FORUM ENERGY TECHNOLOGIES IN (FET) Stock Fundamental Analysis
NYSE:FET - New York Stock Exchange, Inc. - US34984V2097 - Common Stock - Currency: USD
Overall FET gets a fundamental rating of 3 out of 10. We evaluated FET against 61 industry peers in the Energy Equipment & Services industry. The financial health of FET is average, but there are quite some concerns on its profitability. FET has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FET has reported negative net income.
In the past year FET had a positive cash flow from operations.
FET had negative earnings in 4 of the past 5 years.
In multiple years FET reported negative operating cash flow during the last 5 years.
1.2 Ratios
FET's Return On Assets of -15.68% is on the low side compared to the rest of the industry. FET is outperformed by 90.16% of its industry peers.
Looking at the Return On Equity, with a value of -38.71%, FET is doing worse than 83.61% of the companies in the same industry.
FET has a Return On Invested Capital of 4.72%. This is in the lower half of the industry: FET underperforms 60.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FET is below the industry average of 8.05%.
The 3 year average ROIC (3.27%) for FET is below the current ROIC(4.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.68% | ||
| ROE | -38.71% | ||
| ROIC | 4.72% |
ROA(3y)-6.15%
ROA(5y)-7.96%
ROE(3y)-15.22%
ROE(5y)-18.93%
ROIC(3y)3.27%
ROIC(5y)N/A
1.3 Margins
FET has a worse Operating Margin (4.41%) than 70.49% of its industry peers.
FET's Gross Margin of 30.92% is fine compared to the rest of the industry. FET outperforms 60.66% of its industry peers.
In the last couple of years the Gross Margin of FET has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 30.92% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.14%
GM growth 5Y4.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FET is destroying value.
FET has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FET has been increased compared to 5 years ago.
The debt/assets ratio for FET is higher compared to a year ago.
2.2 Solvency
FET has an Altman-Z score of 0.42. This is a bad value and indicates that FET is not financially healthy and even has some risk of bankruptcy.
FET has a Altman-Z score of 0.42. This is amonst the worse of the industry: FET underperforms 80.33% of its industry peers.
The Debt to FCF ratio of FET is 1.92, which is an excellent value as it means it would take FET, only 1.92 years of fcf income to pay off all of its debts.
FET's Debt to FCF ratio of 1.92 is fine compared to the rest of the industry. FET outperforms 78.69% of its industry peers.
FET has a Debt/Equity ratio of 0.53. This is a neutral value indicating FET is somewhat dependend on debt financing.
FET has a Debt to Equity ratio (0.53) which is in line with its industry peers.
Although FET does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.4
WACC11.88%
2.3 Liquidity
FET has a Current Ratio of 2.46. This indicates that FET is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.46, FET is doing good in the industry, outperforming 75.41% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that FET should not have too much problems paying its short term obligations.
FET's Quick ratio of 1.10 is on the low side compared to the rest of the industry. FET is outperformed by 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
FET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -326.30%.
FET shows a small growth in Revenue. In the last year, the Revenue has grown by 7.31%.
FET shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
EPS 1Y (TTM)-326.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)7.31%
Revenue growth 3Y14.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-4.5%
3.2 Future
Based on estimates for the next years, FET will show a very strong growth in Earnings Per Share. The EPS will grow by 99.47% on average per year.
Based on estimates for the next years, FET will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y206.87%
EPS Next 2Y99.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.76%
Revenue Next 2Y-2.17%
Revenue Next 3Y0.69%
Revenue Next 5Y1.77%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of FET can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FET indicates a somewhat cheap valuation: FET is cheaper than 67.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.28. FET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FET is valued a bit cheaper than 68.85% of the companies in the same industry.
FET's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FET is cheaper than 98.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.63 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FET's earnings are expected to grow with 99.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y99.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.93
+0.03 (+0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.46%
Inst Owner Change-0.78%
Ins Owners3.88%
Ins Owner Change3.16%
Market Cap234.16M
Analysts45
Price Target24.48 (29.32%)
Short Float %1.5%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-524.57%
Min EPS beat(2)-964.09%
Max EPS beat(2)-85.06%
EPS beat(4)0
Avg EPS beat(4)-301.51%
Min EPS beat(4)-964.09%
Max EPS beat(4)-25.41%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.41%
Revenue beat(4)0
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-1.41%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-20%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-57.14%
EPS NY rev (1m)-17.52%
EPS NY rev (3m)-27.49%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.12 | ||
| P/S | 0.29 | ||
| P/FCF | 2.63 | ||
| P/OCF | 2.43 | ||
| P/B | 0.73 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)-0.7
EYN/A
EPS(NY)1.7
Fwd EY8.99%
FCF(TTM)7.21
FCFY38.07%
OCF(TTM)7.8
OCFY41.21%
SpS65.26
BVpS25.87
TBVpS12.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.68% | ||
| ROE | -38.71% | ||
| ROCE | 5.98% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.98% | ||
| ROICexgc | 7.06% | ||
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 30.92% | ||
| FCFM | 11.04% |
ROA(3y)-6.15%
ROA(5y)-7.96%
ROE(3y)-15.22%
ROE(5y)-18.93%
ROIC(3y)3.27%
ROIC(5y)N/A
ROICexc(3y)3.54%
ROICexc(5y)N/A
ROICexgc(3y)5.08%
ROICexgc(5y)N/A
ROCE(3y)4.15%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.14%
GM growth 5Y4.28%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 15.03% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 0.42 |
F-Score6
WACC11.88%
ROIC/WACC0.4
Cap/Depr(3y)19.45%
Cap/Depr(5y)13.67%
Cap/Sales(3y)1.05%
Cap/Sales(5y)0.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-326.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y206.87%
EPS Next 2Y99.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.31%
Revenue growth 3Y14.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-4.5%
Revenue Next Year-5.76%
Revenue Next 2Y-2.17%
Revenue Next 3Y0.69%
Revenue Next 5Y1.77%
EBIT growth 1Y35.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year203.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y487.6%
FCF growth 3YN/A
FCF growth 5Y-1.14%
OCF growth 1Y730.68%
OCF growth 3YN/A
OCF growth 5Y-2.4%