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Forum Energy Tech (FET)
NYSE:FET
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Forum Energy Tech (FET) AI Stock Analysis

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FET

Forum Energy Tech

(NYSE:FET)

Rating:60Neutral
Price Target:
$27.00
▲(3.85% Upside)
The overall stock score is primarily influenced by the company's strong earnings call, which highlighted strategic growth initiatives and improved financial guidance. However, significant financial challenges and a poor valuation score due to negative profitability metrics weigh down the overall score. Technical analysis shows bullish momentum, but overbought conditions suggest caution.

Forum Energy Tech (FET) vs. SPDR S&P 500 ETF (SPY)

Forum Energy Tech Business Overview & Revenue Model

Company DescriptionForum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and protection products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and complementary subsea technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping, hydraulic fracturing and flowback services markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
How the Company Makes MoneyForum Energy Technologies generates revenue through multiple streams, primarily by selling equipment and providing services to the oil and gas industry. Its key revenue streams include the sale of subsea production systems, drilling equipment, and surface production technologies, which are critical for energy extraction and production. The company also earns revenue from aftermarket services, including repairs, maintenance, and upgrades of existing equipment. Additionally, partnerships with major oil and gas companies enable FET to secure long-term contracts and projects, which provide a stable income source. The company benefits from market dynamics such as rising energy demand and technological advancements that necessitate innovative solutions in the energy sector.

Forum Energy Tech Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial results and strategic growth initiatives, including increased free cash flow guidance, robust bookings, and a share repurchase program. However, challenges such as tariff impacts and anticipated market activity decline were noted. Overall, the positive aspects significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
The company reported sequential growth in bookings, revenue, EBITDA, and free cash flow. Revenue and EBITDA were in the top half of guidance ranges, with free cash flow of $23 million in Q2, marking a 27% year-over-year increase.
Increased Free Cash Flow Guidance
FET raised its full-year 2025 free cash flow guidance to between $60 million and $80 million, a $20 million increase, supported by expected working capital reductions and cost savings.
Robust Bookings and Backlog
Bookings increased by 31% from the last quarter, with a book-to-bill ratio of 132%. The backlog reached the highest level in over 10 years, driven by strong performance in the Subsea product line.
Share Repurchase Program
The company repurchased approximately 5% of shares outstanding in 2025 and plans to repurchase an additional 10% based on full-year guidance and current stock price levels.
Vision 2030 and Strategic Growth
FET outlined its Vision 2030 plan, aiming to double revenue organically by expanding its addressable market by more than 50% and leveraging a capital-light business model.
Negative Updates
Ongoing Tariff Impacts
The company faced challenges from tariff impacts, which led to a slight reduction in consolidated EBITDA margin. The valves product line was particularly affected by tariff uncertainties.
Market Activity Decline
FET anticipates a gradual downward trend in industry activity for the remainder of the year, reflecting softening market expectations and a decline in global rig count.
Company Guidance
During the Forum Energy Technologies Second Quarter 2025 Earnings Conference Call, the company reported strong sequential growth across several metrics including bookings, revenue, EBITDA, and free cash flow. Bookings were notably robust, driving backlog to its highest level in over a decade. The company generated $23 million in free cash flow for the quarter, totaling $30 million for the first half of the year, representing a 27% year-over-year increase. Consequently, full-year 2025 free cash flow guidance was raised to between $60 million and $80 million. The company repurchased approximately 5% of its shares outstanding and plans to repurchase an additional 10%. Additionally, the company aims to reduce net leverage to 1.3x by year-end, with a free cash flow yield around 30%. Vision 2030, the company's long-term plan, anticipates significant growth driven by global economic expansion and increased demand for oil and gas, potentially doubling revenue and significantly increasing free cash flow per share by 2030.

