ProFrac Holding (ACDC) AI Stock Analysis

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ProFrac Holding

(NASDAQ:ACDC)

44Neutral

The overall score reflects significant financial challenges, highlighted by poor profitability and high leverage. Technical indicators show a bearish trend, further weighing on the stock's outlook. Although the earnings call presented some positive initiatives and future growth strategies, immediate concerns such as revenue declines and pricing pressures impact the score. Valuation metrics are also unfavorable, adding to the cautionary outlook.

ProFrac Holding (ACDC) vs. S&P 500 (SPY)

Market Cap

$764.05M

Dividend YieldN/A

Average Volume (3M)701.61K

Price to Earnings (P/E)―

Beta (1Y)1.65

Revenue Growth-16.51%

EPS Growth-208.49%

CountryUS

Employees3,077

SectorEnergy

Sector Strength52

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)-1.37

Shares Outstanding160,178,440

10 Day Avg. Volume1,001,708

30 Day Avg. Volume701,610

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.56

Price to Cash Flow (P/CF)4.00

P/FCF Ratio3.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.50

Price Target Upside39.78% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering3

ProFrac Holding Business Overview & Revenue Model

Company DescriptionProFrac Holding Corp., a vertically integrated and energy services company, provides hydraulic fracturing, completion, and other products and services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, seats, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.

How the Company Makes MoneyProFrac Holding makes money predominantly through providing hydraulic fracturing services to oil and gas exploration and production companies. Its revenue model is based on service contracts and agreements with these companies, where it charges fees for the use of its equipment and expertise in fracturing operations. Key revenue streams include the sale of pressure pumping services, leasing of fracturing equipment, and offering integrated completion solutions. The company also benefits from strategic partnerships and long-term agreements with major oil producers, which ensure a steady demand for its services. Additionally, ProFrac may engage in related activities such as the sale of frac sand or other materials necessary for the hydraulic fracturing process, contributing further to its revenue.

ProFrac Holding Financial Statement Overview

Summary

ProFrac Holding faces financial challenges with negative profit margins and high debt levels. Despite improvements in gross profit margins and free cash flow, the company struggles with profitability and leverage management.

Income Statement

Neutral

The company has faced challenges in profitable operations, reflected in negative net profit margins over the years. Recent revenue has decreased significantly, with a downturn in EBIT and EBITDA margins, indicating operational inefficiencies. However, gross profit margins have shown some improvement, suggesting potential for cost management.

Balance Sheet

Negative

The balance sheet shows high leverage with a rising debt-to-equity ratio, although stockholders' equity remains positive. The equity ratio is moderate, which reflects some financial stability. However, the consistently negative ROE over recent years highlights profitability challenges.

Cash Flow

Neutral

The company has maintained positive operating cash flow, which is a strong point. The free cash flow has been volatile, with recent improvement. However, the free cash flow to net income ratio is concerning due to negative net income, indicating potential cash management issues.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.19B	2.63B	2.43B	768.35M	547.70M
	Gross Profit
695.80M	486.40M	719.60M	57.54M	-30.00M
	EBIT
-60.40M	166.60M	412.40M	-8.16M	-94.70M
	EBITDA
72.70M	535.30M	741.90M	128.39M	55.97M
	Net Income Common Stockholders
-219.90M	-97.70M	342.70M	-43.54M	-118.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.80M	25.30M	35.10M	5.38M	2.95M
	Total Assets
2.99B	3.07B	2.93B	664.57M	577.28M
	Total Debt
1.26B	1.16B	1.04B	301.57M	275.71M
	Net Debt
1.24B	1.14B	1.01B	296.19M	272.76M
	Total Liabilities
1.91B	1.74B	1.58B	516.46M	400.46M
	Stockholders Equity
1.01B	1.27B	-1.18B	147.07M	176.81M
Cash Flow		Free Cash Flow
367.30M	286.50M	59.00M	-43.46M	-2.90M
	Operating Cash Flow
367.30M	553.50M	415.20M	43.94M	45.10M
	Investing Cash Flow
-372.30M	-715.80M	-1.03B	-78.38M	-44.60M
	Financing Cash Flow
-5.50M	149.70M	645.90M	36.87M	-15.30M

ProFrac Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.65

Price Trends

50DMA

6.79

Negative

100DMA

7.37

Negative

200DMA

7.13

Negative

Market Momentum

MACD

-0.74

Positive

RSI

37.95

Neutral

STOCH

52.61

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACDC, the sentiment is Negative. The current price of 4.65 is below the 20-day moving average (MA) of 5.97, below the 50-day MA of 6.79, and below the 200-day MA of 7.13, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 52.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACDC.

