FST Corp (KBSX) AI Stock Analysis

• Market Cap: $55.06M
• Dividend Yield: N/A
• Average Volume (3M): 6.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: N/A
• EPS Growth: -267.14%
• Country: US
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 44,766,003
• 10 Day Avg. Volume: 3,328
• 30 Day Avg. Volume: 6,006
• PEG Ratio: 0.13
• Price to Book (P/B): 6.69
• Price to Sales (P/S): 1.31
• P/FCF Ratio: -44.10
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: -42.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.00 ▼(-32.89% Downside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is weighed down primarily by weak financial performance—multi-year losses, a thinner equity cushion alongside higher debt, and sustained negative operating/free cash flow. Technicals add pressure given the persistent downtrend and negative MACD. Valuation is constrained by negative earnings (negative P/E) and no dividend yield support.

Positive Factors

Sustained revenue recovery

Accelerating top-line growth across 2024–2025 indicates the company can win sales and regain market share within the steel segment. Durable revenue momentum supports operational scaling, helps absorb fixed costs over time, and provides a platform to restore margins if cost discipline and product mix improvements are sustained.

Stable asset base and positive gross profit

A stable asset base and maintained gross profit suggest underlying operational capacity and inventory/plant scale remain intact. That durability lets the company leverage existing production capability to capture cyclical demand, avoiding heavy capex and enabling margin recovery once SG&A and overheads are addressed.

Extended share-forward maturity eases near-term pressure

Lengthening the prepaid share-forward maturity to two years spreads the financing timeline and delays potential share overhang or cash settlement pressure. Structurally this reduces immediate liquidity strain and gives management more runway to improve operations or renegotiate terms before a concentrated funding cliff.

Negative Factors

Rising leverage and thin equity cushion

A sharply higher debt load and materially reduced equity weaken the capital structure and limit financial flexibility. With a thinner equity cushion, losses or asset write‑downs can quickly impair solvency metrics, increase borrowing costs, and constrain the company's ability to invest or withstand steel-cycle volatility over the medium term.

Consistent negative operating and free cash flow

Sustained negative operating and free cash flow forces reliance on external financing to fund operations and service debt. Over months this elevates refinancing and covenant risk, limits capacity for capex or working-capital buffers, and increases dilution or costly borrowing if operational cash generation does not recover.

Multi-year profitability deterioration

A shift from profit in 2022 to losses through 2023–2025 erodes retained earnings and signals weak operating leverage. Persistent losses reduce internal funding, damage stakeholder confidence, and require structural fixes to cost base or pricing to restore sustainable profitability over the coming quarters.

FST Corp Business Overview & Revenue Model

Company Description

FST Corp (KBSX) is a technology company specializing in advanced biometric identification solutions. The company operates primarily in the security and identity management sectors, providing products and services that enhance security and streamline access control for businesses and governmental organizations. FST Corp's core offerings include facial recognition systems, access control systems, and comprehensive identity management software that integrates with existing security infrastructures.

How the Company Makes Money

FST Corp generates revenue through the sale of its biometric identification products and software solutions, which are typically offered on a license or subscription basis. Key revenue streams include direct sales of hardware components, such as cameras and sensors, as well as software licensing fees for its identity management platforms. The company may also earn income through installation services, ongoing maintenance contracts, and training programs for clients. Significant partnerships with security firms and technology integrators further enhance its market reach and revenue potential, allowing FST Corp to tap into larger projects and governmental contracts.

FST Corp Financial Statement Overview

Summary

Despite strong revenue growth in 2024 (+27.0%) and continued growth in 2025 (+8.8%), profitability has deteriorated into sizable multi-year losses (2023–2025). Leverage rose sharply (debt up to ~$35.5M in 2025) while equity fell significantly (~$9.4M), and operating cash flow/free cash flow have been negative since 2023—together indicating elevated financial risk and weak earnings quality.

Income Statement

Revenue rebounded strongly in 2024 (+27.0%) and continued to grow in 2025 (+8.8%), but profitability has deteriorated materially. The company moved from solid profits in 2022 (positive operating profit and net income) to sizable losses in 2023–2025, with negative operating profit and negative net income across the last three annual periods. Gross profit remains positive, but the cost structure below gross profit is pressuring results and points to weak earnings quality and limited operating leverage in the current environment.

Balance Sheet

Leverage has increased sharply: total debt rose from about $15.4M (2024) to about $35.5M (2025), while equity fell significantly from about $22.8M to about $9.4M. This combination weakens the capital structure and reduces financial flexibility. Total assets were relatively stable (~$58–63M range in recent years), but the much thinner equity cushion increases risk if losses persist or if the steel cycle turns unfavorable.

