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Flowco Holdings Inc Class A (FLOC)
NYSE:FLOC
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Flowco Holdings Inc Class A
(NYSE:FLOC)
Rating:57Neutral
Price Target:―
Positive Factors
Financial Performance
EBITDA margins are top-tier among peers and are expected to continue expanding, delivering attractive corporate returns.
Growth Strategy
The company's suite of artificial lift offerings and VRU technology should allow for continued earnings growth.
Market Leadership
Flowco's leading position in high pressure gas lift and vapor recovery units is expected to drive double-digit revenue growth through 2026.
Negative Factors
Market Activity
The company reiterated its solid positioning, growth strategy, along with revenue/margin expectations for '25 despite somewhat softening NAM activity.
Flowco Holdings Inc Class A (FLOC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield0.99%
Average Volume (3M)353.27K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,283
SectorServices
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding25,737,244
10 Day Avg. Volume385,279
30 Day Avg. Volume353,273
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.03
Enterprise Value/Revenue5.21
Enterprise Value/Gross Profit15.51
Enterprise Value/Ebitda16.16
Forecast
1Y Price Target
$27.00Price Target Upside67.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Flowco Holdings Inc Class A Business Overview & Revenue Model
Company DescriptionFlowco Holdings Inc. operates as a holding company. The Company, through its subsidiaries, specializes in production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry.
How the Company Makes MoneyFlowco Holdings Inc makes money primarily through the acquisition and management of its subsidiary companies, which operate in various industries such as energy, technology, and infrastructure. The company generates revenue by leveraging the operational efficiencies and synergies of its diverse portfolio. Key revenue streams include dividends from subsidiary profits, capital gains from strategic sales, and earnings from operational improvements. Significant partnerships with industry leaders and financial institutions also contribute to Flowco's earnings by enhancing its investment capabilities and expanding its market reach.
Flowco Holdings Inc Class A Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
Flowco reported solid financial performance with revenue and income growth, strong cash flow, and investment in high-return opportunities. Despite market pressures and decreased EBITDA margins, the company maintains a positive outlook due to its competitive advantages and strategic positioning. The commitment to shareholder returns through dividends further supports a cautiously optimistic sentiment.Q1-2025 Updates
Positive Updates
Revenue and Growth Metrics
Flowco delivered adjusted net income of $32.8 million on revenue of $192 million. Revenue was up approximately 3.4%, while adjusted EBITDA was up 1.5% quarter-over-quarter.
Strong Cash Flow and Debt Reduction
Generated approximately $15 million of free cash flow during the quarter and reduced the debt balance to $176 million.
Investment in High-Return Opportunities
Invested $30 million in high-return opportunities exceeding the ROCE benchmark, with an annualized adjusted ROCE of approximately 18% for the first quarter.
Dividend Declaration
Flowco declared an $0.08 per share dividend, reinforcing its commitment to return value to shareholders.
Domestic Manufacturing Advantage
Flowco's products are manufactured in the United States with a predominantly domestic supply chain, providing a competitive advantage amid tariff concerns.
Negative Updates
Market Uncertainty and Pressure
The upstream outlook in the United States is under pressure from evolving tariff policies, OPEC+ commentary, and broader economic uncertainty.
Decreased EBITDA Margins
Adjusted EBITDA margins decreased by approximately 73 basis points due to a change in mix at the segment level and increased costs associated with building out public corporate functions.
Flat Production Environment
The company anticipates more muted growth in product sales businesses due to customer deferrals and conservative spending.
