Flowco Holdings Inc Class A (FLOC) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: 1.32%
• Average Volume (3M): 275.73K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,283
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.35
• Shares Outstanding: 29,647,188
• 10 Day Avg. Volume: 300,620
• 30 Day Avg. Volume: 275,729
• PEG Ratio: 0.08
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 2.58
• Enterprise Value/Market Cap: 3.76
• Enterprise Value/Revenue: 13.93
• Enterprise Value/Gross Profit: 39.99
• Enterprise Value/Ebitda: 28.95
• 1Y Price Target: $28.00
• Price Target Upside: 20.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $23.00 ▼(-1.33% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

FLOC’s score is driven primarily by strong cash flow and generally solid profitability, supported by favorable technical momentum. The main constraint is valuation (high P/E), while earnings guidance and the accretive acquisition announcement are positives but tempered by recent revenue softness and execution risk.

Positive Factors

Strong cash generation

Consistent, substantial operating cash flow and positive free cash flow provide durable financial flexibility, supporting dividends, reinvestment, and M&A without relying on equity raises. High cash conversion (OCF well above net income) cushions the business through oilfield demand cycles.

Growing high‑margin rental fleet

Expansion of a recurring, high‑margin rental business shifts revenue mix toward more predictable, sticky cash flows. Durable rental fleet growth improves margin stability, reduces cyclicality from product sales, and enhances visibility for free cash flow and asset utilization over multiple quarters.

Acquisition expands artificial‑lift portfolio

Buying Valiant broadens product range and Permian presence, increasing addressable market and cross‑sell opportunities. An accretive, strategically aligned acquisition can lift scale, strengthen competitive positioning in production optimization, and deliver lasting margin and cash‑flow benefits if integrated well.

Negative Factors

Topline softness

Sustained revenue declines weaken operating leverage and can erode long‑term profitability if not reversed. Soft product sales in key segments indicate demand vulnerability; absent offsetting growth, persistent topline weakness undermines capacity to fund capex, dividends, and strategic investments.

Negative ROE and margin pressure

A negative ROE flags equity‑level volatility or non‑operating impacts that undermine shareholder returns. Combined with observed margin compression vs. prior periods, this raises concerns about sustainable profitability and return on invested capital over the medium term.

Acquisition execution and financing risk

Funding the $170M cash portion with ABL borrowings raises near‑term leverage and draws on credit capacity. Integration and regulatory approvals create execution risk; delays or synergies shortfalls could pressure cash flow, elevate costs, and distract management from core operational improvements.

Flowco Holdings Inc Class A Business Overview & Revenue Model

Company Description

Flowco 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 Money

Flowco 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 Financial Statement Overview

Summary

Overall fundamentals are solid, led by strong cash generation (operating cash flow ~$269M and free cash flow ~$138M in TTM) and continued profitability. Offsetting factors include modest TTM revenue decline (~-2.2%), signs of margin compression versus prior years, and an unusual negative ROE reading that reduces confidence in equity-level returns.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) showing healthy operating profitability (EBITDA margin ~34% and EBIT margin ~10%) and positive net income (~$87M). However, the topline trajectory has softened with revenue down in TTM (Trailing-Twelve-Months) (~-2.2% growth), and margins in TTM appear lower than the prior annual periods, indicating some deceleration and/or cost pressure versus 2023–2024.