Cash Flow

Cash generation has been inconsistent and recently weak. Operating cash flow was positive in 2020–2022 but turned negative in 2023–2025, and free cash flow is negative in 2023–2025 as well, including a steep deterioration in 2025 versus 2024. While 2024 free cash flow roughly matched the net loss, the ongoing negative operating cash flow and negative free cash flow raise funding risk and increase dependence on external capital (especially concerning given the higher debt load).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.97M	36.50M	28.73M	49.78M	38.94M
Gross Profit	20.63M	15.71M	13.44M	26.57M	16.80M
EBITDA	-1.47M	-3.32M	-1.30M	16.07M	4.26M
Net Income	-7.12M	-3.24M	-2.17M	9.38M	-90.53K
Balance Sheet
Total Assets	59.82M	58.58M	63.31M	59.98M	46.59M
Cash, Cash Equivalents and Short-Term Investments	7.18M	5.16M	8.90M	20.74M	10.55M
Total Debt	35.47M	15.42M	16.03M	9.36M	15.48M
Total Liabilities	50.31M	35.58M	35.88M	27.56M	21.56M
Stockholders Equity	9.37M	22.83M	27.42M	32.42M	25.03M
Cash Flow
Free Cash Flow	-1.42M	-1.31M	-22.80M	10.24M	3.07M
Operating Cash Flow	-369.45K	-1.31M	-11.21M	12.72M	7.20M
Investing Cash Flow	-1.26M	3.64M	-11.59M	-2.46M	-6.41M
Financing Cash Flow	3.32M	-2.33M	11.30M	2.30M	826.01K

FST Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.49
• 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 KBSX, the sentiment is Neutral. The current price of 1.49 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.28, and below the 200-day MA of 1.54, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KBSX.

FST Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRD	67 Neutral	$132.36M	8.37	8.47%	0.75%	8.72%	43.14%
ACNT	64 Neutral	$160.70M	184.91	-3.84%	―	-29.03%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUDI	46 Neutral	$17.59M	-12.60	-0.69%	―	-20.24%	-119.83%
KBSX	42 Neutral	$55.06M	-2.64	―	―	―	-267.14%

FST Corp Corporate Events

FST Corp. Reveals Higher Leverage and Shrinking Equity in Unaudited 2025 Results

On February 11, 2026, FST Corp. filed a Form 6‑K announcing the release of its unaudited condensed consolidated financial statements and management discussion and analysis for the year ended December 31, 2025. The filing shows total assets of $59.8 million versus $58.6 million a year earlier, alongside a substantial rise in total liabilities to $50.3 million and a marked drop in total equity to $9.5 million, reflecting higher bank borrowings, new derivative and warrant liabilities, and negative retained earnings.

The disclosure highlights that current liabilities climbed sharply, driven by increased short‑term bank loans, higher payables and accrued expenses, and recognition of an OET derivative liability, signaling greater leverage and financial obligations entering 2026. For stakeholders, the shift from positive retained earnings to an accumulated deficit and the emergence of a share subscription receivable and treasury stock underscore growing balance‑sheet pressure despite revenue growth, making the 2025 results a key reference point for assessing FST Corp.’s risk profile and capital structure.

The most recent analyst rating on (KBSX) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on FST Corp stock, see the KBSX Stock Forecast page.

FST Corp. Extends Maturity of SPAC-Era Share Forward Deal to Two Years

FST Corp., the post-SPAC parent of Femco Steel Technology Co., has disclosed further details of its financing arrangements surrounding its merger with Chenghe Acquisition I Co., under which Chenghe merged into a wholly owned FST Corp. subsidiary and was renamed FST Ltd. On December 27, 2024, the company and Femco Steel Technology entered into a prepaid share forward transaction with Harraden Circle Investors and Harraden Circle Special Opportunities covering up to 3 million Class A shares, with an initial price tied to the SPAC redemption price and a prepayment made at the close of the business combination; the investors also agreed to waive most redemption rights on these shares, supporting deal completion and post-merger float. On January 9, 2026, FST Corp. signed an amendment extending the valuation and maturity date of the share forward from 12 to 24 months after the business combination’s closing, effectively lengthening the life of this structured financing and potentially smoothing the company’s capital structure and share overhang over a longer post-merger period, while leaving all other terms in force.

The most recent analyst rating on (KBSX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on FST Corp stock, see the KBSX Stock Forecast page.

FST Corp. Shareholders Approve 2025 Equity Incentive Plan

FST Corp. held its Annual General Meeting of Shareholders on December 8, 2025, where the shareholders approved the 2025 Equity Incentive Plan. The meeting achieved a quorum with 35,661,357 shares represented, out of 44,766,003 outstanding shares. The approval of the 2025 Plan Proposal reflects a strong consensus among shareholders, with 35,658,358 votes in favor and only 2,999 against, indicating robust support for the company’s strategic initiatives.

The most recent analyst rating on (KBSX) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on FST Corp stock, see the KBSX Stock Forecast page.