ProFrac Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRC	68 Neutral	$937.45M	36.73	10.01%	―	-9.17%	-71.36%
WTTR	63 Neutral	$1.01B	27.92	3.91%	3.14%	-8.41%	-58.49%
VTOL	59 Neutral	$818.88M	8.94	11.05%	―	42.03%	―
Sector *	55 Neutral	$7.05B	3.40	-6.09%	6.09%	-0.43%	-51.04%
PUMP	49 Neutral	$515.81M	―	-15.19%	―	-11.42%	-278.57%
ACDC	44 Neutral	$764.05M	―	-18.38%	―	-16.51%	-208.49%
NINE	42 Neutral	$31.91M	―	73.91%	―	-9.09%	-15.47%

* Energy Sector Average

Performance Comparison

ACDC

ProFrac Holding

4.60

-3.50

-43.21%

MRC

MRC Global

10.89

-0.78

-6.68%

VTOL

Bristow Group

28.63

2.52

9.65%

PUMP

Propetro Holding

5.15

-3.51

-40.53%

WTTR

Select Energy Services

8.49

-0.65

-7.11%

NINE

Nine Energy Service

0.75

-1.55

-67.39%

ProFrac Holding Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -28.90% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

ProFrac demonstrated strong revenue and efficiency gains in 2024, introduced a promising new venture with Livewire Power, and maintained robust free cash flow. However, the company faced significant fourth quarter challenges, including declines in revenue, EBITDA, and pricing pressures across segments. The sentiment is balanced with both positive achievements and notable challenges.

Highlights

Revenue and EBITDA Performance

For the full year 2024, ProFrac achieved revenue of $2.19 billion and adjusted EBITDA of $501 million, despite competitive pressures in the North American oilfield services market.

Introduction of Livewire Power

ProFrac launched a new business venture, Livewire Power, which began operations in the fourth quarter. This venture focuses on distributed power generation to meet the growing demand for power in remote locations.

Improvement in Stimulation Business

ProFrac reported a significant improvement in activity in the Stimulation business, achieving new record efficiencies in January, despite adding incremental fleets and facing challenging weather conditions.

Free Cash Flow Generation

ProFrac generated $54 million of free cash flow in Q4 and $185 million in total for 2024, focusing on maximizing liquidity and effectively managing debt service and working capital.

Lowlights

Fourth Quarter Revenue and EBITDA Decline

In Q4, ProFrac delivered $455 million in revenue and $71 million in adjusted EBITDA, down from $575 million and $135 million in Q3, respectively, due to pronounced budget exhaustion, holiday shutdowns, and adverse weather.

Pricing and Activity Challenges

The fourth quarter saw a sharper than anticipated drop in active fleet count and softened pricing due to lower activity. Pricing gradually declined through 2024 and has stabilized with potential cost increases from tariffs and labor inflation.

Proppant Production Segment Challenges

Proppant Production segment revenue declined from $53 million in Q3 to $47 million in Q4, primarily due to lower pricing and slightly lower sales volumes, with EBITDA margins decreasing from 33% to 31%.

Company Guidance

During the ProFrac Fourth Quarter and Year End 2024 earnings call, the company provided guidance indicating a strong focus on operational efficiency and strategic growth. ProFrac reported a revenue of $455 million and an adjusted EBITDA of $71 million for the fourth quarter, while for the full year 2024, they achieved $2.19 billion in revenue and $501 million in adjusted EBITDA. The company highlighted a significant improvement in activity in its Stimulation business, with new record efficiencies achieved in January despite challenging weather conditions. ProFrac's leadership emphasized their commitment to integrated solutions and innovation, with a notable focus on next-generation equipment and the launch of their new power generation venture, Livewire Power. The company also outlined a strategic focus on maintaining long-term customer relationships and sustainable pricing over short-term gains. ProFrac expects marginal growth in the frac market, with a continued emphasis on maintaining efficiency and asset management to drive performance. Additionally, the company anticipates improvements in Proppant Production, driven by strategic initiatives and potential favorable market conditions, particularly in the Haynesville region. ProFrac plans to invest between $250 million and $300 million in capital expenditures for 2025, focusing on maintaining and upgrading its fleet, with a disciplined approach to capital allocation and a commitment to maximizing free cash flow.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.