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Forum Energy Tech (FET)
NYSE:FET
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Forum Energy Tech
(NYSE:FET)57Neutral
Forum Energy Tech (FET) vs. S&P 500 (SPY)
Market Cap
$216.48M
Dividend YieldN/A
Average Volume (3M)67.42K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth10.50%
EPS Growth-493.15%
CountryUS
Employees1,600
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)-11.00
Shares Outstanding12,349,129
10 Day Avg. Volume81,051
30 Day Avg. Volume67,418
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)1.40
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Forum Energy Tech Business Overview & Revenue Model
Company DescriptionForum Energy Technologies (FET) is a global company that provides products and services to the oil and gas industry. FET operates in several sectors including drilling, subsea, completions, production, and infrastructure. The company's core products and services include well construction, intervention equipment, and subsea technologies that are essential for optimizing performance and enhancing the safety and efficiency of energy extraction and production operations.
How the Company Makes MoneyForum Energy Technologies makes money through the sale and rental of specialized equipment and technologies used in the exploration and production of oil and gas. Key revenue streams include the manufacturing and distribution of drilling and subsea equipment, as well as providing related services such as equipment maintenance and technical support. FET's earnings are significantly influenced by the level of activity in the oil and gas sector, partnerships with major exploration and production companies, and the company's ability to innovate and offer solutions that meet the evolving needs of the energy industry. Additionally, FET may engage in service contracts and collaborative projects that further bolster its revenue.
Forum Energy Tech Financial Statement Overview
Summary
Forum Energy Tech shows a mixed financial performance. Revenue growth and improved cash flow are positive, but profitability remains a challenge with negative net income. The balance sheet is stable but shows concerns with declining equity.Income Statement
Forum Energy Tech has shown a mixed performance over recent years. Total revenue increased by 10.5% from 2023 to 2024, indicating positive revenue growth. However, the company has been struggling with profitability as evidenced by negative net income and EBIT margins in 2024. The gross profit margin improved slightly to 31.2% in 2024, but the net profit margin remained negative at -16.6%, signaling ongoing profitability challenges.55
Neutral
Balance Sheet
The balance sheet shows moderate stability with a debt-to-equity ratio of 0.23 in 2024, reflecting a manageable level of debt relative to equity. The equity ratio has remained stable at around 39.2%, indicating a balanced capital structure. However, declining stockholders' equity from previous years is a concern for long-term sustainability.60
Neutral
Cash Flow
Cash flow analysis reveals a significant improvement in operating cash flow, which turned positive in 2024 at $92.2 million, compared to $8.2 million in 2023. This indicates enhanced operational efficiency and cash generation capabilities. Free cash flow also improved considerably, suggesting better cash management and potential for reinvestment or debt reduction.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 800.61M | 816.40M | 738.86M | 699.90M | 541.10M | 512.50M | Gross Profit |
| 242.27M | 255.00M | 204.15M | 188.50M | 123.30M | -11.00M | EBIT |
| 32.09M | -86.80M | 20.72M | 9.00M | -45.60M | -231.60M | EBITDA |
| 58.88M | -86.80M | 45.21M | 46.03M | -7.82M | -28.50M | Net Income Common Stockholders |
| -48.63M | -135.30M | -18.88M | 3.71M | -82.70M | -96.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 47.24M | 44.66M | 46.16M | 51.00M | 46.90M | 128.60M | Total Assets |
| 1.83B | 815.95M | 821.06M | 831.30M | 791.30M | 889.90M | Total Debt |
| 518.71M | 75.01M | 201.40M | 239.90M | 233.30M | 294.70M | Net Debt |
| 471.47M | 30.35M | 155.24M | 188.90M | 186.40M | 166.10M | Total Liabilities |
| 799.53M | 496.05M | 408.43M | 524.20M | 462.20M | 483.70M | Stockholders Equity |
| 1.03B | 319.90M | 412.63M | 307.10M | 329.10M | 406.20M |
| Cash Flow | Free Cash Flow | ||||
| 63.40M | 92.20M | 239.00K | -24.60M | -18.20M | 1.70M | Operating Cash Flow |
| 64.62M | 92.20M | 8.18M | -17.10M | -15.80M | 3.90M | Investing Cash Flow |
| -158.32M | -137.50M | -6.57M | 27.10M | 10.70M | 108.30M | Financing Cash Flow |
| 89.06M | 45.20M | -7.58M | -5.00M | -76.20M | -41.80M |
Forum Energy Tech Technical Analysis
Negative
17.50
Price Trends
17.62
Negative
16.31
Positive
16.54
Positive
Market Momentum
-0.04
Positive
42.93
Neutral
32.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FET, the sentiment is Negative. The current price of 17.5 is below the 20-day moving average (MA) of 18.20, below the 50-day MA of 17.62, and above the 200-day MA of 16.54, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FET.