Balance Sheet

Leverage appears manageable in TTM (Trailing-Twelve-Months) with debt meaningfully below equity (debt-to-equity ~0.11) and a sizeable asset base (~$1.69B). The main concern is profitability to equity in TTM: return on equity is negative, which conflicts with positive net income and suggests potential volatility or non-operating/equity-related impacts in the dataset; this reduces confidence in balance-sheet-driven returns despite improved leverage versus 2024.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is strong (~$269M) with positive free cash flow (~$138M) and improving free-cash-flow growth. Cash conversion is healthy overall, with operating cash flow running well above net income (coverage ~2.67), though free cash flow is only about half of net income in TTM, implying meaningful reinvestment/capex or working-capital needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	550.52M	535.28M	243.32M	148.61M
Gross Profit	191.81M	179.99M	94.72M	56.93M
EBITDA	265.01M	208.95M	121.75M	78.72M
Net Income	87.14M	80.25M	58.09M	32.73M
Balance Sheet
Total Assets	1.69B	1.59B	392.09M	366.21M
Cash, Cash Equivalents and Short-Term Investments	7.24M	4.62M	0.00	0.00
Total Debt	264.69M	676.69M	243.08M	223.17M
Total Liabilities	364.94M	749.84M	258.34M	238.13M
Stockholders Equity	370.96M	839.11M	133.75M	128.08M
Cash Flow
Free Cash Flow	137.55M	88.70M	38.35M	-40.40M
Operating Cash Flow	269.37M	179.38M	81.86M	66.56M
Investing Cash Flow	-211.17M	-94.43M	-42.67M	-106.93M
Financing Cash Flow	-74.08M	-80.33M	-39.19M	40.37M

Flowco Holdings Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNOW	72 Outperform	$3.00B	18.70	-4.59%	―	3.18%	-53.71%
FLOC	71 Outperform	$2.04B	44.22	―	1.32%	―	―
LBRT	66 Neutral	$4.39B	30.33	7.29%	1.78%	-12.05%	-46.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ACDC	52 Neutral	$998.41M	-2.74	-31.46%	―	-11.92%	-53.72%
AESI	50 Neutral	$1.48B	-124.33	-1.20%	10.12%	20.68%	-112.42%

Flowco Holdings Inc Class A Corporate Events

Flowco to Acquire Valiant, Expanding Artificial Lift Portfolio

On February 1, 2026, Flowco Holdings Inc. signed a definitive stock purchase agreement to acquire Riverstone Oilfield Services and Equipment, the parent of Valiant Artificial Lift Solutions, for approximately $200 million in a cash-and-stock deal comprising $170 million in cash and about 1.5 million Class A shares, with closing targeted for the first quarter of 2026 subject to customary conditions and regulatory approvals, including Hart-Scott-Rodino clearance. The acquisition of Valiant, a major private U.S. provider of electric submersible pump systems with a strong foothold in the Permian Basin, is structured on a cash-free, debt-free basis and valued at roughly 3.9 times Valiant’s projected 2026 adjusted EBITDA, and is expected to broaden Flowco’s artificial lift portfolio, significantly expand its addressable market, create cross-selling opportunities across both customer bases, and be accretive to earnings and free cash flow per share, reinforcing Flowco’s competitive positioning in the production optimization segment of the oilfield services industry.

The most recent analyst rating on (FLOC) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Flowco Holdings Inc Class A stock, see the FLOC Stock Forecast page.

Flowco Holdings Declares Quarterly Dividend for Class A Shareholders

On January 30, 2026, Flowco Holdings Inc. announced that its board had declared a quarterly cash dividend of $0.08 per share for its Class A common stock, payable on February 25, 2026 to shareholders of record as of February 13, 2026, with its operating subsidiary, Flowco MergeCo LLC, making a matching $0.08 per unit distribution to holders of its common units. The move underscores Flowco’s effort to return capital to investors while signaling confidence in its cash generation, though the company emphasized that any future dividends will remain subject to board discretion and dependent on operating results, cash flows, financial position, capital needs, credit agreement constraints and legal requirements.

The most recent analyst rating on (FLOC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Flowco Holdings Inc Class A stock, see the FLOC Stock Forecast page.

Flowco Holdings Announces Quarterly Dividend for Class A

On October 31, 2025, Flowco Holdings Inc. announced a quarterly cash dividend of $0.08 per share for its Class A common stock, payable on November 26, 2025, to shareholders of record as of November 14, 2025. The company’s operating subsidiary, Flowco MergeCo LLC, will also distribute $0.08 per unit to its common unit holders. This announcement reflects Flowco’s ongoing commitment to providing regular dividends, although future dividends will depend on various factors, including financial performance and capital requirements.

The most recent analyst rating on (FLOC) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Flowco Holdings Inc Class A stock, see the FLOC Stock Forecast page.