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Flotek (FTK)
NYSE:FTK
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Flotek
(NYSE:FTK)
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Rating:65Neutral
Price Target:
$12.50
▼(-14.68% Downside)
Flotek's strong earnings call performance, with significant revenue and profit growth, is the most impactful factor driving the score. Financial recovery is evident, but cash flow concerns and technical indicators suggest caution. The valuation is reasonable, but the lack of a dividend yield may deter some investors.
Flotek (FTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$437.42M
Dividend YieldN/A
Average Volume (3M)433.21K
Price to Earnings (P/E)33.2
Beta (1Y)1.65
Revenue Growth21.72%
EPS Growth98.73%
CountryUS
Employees142
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding29,857,883
10 Day Avg. Volume569,764
30 Day Avg. Volume433,215
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)2.47
Price to Sales (P/S)1.50
P/FCF Ratio198.07
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit12.06
Enterprise Value/Ebitda30.92
Forecast
1Y Price Target
$15.50Price Target Upside5.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Flotek Business Overview & Revenue Model
Company DescriptionFlotek Industries, Inc. operates as a technology-driven chemistry and data company that serves customers across industrial, commercial, and consumer markets in the United States, the United Arab Emirates, and internationally. It operates in two segments, Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers and cleans surfaces in commercial and personal settings to help reduce the spread of bacteria, viruses, and germs. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. This segment's data platforms combine the energy industry's field-deployable, inline optical analyzer with proprietary cloud visualization and analytics. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. The company was incorporated in 1985 and is headquartered in Houston, Texas.
How the Company Makes MoneyFlotek generates revenue primarily through the sale of its specialty chemical products and services to oil and gas exploration and production companies. Key revenue streams include the sale of chemical formulations used in drilling, completion, and production processes, as well as the provision of technical services that support the implementation and optimization of these products in the field. The company also benefits from strategic partnerships and collaborations with major oil and gas operators, which help to expand its market reach and enhance product development. Additionally, Flotek's focus on eco-friendly solutions may position it favorably in a market increasingly concerned with sustainability, potentially attracting clients looking for compliant and environmentally responsible options.
Flotek Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook with significant revenue and profit growth, particularly in the Data Analytics segment, which offset concerns about geopolitical challenges and potential volatility in the Chemistry segment.Q2-2025 Updates
Positive Updates
Sixth Consecutive Quarter of Revenue Growth
Flotek Industries experienced its sixth consecutive quarter of revenue and gross profit growth, with a 26% increase in total revenue compared to the second quarter of 2024.
Data Analytics Segment Expansion
Data Analytics segment revenue increased by 189%, marking its strongest quarter ever. The segment also secured a multiyear contract estimated to deliver $156 million in revenue.
Significant Increase in Gross Profit
Gross profit increased by 57% compared to the second quarter of 2024, with a gross profit margin rising to 25%.
Adjusted EBITDA Growth
Adjusted EBITDA was up 113% compared to the second quarter of 2024 and more than 20% sequentially.
Zero Lost Time Incidents
Achieved significant operational milestones with zero lost time incidents in field operations.
PWRtek Assets Impact
New PWRtek assets generated $3.2 million in revenues and contributed roughly $3 million in gross profit, driving total company gross margins for the quarter to 25%.
Negative Updates
Geopolitical and Macroeconomic Challenges
The sector faced dynamic geopolitical and macroeconomic challenges, generating volatility within the commodities market.
Potential Chemistry Segment Pressure
Anticipated potential commodity price volatility in the second half of 2025 that could impact the Chemistry segment.
