FLOTEK INDUSTRIES INC (FTK) Stock Fundamental Analysis
NYSE:FTK - New York Stock Exchange, Inc. - US3433894090 - Common Stock - Currency: USD
FTK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. FTK has only an average score on both its financial health and profitability. FTK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FTK had positive earnings in the past year.
FTK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FTK reported negative net income in multiple years.
In the past 5 years FTK reported 4 times negative operating cash flow.
1.2 Ratios
FTK has a Return On Assets of 6.15%. This is amongst the best in the industry. FTK outperforms 85.88% of its industry peers.
FTK has a Return On Equity of 9.22%. This is in the better half of the industry: FTK outperforms 71.76% of its industry peers.
With a decent Return On Invested Capital value of 7.62%, FTK is doing good in the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.22% | ||
| ROIC | 7.62% |
ROA(3y)-1.28%
ROA(5y)-44.59%
ROE(3y)-531.16%
ROE(5y)-406.73%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.61%, FTK is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
FTK has a Operating Margin (6.46%) which is comparable to the rest of the industry.
FTK has a worse Gross Margin (21.06%) than 61.18% of its industry peers.
In the last couple of years the Gross Margin of FTK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.46% | ||
| PM (TTM) | 5.61% | ||
| GM | 21.06% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y40.33%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTK is destroying value.
The number of shares outstanding for FTK has been increased compared to 1 year ago.
The number of shares outstanding for FTK has been increased compared to 5 years ago.
Compared to 1 year ago, FTK has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that FTK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.35, FTK is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
The Debt to FCF ratio of FTK is 3.41, which is a good value as it means it would take FTK, 3.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FTK (3.41) is better than 85.88% of its industry peers.
FTK has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FTK (0.04) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.84
WACC9.08%
2.3 Liquidity
FTK has a Current Ratio of 1.92. This is a normal value and indicates that FTK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.92, FTK is in line with its industry, outperforming 51.76% of the companies in the same industry.
FTK has a Quick Ratio of 1.65. This is a normal value and indicates that FTK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.65, FTK is doing good in the industry, outperforming 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
FTK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 353.85%, which is quite impressive.
Looking at the last year, FTK shows a decrease in Revenue. The Revenue has decreased by -0.55% in the last year.
Measured over the past years, FTK shows a quite strong growth in Revenue. The Revenue has been growing by 9.39% on average per year.
EPS 1Y (TTM)353.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y62.86%
Revenue growth 5Y9.39%
Sales Q2Q%20.31%
3.2 Future
The Earnings Per Share is expected to grow by 59.03% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.38% on average over the next years. This is quite good.
EPS Next Y90.47%
EPS Next 2Y59.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.52%
Revenue Next 2Y9.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTK is valuated rather expensively with a Price/Earnings ratio of 22.09.
Compared to the rest of the industry, the Price/Earnings ratio of FTK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.92. FTK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.60 indicates a reasonable valuation of FTK.
Based on the Price/Forward Earnings ratio, FTK is valued a bit cheaper than 77.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FTK to the average of the S&P500 Index (21.65), we can say FTK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
FTK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FTK is more expensive than 68.24% of the companies in the same industry.
FTK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 153.03 | ||
| EV/EBITDA | 16.44 |
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.
A more expensive valuation may be justified as FTK's earnings are expected to grow with 59.03% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y59.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FTK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.29
+0.5 (+7.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners20.36%
Inst Owner Change0%
Ins Owners2.37%
Ins Owner Change1.12%
Market Cap217.46M
Analysts80
Price Target10.97 (50.48%)
Short Float %3.71%
Short Ratio3.17
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)2
Avg EPS beat(2)19.91%
Min EPS beat(2)12.35%
Max EPS beat(2)27.46%
EPS beat(4)2
Avg EPS beat(4)6.4%
Min EPS beat(4)-10.33%
Max EPS beat(4)27.46%
EPS beat(8)4
Avg EPS beat(8)-41.22%
EPS beat(12)5
Avg EPS beat(12)-71.5%
EPS beat(16)6
Avg EPS beat(16)-64.59%
Revenue beat(2)2
Avg Revenue beat(2)2.35%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.05%
Revenue beat(4)2
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-11.35%
Max Revenue beat(4)3.05%
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)22.86%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)4.98%
EPS NY rev (1m)25.91%
EPS NY rev (3m)25.91%
Revenue NQ rev (1m)-4.31%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-3.87%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.16 | ||
| P/FCF | 153.03 | ||
| P/OCF | 64.7 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)0.33
EY4.53%
EPS(NY)0.63
Fwd EY8.62%
FCF(TTM)0.05
FCFY0.65%
OCF(TTM)0.11
OCFY1.55%
SpS6.27
BVpS3.82
TBVpS3.82
PEG (NY)0.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.22% | ||
| ROCE | 10.03% | ||
| ROIC | 7.62% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 7.89% | ||
| OM | 6.46% | ||
| PM (TTM) | 5.61% | ||
| GM | 21.06% | ||
| FCFM | 0.76% |
ROA(3y)-1.28%
ROA(5y)-44.59%
ROE(3y)-531.16%
ROE(5y)-406.73%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y40.33%
GM growth 5YN/A
F-Score5
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 217.73% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 14.27 | ||
| Cash Conversion | 25.93% | ||
| Profit Quality | 13.54% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.35 |
F-Score5
WACC9.08%
ROIC/WACC0.84
Cap/Depr(3y)140.85%
Cap/Depr(5y)93.69%
Cap/Sales(3y)0.64%
Cap/Sales(5y)0.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)353.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y90.47%
EPS Next 2Y59.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y62.86%
Revenue growth 5Y9.39%
Sales Q2Q%20.31%
Revenue Next Year9.52%
Revenue Next 2Y9.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-47.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year143.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.75%
OCF growth 3YN/A
OCF growth 5YN/A