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Forum Energy (FET)
:FET
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Forum Energy Tech
(NYSE:FET)
Rating:58Neutral
Price Target:
$19.00
▼(-2.56%Downside)
Forum Energy Tech (FET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$241.21M
Dividend YieldN/A
Average Volume (3M)76.13K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth7.31%
EPS Growth-326.94%
CountryUS
Employees1,800
SectorEnergy
Sector Strength54
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding12,369,625
10 Day Avg. Volume120,806
30 Day Avg. Volume76,131
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)0.55
Price to Sales (P/S)0.00
P/FCF Ratio-6.89
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda8.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Forum Energy Tech Business Overview & Revenue Model
Company DescriptionForum Energy Technologies, Inc. (FET) is a global company that designs, manufactures, and sells technology-based products and services for the energy industry. The company operates in various sectors, including drilling, subsea, completions, and production, providing a wide range of products and services for oil and gas companies. FET's core offerings include drilling equipment, subsea technologies, and production systems that help optimize exploration and extraction processes.
How the Company Makes MoneyForum Energy Technologies generates revenue through the sale of its technology-based products and services to the energy sector, particularly focusing on oil and gas companies. The company's key revenue streams include the manufacturing and distribution of drilling equipment, subsea technologies, and production systems. FET also provides aftermarket services and support, which contribute to its earnings by offering maintenance, repair, and operational support for its products. The company forms strategic partnerships and agreements with other major players in the energy industry to expand its market presence and enhance its product offerings, which in turn boosts its revenue potential.
Forum Energy Tech Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 28.80%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and challenging aspects. The company showed strong performance in terms of free cash flow generation, order increases, and subsea segment strength. However, significant challenges exist due to external factors like tariffs, declining oil prices, and potential impacts on the North American market. The company's proactive cost management and share buyback efforts are positive, yet overshadowed by economic uncertainties.Q1-2025 Updates
Positive Updates
Positive Free Cash Flow
Generated $7 million in free cash flow in the first quarter, marking the seventh consecutive quarter of positive free cash flow generation. The company remains confident in its full-year free cash flow guidance of $40 million to $60 million.
Increase in Orders and Revenue
Orders increased by 6% to $201 million with a book-to-bill ratio of 104%. Revenue for the quarter was $193 million, and EBITDA was $20 million.
Strong Performance in Subsea Segment
Subsea orders returned to customary levels with meaningful bookings, including $8 million of subsea orders in April. This reflects the strength of the offshore market.
Efforts in Cost Management
Initiatives to eliminate $10 million of annualized costs and a focus on inventory management have helped align the business with market conditions.
Share Buybacks and Debt Reduction
Repurchased roughly 1% of outstanding shares for $2 million and plans to utilize 50% of free cash flow for further debt reduction.
Negative Updates
Impact of Trade and Tariff Policies
The radical upheaval in US trade and tariff policies has created significant economic uncertainty, leading to increased costs and lower demand in certain product lines.
Decline in Oil Prices
Dramatic decline in oil prices, hovering near four-year lows, putting pressure on activity-based sales which are highly correlated to rig count.
Challenges in Valve Solutions
Significant impact on demand for valves product line due to tariffs on Chinese imports, leading to a buyer strike and reduced orders.
Uncertainty in North American Market
Anticipated decline in North American rig count and overall global drilling and completions activity, potentially impacting revenue in the second half of the year.