Forum Energy Tech Financial Statement Overview

Summary
Forum Energy Tech faces several financial challenges, particularly in sustaining profitability, as evident from the income statement. While the balance sheet shows controlled leverage, potential risks in equity stability should be monitored. The cash flow situation is more promising, with positive free cash flow and efficient cash conversion, providing a degree of operational flexibility amidst ongoing losses.
Income Statement
45
Neutral
The income statement shows a challenging financial situation with consistent negative net income and declining EBIT and EBITDA margins over several periods. Gross profit margin remains relatively stable, but overall revenue growth has stagnated. The recent TTM data indicates a slight reduction in gross profit compared to the previous annual report, highlighting potential difficulties in maintaining profitability.
Balance Sheet
55
Neutral
The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio has declined due to decreasing stockholders' equity. The company maintains a reasonable level of cash and equivalents. Despite some financial restructuring, the balance sheet reflects a mixed picture with potential risks around equity stability.
Cash Flow
60
Neutral
Cash flow statements indicate positive free cash flow in the recent TTM period, a positive sign. Operating cash flow has improved, but the company experienced fluctuations in free cash flow in previous years. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion despite net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue801.85M816.42M738.86M699.90M541.10M512.50M
Gross Profit245.90M255.03M204.15M188.50M123.30M-11.00M
EBITDA-41.01M-43.22M45.21M46.03M-7.82M-28.50M
Net Income-109.52M-135.33M-18.88M3.71M-82.70M-96.90M
Balance Sheet
Total Assets810.13M815.95M821.06M831.30M791.30M889.90M
Cash, Cash Equivalents and Short-Term Investments38.97M44.66M46.16M51.00M46.90M128.60M
Total Debt81.88M272.59M201.40M313.31M278.93M351.20M
Total Liabilities475.91M496.05M408.43M524.20M462.20M483.70M
Stockholders Equity334.22M319.90M412.63M307.10M329.10M406.20M
Cash Flow
Free Cash Flow92.87M84.05M239.00K-24.60M-18.20M1.70M
Operating Cash Flow89.22M92.19M8.18M-17.10M-15.80M3.90M
Investing Cash Flow21.97M-137.53M-6.57M27.10M10.70M108.30M
Financing Cash Flow-106.95M45.24M-7.58M-5.08M-76.20M-41.80M

Forum Energy Tech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.00
Price Trends
50DMA
21.39
Positive
100DMA
18.62
Positive
200DMA
17.91
Positive
Market Momentum
MACD
1.56
Negative
RSI
71.56
Negative
STOCH
84.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FET, the sentiment is Positive. The current price of 26 is above the 20-day moving average (MA) of 23.96, above the 50-day MA of 21.39, and above the 200-day MA of 17.91, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 84.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FET.

Forum Energy Tech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$339.90M18.437.00%0.37%14.77%34.74%
66
Neutral
$357.70M25.5315.85%21.72%98.73%
65
Neutral
$15.28B7.483.19%5.33%4.10%-60.58%
62
Neutral
$241.67M-9.95%-10.77%-229.81%
60
Neutral
$316.87M-28.21%3.86%-294.41%
53
Neutral
$348.41M49.070.95%-12.15%
41
Neutral
$28.51M73.91%3.23%31.76%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FET
Forum Energy Tech
26.00
10.00
62.50%
FTK
Flotek
11.26
7.18
175.98%
NGS
Natural Gas Services Group
26.50
7.48
39.33%
OIS
Oil States International
5.51
0.86
18.49%
GEOS
Geospace Technologies
18.03
8.35
86.26%
NINE
Nine Energy Service
0.66
-0.46
-41.07%

Forum Energy Tech Corporate Events

Executive/Board Changes
Forum Energy Tech Expands Board with New Appointments
Neutral
Jun 16, 2025

On June 13, 2025, Forum Energy Technologies, Inc. announced the appointment of Aron H. Marquez and Mark W. Smith to its Board of Directors, expanding the Board to nine members. Mr. Marquez will serve as a Class III director until 2027, participating in the Nominating, Governance & Sustainability Committee, and the Compensation & Human Capital Committee. Mr. Smith will serve as a Class I director until 2028, joining the Audit Committee and Compensation & Human Capital Committee. Both directors will receive compensation similar to other non-employee directors, including restricted stock awards.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 28, 2025