FORUM ENERGY TECHNOLOGIES, INC. (FET) Stock Analysis
FORUM ENERGY TECHNOLOGIES, INC. (FET) Stock Analysis
Overall Grade: F (Concerning)
View interactive company profile →
FORUM ENERGY TECHNOLOGIES, INC. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -3.1% | Below expectations |
| FCF Margin | 8.1% | Healthy cash flow |
| Debt/Equity | 0.5x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is FORUM ENERGY TECHNOLOGIES, INC.'s Profitability and ROIC?
FORUM ENERGY TECHNOLOGIES, INC.'s return on invested capital of -3.1% is below the typical cost of capital. Gross margin of 27.7% with operating margin at 3.8% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -3.1% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -3.1% | Red flag | Moderate equity returns |
| Gross Margin | 27.7% | Adequate | Competitive pricing environment |
| Operating Margin | 3.8% | Warning | Moderate operational efficiency |
How Strong is FORUM ENERGY TECHNOLOGIES, INC.'s Cash Flow Quality?
FORUM ENERGY TECHNOLOGIES, INC. generated $64.4M in free cash flow over the trailing twelve months, representing a 8.1% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 8.1% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $64.4M | Good | Positive cash generation |
| OCF/Net Income | -7.3x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is FORUM ENERGY TECHNOLOGIES, INC.'s Financial Health?
FORUM ENERGY TECHNOLOGIES, INC.'s debt-to-equity ratio of 0.5x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $-101.3M | Adequate | Net debt position |
Is FORUM ENERGY TECHNOLOGIES, INC. Stock Overvalued or Undervalued?
FORUM ENERGY TECHNOLOGIES, INC. trades at a P/E of -41.5x, representing a premium to the sector median of N/A. Free cash flow yield of 14.7% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -41.5x | Red flag | Reasonable valuation |
| EV/Sales | 0.7x | Excellent | Attractive revenue multiple |
| FCF Yield | 14.7% | Excellent | Attractive cash return |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -3.1% | Bottom 10% | -0.4x below |
| Free Cash Flow Margin | 8.1% | Top 50% | 1.5x above |
| Gross Margin | 27.7% | Bottom 50% | 0.8x below |
| Operating Margin | 3.8% | Bottom 50% | 0.5x below |
| Return on Equity (ROE) | -3.1% | Top 5% | -0.3x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -3.1% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 8.1% (Adequate - Top 50% of sector (median: 5.4%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 27.7% (Adequate - Bottom 50% of sector (median: 33.4%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 46.7% (Good)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 14.7% (Excellent)
Frequently Asked Questions
Q: What is FORUM ENERGY TECHNOLOGIES, INC.'s Return on Invested Capital (ROIC)?
FORUM ENERGY TECHNOLOGIES, INC. (FET) has a trailing twelve-month Return on Invested Capital (ROIC) of -3.1%. This compares below the sector median of 8.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is FORUM ENERGY TECHNOLOGIES, INC.'s Free Cash Flow Margin?
FORUM ENERGY TECHNOLOGIES, INC. (FET) has a free cash flow margin of 8.1%, generating $64.4 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is FORUM ENERGY TECHNOLOGIES, INC. stock overvalued or undervalued?
FORUM ENERGY TECHNOLOGIES, INC. (FET) trades at a P/E ratio of -41.5x, which is above the sector median of N/A. The EV/Sales multiple is 0.7x. Free cash flow yield is 14.7%, which represents an attractive cash return to investors.
Q: What is FORUM ENERGY TECHNOLOGIES, INC.'s revenue and earnings growth?
FORUM ENERGY TECHNOLOGIES, INC. (FET) declined revenue by 3.1% year-over-year. Earnings per share increased by 91.8% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is FORUM ENERGY TECHNOLOGIES, INC. buying back stock?
FORUM ENERGY TECHNOLOGIES, INC. (FET) repurchased $34.6 million of stock over the trailing twelve months. This represents a buyback yield of 7.9%.
Q: How does FORUM ENERGY TECHNOLOGIES, INC. compare to competitors in Industrials?
Compared to other companies in Industrials, FORUM ENERGY TECHNOLOGIES, INC. (FET) shows: ROIC of -3.1% is below the sector median of 8.0% (-0.4x median). FCF margin of 8.1% exceeds the sector median of 5.4% (Top 38% of sector). Gross margin at 27.7% is 5.7 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with FORUM ENERGY TECHNOLOGIES, INC.?
FORUM ENERGY TECHNOLOGIES, INC. (FET) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.