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ProFrac Holding (ACDC)
NASDAQ:ACDC
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ProFrac Holding
(NASDAQ:ACDC)
Rating:57Neutral
Price Target:
$6.50
▲( 0.31% Upside)
ProFrac Holding (ACDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend YieldN/A
Average Volume (3M)955.35K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth-6.13%
EPS Growth-76.84%
CountryUS
Employees3,077
SectorEnergy
Sector Strength46
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding160,178,440
10 Day Avg. Volume1,290,881
30 Day Avg. Volume955,349
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio6.47
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit5.35
Enterprise Value/Ebitda1.27
Forecast
1Y Price Target
$5.00Price Target Upside-22.84% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering4
ProFrac Holding Business Overview & Revenue Model
Company DescriptionProFrac Holding Corp (ACDC) is a leading energy services company, primarily engaged in the hydraulic fracturing sector. The company provides comprehensive frac services, including pressure pumping, completions, and related services for the upstream oil and gas industry. ProFrac is focused on delivering high-quality, efficient, and environmentally responsible solutions to enhance the extraction of hydrocarbons from reservoirs.
How the Company Makes MoneyProFrac Holding makes money predominantly through providing hydraulic fracturing services to oil and gas exploration and production companies. Its revenue model is based on service contracts and agreements with these companies, where it charges fees for the use of its equipment and expertise in fracturing operations. Key revenue streams include the sale of pressure pumping services, leasing of fracturing equipment, and offering integrated completion solutions. The company also benefits from strategic partnerships and long-term agreements with major oil producers, which ensure a steady demand for its services. Additionally, ProFrac may engage in related activities such as the sale of frac sand or other materials necessary for the hydraulic fracturing process, contributing further to its revenue.
ProFrac Holding Financial Statement Overview
Summary
ProFrac Holding is experiencing significant financial pressure, with challenges in profitability and high leverage. While there are some improvements in gross profit margins and free cash flow, the overall financial health is at risk due to negative profit margins and high debt levels. The company needs to focus on improving operational efficiency and managing leverage to enhance its financial stability.Income Statement
The company has faced challenges in profitable operations, reflected in negative net profit margins over the years. Recent revenue has decreased significantly, with a downturn in EBIT and EBITDA margins, indicating operational inefficiencies. However, gross profit margins have shown some improvement, suggesting potential for cost management.45
Neutral
Balance Sheet
The balance sheet shows high leverage with a rising debt-to-equity ratio, although stockholders' equity remains positive. The equity ratio is moderate, which reflects some financial stability. However, the consistently negative ROE over recent years highlights profitability challenges.40
Negative
Cash Flow
The company has maintained positive operating cash flow, which is a strong point. The free cash flow has been volatile, with recent improvement. However, the free cash flow to net income ratio is concerning due to negative net income, indicating potential cash management issues.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.19B | 2.63B | 2.43B | 768.35M | 547.70M | Gross Profit |
| 695.80M | 486.40M | 719.60M | 57.54M | -30.00M | EBIT |
| -60.40M | 166.60M | 412.40M | -8.16M | -94.70M | EBITDA |
| 72.70M | 535.30M | 741.90M | 128.39M | 55.97M | Net Income Common Stockholders |
| -219.90M | -97.70M | 342.70M | -43.54M | -118.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.80M | 25.30M | 35.10M | 5.38M | 2.95M | Total Assets |
| 2.99B | 3.07B | 2.93B | 664.57M | 577.28M | Total Debt |
| 1.27B | 1.16B | 1.04B | 301.57M | 275.71M | Net Debt |
| 1.26B | 1.14B | 1.01B | 296.19M | 272.76M | Total Liabilities |
| 1.91B | 1.74B | 1.58B | 516.46M | 400.46M | Stockholders Equity |
| 1.01B | 1.27B | -1.18B | 147.07M | 176.81M |
| Cash Flow | Free Cash Flow | |||
| 112.30M | 286.50M | 59.00M | -43.46M | -2.90M | Operating Cash Flow |
| 367.30M | 553.50M | 415.20M | 43.94M | 45.10M | Investing Cash Flow |
| -372.30M | -715.80M | -1.03B | -78.38M | -44.60M | Financing Cash Flow |
| -5.50M | 149.70M | 645.90M | 36.87M | -15.30M |
ProFrac Holding Technical Analysis
Neutral
6.48
Price Trends
5.84
Positive
6.77
Negative
6.83
Negative
Market Momentum
0.33
Negative
61.69
Neutral
90.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACDC, the sentiment is Neutral. The current price of 6.48 is above the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.84, and below the 200-day MA of 6.83, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACDC.
