Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $49.24M
• Dividend Yield: N/A
• Average Volume (3M): 255.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 7.30%
• EPS Growth: -247.48%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 30,777,433
• 10 Day Avg. Volume: 726,867
• 30 Day Avg. Volume: 255,043
• PEG Ratio: 0.07
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 161.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $1.50 ▼(-1.96%Downside)

Fuel Tech's overall score reflects a mix of both strengths and challenges. While the earnings call indicates potential growth, particularly in the FUEL CHEM segment, financial performance remains a concern with ongoing losses and negative cash flows. Technical analysis suggests positive momentum, but valuation metrics indicate overvaluation, lacking a dividend yield and presenting a negative P/E ratio. The company's strong balance sheet and increased project backlog are positives, but strategic improvements are needed for sustainable growth.

Positive Factors

Financial Position

The company holds $31.2M in cash with no debt, highlighting a strong financial position.

Market Opportunities

Order wins in the data center market are expected to be significant catalysts for growth.

Revenue Growth

Revenues for the FUEL CHEM segment grew by 93% year-over-year, indicating strong performance and demand.

Negative Factors

Revenue Guidance

Revenues for 2024 came in toward the lower end of the company’s guided range due to delayed projects and timing of APC awards.

Fuel Tech Business Overview & Revenue Model

Company Description

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through two segments, Air Pollution Control Technology and FUEL CHEM Technology. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources by low and ultra-low NOx burners; over-fire air systems; NOxOUT and HERT selective non-catalytic reduction systems; selective catalytic reduction systems comprising ammonia injection grid, and graduated straightening grid systems; I-NOx systems; ESP Processes and Services; ULTRA technology; and flue gas conditioning systems; and burner systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, and university and district heating markets; and the owners of boilers, furnaces, and other combustion units. The company was incorporated in 1987 and is headquartered in Warrenville, Illinois.

How the Company Makes Money

Fuel Tech generates revenue primarily through the sale and licensing of its proprietary technologies and solutions that help clients comply with environmental regulations and optimize their combustion processes. The company's key revenue streams include the sale of air pollution control systems, such as its Selective Non-Catalytic Reduction (SNCR) systems, and services related to combustion optimization. Additionally, Fuel Tech earns income from engineering and consulting services that support clients in improving operational efficiency and reducing emissions. Significant partnerships with industrial and utility companies, as well as ongoing regulatory requirements for emissions control, contribute to the company's earnings by ensuring a steady demand for its innovative solutions.

Fuel Tech Financial Statement Overview

Summary

Fuel Tech is facing significant financial challenges, with declining revenues and persistent profitability issues. While the balance sheet remains strong with low leverage, the negative cash flows and ongoing losses indicate operational difficulties that need addressing. Stability in gross margins offers some hope, but a strategic turnaround is essential for future growth.

Income Statement

Fuel Tech has faced declining revenue over the years, with a recent drop from $27.1M in 2023 to $25.1M in 2024. The gross profit margin showed stability at around 42%, but the company has consistently reported negative EBIT and net income, indicating profitability challenges. The net profit margin was -7.7% in 2024, reflecting ongoing losses.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio of approximately 86%. However, the debt-to-equity ratio remains low at 0.01, indicating minimal leverage. Despite a solid asset base, the company has faced declining equity over the years.

Cash Flow

Fuel Tech's cash flow performance has been weak, with negative operating cash flow in 2024 at -$3.4M. The free cash flow has also been negative, dropping from $0.28M in 2023 to -$3.4M in 2024. The operating cash flow to net income ratio suggests cash generation issues relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.13M	27.08M	26.94M	24.26M	22.55M
	Gross Profit
10.62M	11.66M	11.64M	11.90M	10.64M
	EBIT
-4.70M	-2.66M	-1.53M	81.00K	-4.14M
	EBITDA
-1.41M	-1.11M	-931.00K	-748.00K	-3.37M
	Net Income Common Stockholders
-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.69M	29.71M	26.31M	35.89M	10.64M
	Total Assets
48.80M	50.39M	50.12M	49.97M	30.09M
	Total Debt
625.00K	614.00K	191.00K	235.00K	1.94M
	Net Debt
-7.88M	-16.96M	-23.14M	-35.66M	-8.70M
	Total Liabilities
6.84M	6.67M	5.25M	3.77M	7.77M
	Stockholders Equity
41.95M	43.71M	44.88M	46.20M	22.32M
Cash Flow		Free Cash Flow
-3.43M	278.00K	-4.34M	677.00K	-2.95M
	Operating Cash Flow
-3.43M	696.00K	-4.14M	761.00K	-2.71M
	Investing Cash Flow
-5.44M	-6.44M	-9.48M	-84.00K	-247.00K
	Financing Cash Flow
-95.00K	42.00K	-17.00K	23.98M	1.28M

Fuel Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.05, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 73.03 is Negative, neither overbought nor oversold. The STOCH value of 75.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTEK.

Fuel Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
CLWT	65 Neutral	$8.51M	11.75	4.68%	―	-14.25%	-59.84%
FTEK	57 Neutral	$49.24M	―	-6.95%	―	7.30%	-247.48%
CLIR	55 Neutral	$32.51M	―	-75.96%	―	10.88%	3.57%
TOMZ	55 Neutral	$17.01M	―	-62.68%	―	19.09%	3.50%
LIQT	47 Neutral	$16.63M	―	-69.66%	―	-17.77%	0.86%
SCWO	39 Underperform	$45.26M	―	-110.71%	―	―	―

Fuel Tech Corporate Events

Fuel Tech Releases Updated Corporate Presentation

Fuel Tech, Inc. announced that it will post an updated corporate presentation on its website, dated May 21, 2025. This presentation is part of a regulatory filing and is not subject to certain liabilities, indicating a strategic move to update stakeholders on the company’s current status and future plans.

The most recent analyst rating on (FTEK) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Fuel Tech stock, see the FTEK Stock Forecast page.