Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $78.31M
• Dividend Yield: N/A
• Average Volume (3M): 326.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -5.66%
• EPS Growth: -397.46%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 31,074,438
• 10 Day Avg. Volume: 216,379
• 30 Day Avg. Volume: 326,679
• PEG Ratio: -0.65
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -8.42
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: -17.97
• 1Y Price Target: $4.00
• Price Target Upside: 118.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-18.03% Downside)

Fuel Tech's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges with declining revenues and profitability issues, which are reflected in its negative cash flows and low valuation. The technical indicators suggest a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. While the earnings call highlighted some positive developments, such as growth in the FUEL CHEM segment and strategic acquisitions, these factors were not enough to offset the overall negative sentiment.

Positive Factors

Strong Financial Position

Fuel Tech's strong cash position and absence of long-term debt provide financial stability and flexibility to invest in growth opportunities, supporting long-term business sustainability.

FUEL CHEM Segment Growth

Growth in the FUEL CHEM segment indicates strong demand for Fuel Tech's solutions, contributing to revenue diversification and enhancing competitive positioning in the environmental solutions market.

Strategic Acquisition

The acquisition of Wahlco's assets strengthens Fuel Tech's product offerings, potentially increasing market share and opening new revenue streams in the air pollution control sector.

Negative Factors

Declining Revenues

A decline in consolidated revenues suggests challenges in maintaining sales momentum, which could impact long-term growth prospects and necessitate strategic adjustments.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and may limit the company's ability to fund new projects or weather economic downturns, affecting long-term viability.

Profitability Challenges

Ongoing profitability issues highlight the need for operational improvements and cost management to achieve sustainable financial health and investor confidence.

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 a combination of product sales, service contracts, and ongoing maintenance agreements. The key revenue streams include the sale of its patented technologies for NOx reduction and other emissions control solutions, which are often sold to power generation facilities and industrial operators. Additionally, Fuel Tech provides consulting and engineering services related to the implementation of its products, which further contributes to its earnings. The company also engages in strategic partnerships with industry players and regulatory agencies, allowing it to expand its market reach and enhance its product offerings. Significant factors contributing to its earnings include the increasing global focus on environmental regulations and the demand for cleaner energy solutions.

Fuel Tech Financial Statement Overview

Summary

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

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	24.71M	25.13M	27.08M	26.94M	24.26M	22.55M
Gross Profit	11.38M	10.62M	11.66M	11.64M	11.90M	10.64M
EBITDA	-3.09M	-1.41M	-1.11M	-931.00K	828.00K	-3.37M
Net Income	-3.01M	-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet
Total Assets	47.91M	48.80M	50.39M	50.12M	49.97M	30.09M
Cash, Cash Equivalents and Short-Term Investments	25.86M	18.69M	29.71M	26.31M	35.89M	10.64M
Total Debt	601.00K	625.00K	614.00K	191.00K	235.00K	1.94M
Total Liabilities	6.90M	6.84M	6.67M	5.28M	3.77M	7.77M
Stockholders Equity	41.01M	41.95M	43.71M	44.84M	46.20M	22.32M
Cash Flow
Free Cash Flow	2.68M	-3.81M	278.00K	-4.34M	677.00K	-2.95M
Operating Cash Flow	2.94M	-3.43M	696.00K	-4.14M	761.00K	-2.71M
Investing Cash Flow	-1.29M	-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: Negative
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 1.87, below the 50-day MA of 2.49, and below the 200-day MA of 2.06, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTEK.

Fuel Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$8.15M	11.25	―	―	-14.25%	-59.84%
CLIR	48 Neutral	$45.34M	-7.69	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$17.81M	―	-73.79%	―	10.97%	44.99%
FTEK	44 Neutral	$78.31M	-23.98	-7.10%	―	-5.66%	-397.46%
TOMZ	41 Neutral	$15.88M	―	-108.76%	―	-30.61%	-111.40%
SCWO	39 Underperform	$65.53M	-3.44	-232.63%	―	―	―

Fuel Tech Corporate Events

Fuel Tech Inc’s Steady Risk Landscape: Navigating Unchanged Challenges for 2024

Fuel Tech Inc faces a consistent risk landscape as outlined in their Annual Report on Form 10-K for the fiscal year ending December 31, 2024, with no material changes reported. This stability in risk factors suggests that the company continues to navigate the same challenges without significant new threats emerging. Stakeholders should consider this continuity when assessing the company’s future performance and strategic planning. It remains crucial for Fuel Tech Inc to maintain vigilance in managing these persistent risks to safeguard its operational and financial health.

Fuel Tech Inc. Reports Strong Q3 2025 Results

Fuel Tech Inc., a technology company specializing in emissions control and water treatment solutions, has reported its financial results for the third quarter of 2025. The company operates in the utility and industrial sectors, focusing on advanced engineering processes to enhance environmental sustainability.

Fuel Tech’s Earnings Call: Mixed Results with Optimistic Outlook

Fuel Tech’s recent earnings call painted a mixed picture for investors. The company showcased a strong financial position and growth in its FUEL CHEM segment, alongside strategic acquisitions. However, these positives were tempered by a decline in consolidated and APC segment revenues. Despite these challenges, Fuel Tech remains optimistic about future opportunities, particularly in the data center market and with its recently acquired assets.