Fuel Tech (FTEK) AI Stock Analysis

• Market Cap: $29.66M
• Dividend Yield: N/A
• Average Volume (3M): 35.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -7.19%
• EPS Growth: -24.85%
• Country: US
• Employees: 72
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.06
• Shares Outstanding: 30,708,273
• 10 Day Avg. Volume: 18,642
• 30 Day Avg. Volume: 35,167
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): -4.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 312.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Fuel Tech's overall stock score reflects the balance of significant challenges and opportunities. The financial performance indicates pressing issues with declining revenue and ongoing losses, despite a strong balance sheet. Technical analysis shows neutral momentum, while valuation metrics underscore profitability concerns. The earnings call provides a more optimistic outlook for 2025, with growth initiatives and segment improvements potentially aiding recovery.

Positive Factors

New Customer Acquisition

Management is confident about winning a new FUEL CHEM customer that could start contributing later in the year.

Revenue Growth

The company expects revenues to exceed $30M during 2025, showing traction in both its APC and FUEL CHEM businesses.

Valuation and Growth Potential

The stock is considered attractively valued, trading close to or below cash levels, with significant growth potential in annual revenues for 2025.

Negative Factors

Project Delays

Revenues for 2024 were impacted by delayed projects and timing of APC awards, resulting in financial performance at the lower end of guidance.

Revenue Miss

Revenues for 2024 came in toward the lower end of the company’s guided range due to delayed projects and timing of APC awards.

Fuel Tech Business Overview & Revenue Model

Company Description

Fuel Tech, Inc. (FTEK) is a leading technology company specializing in advanced engineering solutions for the optimization of combustion processes and emissions control in utility and industrial applications. The company operates primarily within the energy and environmental sectors, offering a wide range of products and services designed to enhance the efficiency, performance, and environmental sustainability of combustion systems. Key offerings include proprietary technologies for air pollution control, fuel treatment, and advanced engineering services.

How the Company Makes Money

Fuel Tech generates revenue primarily through the sale and licensing of its proprietary technologies and solutions that help clients comply with environmental regulations and optimize their combustion processes. The company's key revenue streams include the sale of air pollution control systems, such as its Selective Non-Catalytic Reduction (SNCR) systems, and services related to combustion optimization. Additionally, Fuel Tech earns income from engineering and consulting services that support clients in improving operational efficiency and reducing emissions. Significant partnerships with industrial and utility companies, as well as ongoing regulatory requirements for emissions control, contribute to the company's earnings by ensuring a steady demand for its innovative solutions.

Fuel Tech Financial Statement Overview

Summary

Fuel Tech is facing significant financial challenges, with declining revenues and persistent profitability issues. While the balance sheet remains strong with low leverage, the negative cash flows and ongoing losses indicate operational difficulties that need addressing. Stability in gross margins offers some hope, but a strategic turnaround is essential for future growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.13M	27.08M	26.94M	24.26M	22.55M
	Gross Profit
10.62M	11.66M	11.64M	11.90M	10.64M
	EBIT
-4.70M	-2.66M	-1.53M	81.00K	-4.14M
	EBITDA
-1.41M	-1.11M	-931.00K	-748.00K	-3.37M
	Net Income Common Stockholders
-1.94M	-1.54M	-1.44M	54.00K	-4.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.69M	29.71M	26.31M	35.89M	10.64M
	Total Assets
48.80M	50.39M	50.12M	49.97M	30.09M
	Total Debt
625.00K	614.00K	191.00K	235.00K	1.94M
	Net Debt
-7.88M	-16.96M	-23.14M	-35.66M	-8.70M
	Total Liabilities
6.84M	6.67M	5.25M	3.77M	7.77M
	Stockholders Equity
41.95M	43.71M	44.88M	46.20M	22.32M
Cash Flow		Free Cash Flow
-3.43M	278.00K	-4.34M	677.00K	-2.95M
	Operating Cash Flow
-3.43M	696.00K	-4.14M	761.00K	-2.71M
	Investing Cash Flow
-5.44M	-6.44M	-9.48M	-84.00K	-247.00K
	Financing Cash Flow
-95.00K	42.00K	-17.00K	23.98M	1.28M

Fuel Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 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 0.97 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.99, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.16 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	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
CLWT	59 Neutral	$9.11M	4.28	14.87%	―	6.59%	615.58%
FTEK	50 Neutral	$29.66M	―	-4.54%	―	-7.19%	-24.85%
CLIR	45 Neutral	$29.88M	―	-55.91%	―	49.65%	16.68%
LIQT	41 Neutral	$15.47M	―	-60.98%	―	-18.87%	-9.47%
TOMZ	38 Underperform	$16.39M	―	-71.87%	―	5.23%	-30.55%
SCWO	32 Underperform	$40.48M	―		―	―	―

Fuel Tech Corporate Events

Fuel Tech Enhances Transparency with Updated Presentation

Fuel Tech, Inc., a Delaware corporation, has announced that it will update its corporate presentation on its website, providing fresh insights for investors keen on the company’s latest strategies and performance. This move is aimed at enhancing transparency and keeping shareholders informed about the company’s progress without the information being subject to filing liabilities under the Securities and Exchange Act of 1934.