Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $94.16M
• Dividend Yield: N/A
• Average Volume (3M): 329.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -4.78%
• EPS Growth: -1359.72%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 31,074,438
• 10 Day Avg. Volume: 450,566
• 30 Day Avg. Volume: 329,592
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: -17.75
• 1Y Price Target: $3.50
• Price Target Upside: 15.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $3.00 ▼(-0.99% Downside)

Fuel Tech's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative cash flows. While technical analysis shows some positive trends, the poor valuation metrics and neutral sentiment from the earnings call further weigh down the score. The company's strong balance sheet and potential growth in AI data centers offer some optimism, but significant operational improvements are needed.

Positive Factors

Strong Financial Position

Fuel Tech's strong cash position and lack of long-term debt provide financial stability and flexibility to invest in growth opportunities and weather economic uncertainties.

Increase in Gross Margin

The increase in gross margin indicates improved operational efficiency and cost management, enhancing profitability potential over the long term.

Strong Pipeline in AI Data Centers

Fuel Tech's focus on AI and data center infrastructure positions it well for future growth, tapping into a high-demand sector with substantial revenue potential.

Negative Factors

Decline in Quarterly Revenue

The decline in revenue suggests challenges in maintaining sales momentum, which could impact long-term growth and market competitiveness if not addressed.

Operating Loss

Rising operating losses highlight ongoing profitability issues, which may strain resources and hinder the company's ability to invest in strategic initiatives.

Reduced Revenue Guidance

Lowered revenue guidance reflects potential challenges in securing contracts, which could limit growth prospects and investor confidence in the near term.

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 through the sale of its proprietary technologies and services, which include system designs, installation, and ongoing support for its air pollution control solutions. Key revenue streams include the sale of NOx reduction systems, fuel additives, and consulting services. The company also earns revenue from long-term contracts for maintenance and operational support, which provide a steady income stream. Significant partnerships with industrial clients, especially in the power generation sector, enhance Fuel Tech's market presence and contribute to its earnings by providing access to larger projects and contracts focused on compliance with environmental regulations.

Fuel Tech Financial Statement Overview

Summary

Fuel Tech faces significant financial challenges, with declining revenues and persistent profitability issues. Despite a strong balance sheet with low leverage, negative cash flows and ongoing losses indicate operational difficulties. Stability in gross margins offers some hope, but a strategic turnaround is essential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.07M	25.13M	27.08M	26.94M	24.26M	22.55M
Gross Profit	10.96M	10.62M	11.66M	11.64M	11.90M	10.64M
EBITDA	-3.13M	-1.41M	-1.11M	-931.00K	-748.00K	-3.37M
Net Income	-3.23M	-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet
Total Assets	47.00M	48.80M	50.39M	50.12M	49.97M	30.09M
Cash, Cash Equivalents and Short-Term Investments	23.01M	18.69M	29.71M	26.31M	35.89M	10.64M
Total Debt	696.00K	625.00K	614.00K	191.00K	235.00K	1.94M
Total Liabilities	6.42M	6.84M	6.67M	5.25M	3.77M	7.77M
Stockholders Equity	40.59M	41.95M	43.71M	44.88M	46.20M	22.32M
Cash Flow
Free Cash Flow	544.00K	-3.81M	278.00K	-4.34M	677.00K	-2.95M
Operating Cash Flow	718.00K	-3.43M	696.00K	-4.14M	761.00K	-2.71M
Investing Cash Flow	-432.00K	-5.44M	-6.44M	-9.48M	-84.00K	-247.00K
Financing Cash Flow	-222.00K	-95.00K	42.00K	-17.00K	23.98M	1.28M

Fuel Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 3.03 is below the 20-day moving average (MA) of 3.16, above the 50-day MA of 2.95, and above the 200-day MA of 1.72, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 24.97 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
CLWT	72 Outperform	10.58M	14.60	4.66%	―	-14.25%	-59.84%
CLIR	56 Neutral	42.26M	-7.17	-38.50%	―	19.03%	11.70%
FTEK	53 Neutral	$94.16M	―	-7.69%	―	-4.78%	-1359.72%
LIQT	50 Neutral	24.80M	-1.92	-74.27%	―	-12.76%	15.23%
TOMZ	46 Neutral	20.68M	-4.40	-109.22%	―	-12.72%	-36.80%
SCWO	39 Underperform	46.58M	-2.74	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.