Company Guidance
During the First Quarter 2025 earnings call for Forum Energy Technologies Inc., management provided guidance with several key metrics and insights into their strategy amidst current market conditions. The company anticipates full-year EBITDA around $85 million, assuming commodity prices remain at current levels. They are proactively managing costs and inventory, having already eliminated $10 million in annualized costs and generated approximately $40 million from inventory reductions in 2024, aiming for $40 million to $60 million in full-year free cash flow. The first quarter results showed revenue of $193 million and EBITDA of $20 million, with a 6% increase in orders totaling $201 million, leading to a book-to-bill ratio of 104%. Additionally, FET ended the first quarter with a net debt of $146 million and a net leverage ratio of 1.56 times, maintaining $108 million of liquidity with no debt maturities until 2028. Looking ahead, they expect second-quarter revenue between $180 million to $200 million and EBITDA ranging from $18 million to $22 million. The company remains committed to share buybacks and debt reduction, utilizing 50% of free cash flow for each, provided they maintain a net leverage ratio below 1.5 times.Forum Energy Tech Financial Statement Overview
Summary
The financial performance of Forum Energy Tech is mixed. Income statements reveal ongoing profitability challenges with negative net income and stagnant revenue growth. However, balance sheet analysis shows manageable leverage but potential risks in equity stability. Cash flow analysis is more positive, showing improved operating cash flow and consistent free cash flow generation.Income Statement
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.45
Neutral
Balance Sheet
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.55
Neutral
Cash Flow
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 807.29M | 816.42M | 738.86M | 699.90M | 541.10M | 512.50M |
| Gross Profit | 249.62M | 255.03M | 204.15M | 188.50M | 123.30M | -11.00M |
| EBITDA | -45.29M | -43.22M | 45.21M | 46.03M | -7.82M | -28.50M |
| Net Income | -123.91M | -135.33M | -18.88M | 3.71M | -82.70M | -96.90M |
Balance Sheet | ||||||
| Total Assets | 790.10M | 815.95M | 821.06M | 831.30M | 791.30M | 889.90M |
| Cash, Cash Equivalents and Short-Term Investments | 31.10M | 44.66M | 46.16M | 51.00M | 46.90M | 128.60M |
| Total Debt | 1.80M | 261.54M | 201.40M | 239.90M | 233.30M | 294.70M |
| Total Liabilities | 470.10M | 496.05M | 408.43M | 524.20M | 462.20M | 483.70M |
| Stockholders Equity | 320.00M | 319.90M | 412.63M | 307.10M | 329.10M | 406.20M |
Cash Flow | ||||||
| Free Cash Flow | 98.19M | 84.05M | 239.00K | -24.60M | -18.20M | 1.70M |
| Operating Cash Flow | 96.47M | 92.19M | 8.18M | -17.10M | -15.80M | 3.90M |
| Investing Cash Flow | 13.19M | -137.53M | -6.57M | 27.10M | 10.70M | 108.30M |
| Financing Cash Flow | -127.60M | 45.24M | -7.58M | -5.00M | -76.20M | -41.80M |
Forum Energy Tech Technical Analysis
Positive
19.50
Price Trends
16.54
Positive
17.22
Positive
16.57
Positive
Market Momentum
0.90
Positive
60.89
Neutral
41.57
Neutral
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 19.5 is above the 20-day moving average (MA) of 18.97, above the 50-day MA of 16.54, and above the 200-day MA of 16.57, indicating a bullish trend. The MACD of 0.90 indicates Positive momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 41.57 is Neutral, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $322.02M | 18.99 | 6.77% | ― | 22.64% | 78.46% | |
72 Outperform | $443.00M | 32.50 | 12.80% | ― | 11.97% | 188.31% | |
68 Neutral | $15.14B | 9.95 | 6.38% | 5.21% | 4.16% | -67.19% | |
59 Neutral | $348.32M | 64.94 | 0.75% | ― | -9.04% | ― | |
58 Neutral | $241.21M | ― | -32.34% | ― | 7.31% | -326.94% | |
56 Neutral | $171.36M | ― | -11.88% | ― | -14.52% | -204.65% | |
47 Neutral | $35.67M | ― | 73.91% | ― | -4.38% | -3.77% |
* Energy Sector Average
Performance Comparison
FET
Forum Energy Tech
19.50
3.69
23.34%
FTK
Flotek
14.84
10.26
224.02%
NGS
Natural Gas Services Group
25.51
5.95
30.42%
OIS
Oil States International
5.63
1.40
33.10%
GEOS
Geospace Technologies
14.02
5.05
56.30%
NINE
Nine Energy Service
0.84
-0.83
-49.70%
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.
Executive/Board ChangesShareholder Meetings
Forum Energy Tech Appoints New Chairman of the Board
Positive
May 13, 2025
On May 9, 2025, Forum Energy Technologies held its Annual Meeting where stockholders approved several key proposals, including an amendment to increase authorized shares of common stock and the election of Class I directors. Additionally, on May 12, 2025, the company announced the appointment of Michael McShane as the non-executive Chairman of the Board, succeeding C. Christopher Gaut, who retired after over 20 years of service. These developments are expected to impact the company’s governance and strategic direction positively.
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.