Forum Energy Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.17B | 13.88 | 27.06% | 0.75% | 16.23% | 1403.29% | |
76 Outperform | $5.43B | 8.89 | 10.12% | 1.93% | 3.42% | -35.98% | |
65 Neutral | $1.98B | 13.34 | 21.97% | ― | 9.75% | 50.93% | |
65 Neutral | $3.73B | 16.90 | 19.15% | 1.07% | 3.00% | 6.72% | |
58 Neutral | $168.01M | ― | -48.79% | ― | -10.61% | -858.23% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
57 Neutral | $216.48M | ― | -36.95% | ― | 10.50% | -493.15% |
* Energy Sector Average
Performance Comparison
FET
Forum Energy Tech
17.26
-1.69
-8.92%
BOOM
DMC Global
8.25
-8.88
-51.84%
FTI
TechnipFMC
26.67
4.82
22.06%
NOV
NOV
14.96
-2.42
-13.92%
OII
Oceaneering International
19.95
-0.62
-3.01%
WHD
Cactus
47.37
1.25
2.71%
Forum Energy Tech Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -7.85% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Forum Energy Technologies demonstrated strong financial performance with significant revenue, EBITDA, and free cash flow growth, along with successful debt reduction and new product innovations. However, the company faces challenges in the form of expected market activity declines, a significant impairment charge, and potential impacts from tariffs and geopolitical uncertainties.Highlights
Revenue and EBITDA Growth
Forum Energy Technologies reported a revenue increase of 10% and an EBITDA increase of 49% for the year 2024, resulting in a 42% incremental margin and over 300 basis point margin improvement.
Record Free Cash Flow
The company generated $105 million in free cash flow, the highest annual amount since 2015 and $35 million higher than the top end of their latest guidance.
Debt Reduction and Strong Liquidity
Net debt is down 30% from the previous year, significantly improving net leverage from eleven to just under one and a half times. Total liquidity stands at $106 million.
Share Repurchase Program
Forum Energy Technologies announced a $75 million share repurchase program, reflecting confidence in generating consistent free cash flow in 2025 and beyond.
International Revenue Growth
International revenue grew by almost 42%, leveraging strategically located manufacturing facilities.
New Product Innovations
The company introduced several new products, including the FR 120 SC Iron Roughneck, FastConnect system, Powertron heat transfer unit, and Unity ROV remote control technology.
Safety Achievements
Significant improvement in safety performance and culture, exceeding expectations and achieving world-class levels.
Lowlights
Market Activity Challenges
Expectations for 2025 indicate a 2% to 5% decrease in global drilling and completion activity, with North America anticipated to experience a softening in rig count and frac fleet count.
Impairment Charge
A $119 million non-cash impairment charge was recorded to write down the intangible assets of the coiled tubing product line, reducing annual amortization expense by $15 million.
Decreased Segment EBITDA
The Drilling and Completion segment saw a 34% decrease in EBITDA due to lower sales volumes and unfavorable product mix, with orders down 20% relative to the third quarter.
Tariff and Geopolitical Uncertainties
Potential impacts from tariffs and geopolitical uncertainties were highlighted, which could cause short-term variability in the business.
Company Guidance
During Forum Energy Technologies' earnings call, the company provided detailed guidance for 2025, indicating a cautious outlook due to expected market activity declines driven by geopolitical and macroeconomic uncertainties. Despite anticipating a 2% to 5% decrease in global drilling and completion activity, Forum aims to mitigate these impacts through its "beat the market" strategy, which focuses on gaining market share, particularly in high-margin product lines. The company forecasts 2025 adjusted EBITDA to range between $85 million and $105 million. Free cash flow is projected to be between $40 million and $60 million, with plans to allocate 50% towards debt reduction and 50% towards strategic investments, including share repurchases. Forum also highlighted significant achievements in 2024, such as a 10% increase in revenue, a 49% rise in EBITDA, and a 42% incremental margin improvement. The company successfully executed a $100 million bond offering for debt refinancing and announced a $75 million share repurchase program, reflecting confidence in consistent cash flow generation. Additionally, Forum has been actively developing new technologies like the FR 120 SC Iron Roughneck and the Powertron heat transfer unit, positioning itself as an industry innovator.Forum Energy Tech Corporate Events
Executive/Board ChangesShareholder Meetings
Forum Energy Tech Announces Board Member Retirement
Neutral
Feb 19, 2025
On February 14, 2025, C. Christopher Gaut announced his decision to retire from the Board of Directors of Forum Energy Technologies, Inc. at the end of his current term and not seek re-election at the company’s 2025 Annual Meeting of stockholders. This decision is not due to any disagreements with the company’s operations, policies, or practices.
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.