) | Distorted |
| Current Ratio | 1.77 | 4.79 | Neutral |
| ROA | 15.01% | 2.00% | Excellent |
FTK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Flotek Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-48.05%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
104.54%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
105.84%
Industry Style: Cyclical, Value, Commodity
High Growth