Company Guidance
During the Flowco Holdings Inc. First Quarter Fiscal 2025 Results Conference Call, the company provided guidance and updates on various metrics. Joe Bob Edwards, President and CEO, highlighted Flowco's strategic position in a challenging macro environment, emphasizing their focus on non-discretionary operational expenditures (OpEx) rather than capital expenditures (CapEx), with a particular reliance on oil and gas production levels instead of drilling activity. Flowco anticipates maintaining its capital expenditure plans with only minor adjustments, aiming for continued growth in revenue, adjusted EBITDA, and net income. The company reported a free cash flow of approximately $15 million for the quarter and a reduction in debt to $176 million. With $192 million in revenue and an adjusted net income of $32.8 million, Flowco achieved a 3.4% increase in revenue and a 1.5% increase in adjusted EBITDA quarter-over-quarter. The company expects low double-digit percentage growth in adjusted EBITDA year-over-year, supported by a shift towards rental revenue, which they project will drive higher margins in the second half of the year.Flowco Holdings Inc Class A Financial Statement Overview
Summary
Flowco Holdings Inc Class A demonstrates strong revenue growth and profitability indicators on the income statement, yet faces significant challenges on the balance sheet with high leverage and negative equity. Cash flow generation is a strength, showing good operational performance. The company should focus on improving its capital structure to mitigate financial risks and enhance long-term sustainability.Income Statement
Flowco Holdings Inc Class A shows a robust revenue growth with a significant increase from 2023 to 2024. The gross profit margin and net profit margin have improved, indicating enhanced operational efficiency. However, the margins could be higher compared to industry leaders, and the net profit margin is relatively modest. The EBIT and EBITDA margins are solid, reflecting strong core profitability.75
Positive
Balance Sheet
The company has a concerning debt-to-equity ratio due to negative stockholders' equity, posing a financial risk. While total assets have increased, the high level of total debt and negative equity are significant issues. The balance sheet reflects potential solvency risks that need addressing for long-term stability.40
Negative
Cash Flow
Operating cash flow has grown consistently, and the free cash flow is positive, indicating healthy cash generation capabilities. Although the free cash flow growth is notable, the free cash flow to net income ratio suggests room for improvement in cash conversion. Overall, cash flow stability is a positive aspect of the company's financials.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 571.56M | 535.28M | 243.32M | 148.61M |
| Gross Profit | 191.93M | 179.99M | 94.72M | 56.93M |
| EBITDA | 184.20M | 208.95M | 121.75M | 78.72M |
| Net Income | 33.98M | 80.25M | 58.09M | 32.73M |
Balance Sheet | ||||
| Total Assets | 1.61B | 1.59B | 392.09M | 366.21M |
| Cash, Cash Equivalents and Short-Term Investments | 9.29M | 4.62M | 0.00 | 0.00 |
| Total Debt | 209.12M | 676.69M | 243.08M | 223.17M |
| Total Liabilities | 291.11M | 749.84M | 258.34M | 238.13M |
| Stockholders Equity | 150.35M | -897.00M | 0.00 | 0.00 |
Cash Flow | ||||
| Free Cash Flow | 94.75M | 88.70M | 38.35M | -40.40M |
| Operating Cash Flow | 186.90M | 179.38M | 81.86M | 66.56M |
| Investing Cash Flow | -98.97M | -94.43M | -42.67M | -106.93M |
| Financing Cash Flow | -101.76M | -80.33M | -39.19M | 40.37M |
Flowco Holdings Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.70B | 20.68 | 7.29% | ― | 2.78% | -63.09% | |
64 Neutral | $1.28B | 41.18 | 5.66% | ― | -9.81% | -124.43% | |
64 Neutral | $1.80B | 8.66 | 10.92% | 2.75% | -9.32% | -48.26% | |
57 Neutral | $1.47B | ― | 0.99% | ― | ― | ||
57 Neutral | $1.84B | 9.34 | 8.02% | 2.47% | 5.38% | -37.86% | |
56 Neutral | $1.44B | 89.30 | 1.20% | 8.46% | 49.18% | -87.20% | |
50 Neutral | $645.93M | ― | -25.45% | ― | -4.14% | -39.14% |
* Services Sector Average
Performance Comparison
FLOC
Flowco Holdings Inc Class A
16.16
-13.57
-45.64%
MRC
MRC Global
15.13
2.01
15.32%
DNOW
Now
15.95
2.92
22.41%
LBRT
Liberty Oilfield Services
11.28
-9.04
-44.49%
ACDC
ProFrac Holding
4.15
-2.62
-38.70%
AESI
Atlas Energy Solutions
11.70
-8.03
-40.70%
Flowco Holdings Inc Class A Corporate Events
DividendsBusiness Operations and Strategy
Flowco Holdings Announces First Quarterly Cash Dividend
Positive
May 2, 2025
On May 2, 2025, Flowco Holdings Inc. announced its first quarterly cash dividend of $0.08 per share for its Class A common stock, payable on May 28, 2025, to shareholders of record as of May 14, 2025. This move, reflecting the company’s strong financial position and long-term strategy, aims to deliver value to shareholders while continuing to invest in future growth. The dividend declaration underscores Flowco’s commitment to maintaining regular payouts, although future dividends will depend on various factors, including financial performance and capital requirements.
Spark’s Take on FLOC Stock
According to Spark, TipRanks’ AI Analyst, FLOC is a Neutral.
Flowco Holdings Inc Class A’s overall stock score is driven by strong revenue growth and strategic initiatives, but is hampered by significant balance sheet risks and technical analysis indicating potential short-term weaknesses. The absence of valuation metrics adds uncertainty to the stock’s relative appeal.
To see Spark’s full report on FLOC stock, click here.
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.