ProFrac Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $978.55M | 23.62 | 4.51% | 3.19% | -4.91% | -46.51% | |
65 Neutral | $1.07B | 41.18 | 8.29% | ― | -9.84% | -111.71% | |
59 Neutral | $833.62M | 7.45 | 13.19% | ― | 42.03% | ― | |
57 Neutral | $1.04B | ― | -20.15% | ― | -6.13% | -76.84% | |
57 Neutral | $7.06B | 3.07 | -3.48% | 5.79% | 0.59% | -50.58% | |
53 Neutral | $579.82M | ― | -16.24% | ― | -13.32% | -309.35% | |
42 Neutral | $22.06M | ― | 73.91% | ― | -4.38% | -3.77% |
* Energy Sector Average
Performance Comparison
ACDC
ProFrac Holding
6.48
-3.16
-32.78%
MRC
MRC Global
12.38
-0.73
-5.57%
VTOL
Bristow Group
28.97
-7.69
-20.98%
PUMP
Propetro Holding
5.58
-4.24
-43.18%
WTTR
Select Energy Services
8.14
-2.48
-23.35%
NINE
Nine Energy Service
0.52
-1.15
-68.86%
ProFrac Holding Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 42.11%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The call presented a mix of strong financial performance and operational efficiency in the first quarter, contrasted by concerns over economic uncertainty and its potential impact on future activity levels. The company remains optimistic about certain market opportunities, but challenges such as tariffs and supply chain issues create a cautious outlook.Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue grew 32% to $600 million, while adjusted EBITDA increased 83% to $130 million compared to the previous quarter. This performance significantly exceeded consensus estimates.
Record Pumping Hours and Fleet Efficiency
ProFrac set a new record in total pumping hours and average pumping hours per fleet, attributing success to robust asset management and operational efficiency.
Successful Deployment of ProPilot Automation Software
The ProPilot automation software for hydraulic fracturing was successfully implemented, reducing human intervention and optimizing operations.
Strategic Transaction with Flotek
Completed a transaction with Flotek, enhancing growth potential and leveraging cutting-edge gas quality assurance and asset integrity solutions.
Positive Momentum in Proppant Segment
Significant volume gains in the proppant segment were achieved, with January levels 45% above December.
Negative Updates
Economic Uncertainty Impacting Future Outlook
Economic uncertainty from tariffs and OPEC's increased oil production announcement has impacted commodity prices and future activity outlook.
Second Quarter Activity Decline Expected
Operators are expected to reduce activity in the second quarter due to economic uncertainty, impacting overall company performance.
Challenges with Tariffs and Supply Chain
Tariffs have increased cost inputs and created uncertainty, requiring engagement with customers and vendors to navigate through the cycle.
Proppant Segment Ramp-up Costs
While volumes increased, ramp-up costs and planned mine improvements weighed on the performance of the proppant segment.
Company Guidance
During ProFrac's first quarter 2025 earnings call, the company reported a significant revenue increase of 32% to $600 million compared to the fourth quarter, with adjusted EBITDA rising by 83% to $130 million. The company highlighted the success of its record-breaking total pumping hours and the introduction of ProPilot automation software, aiming to enhance operational efficiency. ProFrac also completed a transaction with Flotek, focusing on innovative mobile power generation solutions. Despite economic uncertainty from tariffs and increased OPEC oil production, the company remains optimistic about the natural gas market in Haynesville, which could offset expected declines in the second quarter. ProFrac is implementing strategic capital allocation adjustments to maximize cash flow while maintaining service quality. The call also discussed future expectations, including a focus on natural gas activity, especially in Haynesville, and a disciplined approach to managing assets and capital.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.