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Fuel Tech (FTEK)
NASDAQ:FTEK
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Fuel Tech
(NASDAQ:FTEK)
55Neutral
Positive Factors
Government Policies
The new federal administration's focus on 'clean air' is likely to benefit Fuel Tech due to its products' focus on eliminating harmful gases.
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.
Negative Factors
Project Delays
Delayed projects and timing of APC awards impacted revenue performance, contributing to results at the lower end of the company’s guided range.
Revenue Performance
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 (FTEK) vs. S&P 500 (SPY)
Market Cap
$32.24M
Dividend YieldN/A
Average Volume (3M)101.19K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth-7.19%
EPS Growth-24.85%
CountryUS
Employees72
SectorIndustrials
Sector Strength66
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.06
Shares Outstanding30,708,273
10 Day Avg. Volume44,365
30 Day Avg. Volume101,186
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside280.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Fuel Tech Business Overview & Revenue Model
Company DescriptionFuel 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 MoneyFuel 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.45
Neutral
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.60
Neutral
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.40
Negative
| 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
Positive
1.05
Price Trends
0.99
Positive
1.01
Positive
1.02
Positive
Market Momentum
<0.01
Negative
62.48
Neutral
83.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEK, the sentiment is Positive. The current price of 1.05 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.99, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTEK.
Fuel Tech Risk Analysis
Fuel Tech disclosed 20 risk factors in its most recent earnings report. Fuel Tech reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fuel Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $571.35M | 11.33 | 10.61% | 1.00% | -2.88% | -41.29% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
61 Neutral | $829.26M | 66.61 | 5.39% | ― | 2.40% | -0.38% | |
58 Neutral | $38.68M | ― | -49.02% | ― | 263.02% | 21.39% | |
55 Neutral | $32.24M | ― | -4.54% | ― | -7.19% | -24.85% | |
52 Neutral | $345.91M | ― | -20.38% | ― | -7.47% | -74.28% | |
46 Neutral | $39.97M | ― | -16.91% | ― | -5.13% | 65.56% |
* Industrials Sector Average
Performance Comparison
FTEK
Fuel Tech
1.05
-0.17
-13.93%
CECO
Ceco Environmental
23.70
0.70
3.04%
DWSN
Dawson Geophysical Company
1.29
-0.17
-11.64%
KOP
Koppers Holdings
27.89
-26.47
-48.69%
MTRX
Matrix Service Company
12.53
-0.44
-3.39%
CLIR
ClearSign Combustion
0.77
-0.19
-19.79%
Fuel Tech Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 8.25% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Fuel Tech's financial position remains strong, 2024 revenue fell short of expectations, and there was a decline in the APC segment. However, there is optimism for 2025 with expected revenue growth and strong performance in the FUEL CHEM segment, alongside promising data center opportunities.Highlights
Strong Financial Position
Fuel Tech ended 2024 with cash, cash equivalents, and investments totaling approximately $30 million and no long-term debt.
Positive Outlook for 2025 Revenue
The company expects that total revenues for 2025 will exceed $30 million, with both business segments (FUEL CHEM and APC) exceeding their performance in 2024.
FUEL CHEM Segment Performance
The FUEL CHEM business segment starts 2025 with the best performance seen in years, driven by the return to full operation of base accounts and new commercial accounts added in the fourth quarter of 2024.
Data Center Market Opportunities
Fuel Tech is pursuing larger contract value inquiries related to the expansion of power generation for data centers, driven by significant projected growth in this market.
Lowlights
2024 Revenue Shortfall
Revenues for 2024 were $25.1 million, which was at the lower end of the guidance range of $25 million to $26 million.
APC Segment Decline
The APC segment revenue declined 17% in 2024 due to delayed project execution and timing of new project awards.
Decreased Gross Margins
Consolidated gross margin for the fourth quarter declined to 42% from 51% in the previous year, with decreases in both APC and FUEL CHEM gross margins.
Increased Operating Loss
Operating loss for 2024 increased to $4.7 million from $2.7 million in 2023, reflecting lower segment revenues and higher operating expenses.
Company Guidance
During the Fuel Tech 2024 Fourth Quarter Financial Results Conference Call, the company provided guidance for the fiscal year 2025, projecting revenues to exceed $30 million. This optimistic outlook is based on various factors, including anticipated $4 million to $5 million in new APC contract awards expected in early Q2 and strong performance in their FUEL CHEM segment, which is starting 2025 with the best performance in years. The company ended 2024 with cash, cash equivalents, and investments of approximately $30 million and no long-term debt. They also reported a consolidated revenue of $25.1 million for 2024, with a gross margin of 42%. Operating loss was $4.7 million, and net loss was $1.9 million or $0.06 per share. Fuel Tech's backlog at the end of 2024 stood at $6.2 million, and they expect $4.5 million of this backlog to be recognized in 2025. The company is also pursuing opportunities in the growing data center market and anticipates commercial revenue from its DGI technology in 2025.Fuel Tech Corporate Events
Business Operations and Strategy
Fuel Tech Enhances Transparency with Updated Presentation
Neutral
Dec 4, 2024
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.
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.