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Forgent Power Solutions, Inc. Class A
(NYSE:FPS)
Select Model
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Rating:43Neutral
Price Target:
$31.00
▼(-4.35% Downside)
Action:Reiterated
Date:07/29/26
The score is held down primarily by weak financial quality (higher leverage and materially negative free cash flow despite improved profitability) and a poor technical trend with the stock well below key moving averages. Valuation also looks unfavorable given the extremely high P/E, while the refinancing event provides a modest positive offset through lower borrowing costs.
Positive Factors
Revenue & Profitability Recovery
A large revenue increase to $753.2M and return to net income in FY2025 demonstrates the company can scale revenue and restore profitability. This structural recovery strengthens cash‑flow potential, improves debt servicing capacity, and supports longer‑term reinvestment and strategic flexibility.
Negative Factors
Elevated Leverage
Higher absolute debt and a ~1.68x debt/equity ratio raise fixed interest obligations and reduce capital allocation flexibility. Elevated leverage leaves the firm more exposed to revenue shocks, constrains strategic investments, and increases refinancing and covenant‑related risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability Recovery
A large revenue increase to $753.2M and return to net income in FY2025 demonstrates the company can scale revenue and restore profitability. This structural recovery strengthens cash‑flow potential, improves debt servicing capacity, and supports longer‑term reinvestment and strategic flexibility.
Read all positive factors
Forgent Power Solutions, Inc. Class A (FPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.55B
Dividend YieldN/A
Average Volume (3M)8.67M
Price to Earnings (P/E)7537.2
Beta (1Y)1.33
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)<0.01
Shares Outstanding274,527,100
10 Day Avg. Volume9,420,697
30 Day Avg. Volume8,668,392
Financial Highlights & Ratios
PEG Ratio-2.38
Price to Book (P/B)17.87
Price to Sales (P/S)8.89
P/FCF Ratio-171.25
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue13.15
Enterprise Value/Gross Profit42.45
Enterprise Value/Ebitda119.17
Forecast
1Y Price Target
$59.45Price Target Upside83.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.14
Revenue Forecast (FY)$2.09B
Forgent Power Solutions, Inc. Class A Business Overview & Revenue Model
Company Description
Forgent Power Solutions, Inc. specializes in the engineering and manufacturing of electrical power distribution systems. These critical solutions are vital for cutting-edge data centers, extensive power grids, and various energy-demanding industri...
Forgent Power Solutions, Inc. Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 1.20B | 753.19M | 181.31M |
| Gross Profit | 370.54M | 278.07M | 67.74M |
| EBITDA | 131.99M | 142.43M | 18.00M |
| Net Income | 4.62M | 15.20M | -17.82M |
Balance Sheet | |||
| Total Assets | 1.85B | 1.54B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 93.83M | 111.32M | 186.40M |
| Total Debt | 707.56M | 630.48M | 523.37M |
| Total Liabilities | 1.27B | 963.40M | 759.06M |
| Stockholders Equity | 446.48M | 374.53M | 517.95M |
Cash Flow | |||
| Free Cash Flow | -94.40M | -39.09M | -7.54M |
| Operating Cash Flow | 31.23M | 45.02M | -4.63M |
| Investing Cash Flow | -125.63M | -84.11M | -744.65M |
| Financing Cash Flow | 12.94M | -35.98M | 935.68M |
Forgent Power Solutions, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $26.31B | 28.50 | 24.45% | 1.12% | 7.18% | 14.32% | |
78 Outperform | $24.14B | 46.63 | 13.36% | 0.55% | 34.18% | -15.12% | |
77 Outperform | $7.99B | 39.00 | 28.61% | 0.15% | 4.50% | 7.18% | |
73 Outperform | $6.94B | 23.41 | 15.60% | 0.55% | 3.70% | -14.17% | |
66 Neutral | $11.10B | 54.04 | 14.35% | 0.13% | 22.19% | 157.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
43 Neutral | $11.55B | 7,537.21 | 1.16% | ― | ― | ― |
* Industrials Sector Average
FPS
Forgent Power Solutions, Inc. Class A
32.41
3.41
11.76%
AEIS
Advanced Energy
273.42
131.46
92.61%
ENS
EnerSys
183.57
90.64
97.54%
HUBB
Hubbell B
483.66
61.43
14.55%
POWL
Powell Industries
201.00
123.44
159.15%
NVT
nVent Electric
141.75
62.56
79.00%
Forgent Power Solutions, Inc. Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Forgent Power Refinances Term Loans, Lowers Borrowing Costs
Positive
Jun 26, 2026
On June 23, 2026, Forgent Power LLC, a subsidiary of Forgent Power Solutions, Inc., amended its December 19, 2025 credit agreement, refinancing $600 million of initial term loans with new refinancing term loans at a reduced interest margin. The co...
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.