Company Guidance
During Flotek Industries' Second Quarter 2025 Earnings Conference Call, the company reported significant financial and operational achievements. Total revenue increased by 26% compared to the same quarter in 2024, with notable growth in the Data Analytics segment, which saw a 189% increase, and a 38% rise in external chemistry revenue. Gross profit surged by 57%, elevating the gross profit margin to 25%. The company achieved a net income of $1.8 million, which, adjusted for $4.2 million in asset acquisition expenses, resulted in an adjusted net income of $6 million, marking a 202% improvement from the previous year and more than a 10% sequential increase. Additionally, adjusted EBITDA rose by 113% year-over-year and over 20% sequentially. Flotek also highlighted their acquisition of 30 real-time gas monitoring and dual fuel optimization assets, expected to be operational by January 2026, and secured a multiyear contract in the Data Analytics segment projected to generate $156 million in revenue. Despite the macroeconomic challenges, Flotek demonstrated robust performance, maintaining a perfect safety record with zero lost time incidents and promising continued growth, innovation, and value creation for shareholders and customers.Flotek Financial Statement Overview
Summary
Flotek shows signs of financial recovery with improved profitability and reduced leverage. Revenue growth and profit margins are positive, but cash flow generation remains a concern. The balance sheet is stronger, but past high leverage levels pose a potential risk.Income Statement
Flotek's TTM (Trailing-Twelve-Months) revenue growth is positive at 6.04%, indicating a recovery from previous declines. The gross profit margin improved slightly to 21.18%, and the net profit margin increased to 7.09%, reflecting better cost management. However, EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.65
Positive
Balance Sheet
The company's debt-to-equity ratio has significantly improved to 0.06, indicating a strong reduction in leverage. Return on equity is healthy at 12.76%, showing effective use of equity capital. The equity ratio is stable, reflecting a solid financial position. However, past high leverage remains a potential risk.70
Positive
Cash Flow
Free cash flow growth is negative at -46.92%, highlighting challenges in generating cash. The operating cash flow to net income ratio is low at 0.15, indicating potential issues in converting profits into cash. Despite this, the free cash flow to net income ratio is relatively strong at 0.65, suggesting some efficiency in cash management.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 214.21M | 187.03M | 188.06M | 136.09M | 43.27M | 53.14M |
| Gross Profit | 48.25M | 39.39M | 24.26M | -6.70M | 3.26M | 49.73M |
| EBITDA | 18.81M | 13.13M | 36.50M | -34.54M | -29.63M | -138.80M |
| Net Income | 14.11M | 10.50M | 24.71M | -42.30M | -30.53M | -136.45M |
Balance Sheet | ||||||
| Total Assets | 172.24M | 170.80M | 157.51M | 164.81M | 50.24M | 86.21M |
| Cash, Cash Equivalents and Short-Term Investments | 5.03M | 4.40M | 5.85M | 12.29M | 11.53M | 38.66M |
| Total Debt | 52.10M | 12.85M | 17.88M | 119.58M | 13.26M | 14.80M |
| Total Liabilities | 100.39M | 56.90M | 55.55M | 162.21M | 30.05M | 39.04M |
| Stockholders Equity | 71.85M | 113.90M | 101.96M | 2.60M | 20.19M | 47.17M |
Cash Flow | ||||||
| Free Cash Flow | 2.34M | 1.42M | -12.38M | -45.05M | -25.88M | -49.27M |
| Operating Cash Flow | 5.36M | 3.36M | -11.30M | -44.63M | -25.84M | -47.84M |
| Investing Cash Flow | -2.92M | -1.82M | -1.01M | 5.33M | 112.00K | -17.70M |
| Financing Cash Flow | -2.09M | -3.12M | 5.93M | 38.27M | -372.00K | 3.73M |
Flotek Technical Analysis
Positive
14.65
Price Trends
12.26
Positive
13.27
Positive
10.72
Positive
Market Momentum
0.48
Negative
74.21
Negative
81.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTK, the sentiment is Positive. The current price of 14.65 is above the 20-day moving average (MA) of 12.26, above the 50-day MA of 12.26, and above the 200-day MA of 10.72, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 74.21 is Negative, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTK.
Flotek Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $360.97M | 20.21 | 6.73% | 0.35% | 14.77% | 34.74% | |
65 Neutral | $437.42M | 33.21 | 15.85% | ― | 21.72% | 98.73% | |
62 Neutral | $244.75M | -17.99 | -4.89% | ― | -10.77% | -229.81% | |
60 Neutral | $342.46M | -3.23 | -32.77% | ― | 3.86% | -294.41% | |
53 Neutral | $375.67M | 55.21 | -1.65% | ― | -12.15% | ― | |
49 Neutral | $93.22M | 117.58 | 0.33% | ― | 3.43% | -36.73% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
FTK
Flotek
14.65
9.67
194.18%
FET
Forum Energy Tech
28.77
13.31
86.09%
NGS
Natural Gas Services Group
28.78
9.75
51.23%
OIS
Oil States International
6.20
1.60
34.78%
GEOS
Geospace Technologies
19.09
8.75
84.62%
SND
Smart Sand
2.14
0.35
19.55%
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.