One-glance verdict
Within fair range
$1.67 our estimate vs market $4.84
Wall Street consensus: $4.79 (186.3% higher than our fair-value estimate)
189% above our estimate
Fundamentals snapshot
ProFrac Holding Corp.
ACDC · NMS · Energy · Oil & Gas Equipment & Services
Current price
$4.84
52-week range
$3.08 - $8.22
Market cap
$881.47M
Balance sheet
Distressed
-0.96x Concerning
Net debt $1.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -44.8% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 19.0% to -6.2% over 3 years.
- Risk Net debt grew 15.4% over 3 years.
What this company does
ProFrac Holding Corp.
ProFrac Holding Corp. sells the specialized equipment and services that oil and gas companies use for hydraulic fracturing, which is a process to get resources out of underground rock. The company makes most of its money by performing these fracking services, selling the special sand required, and manufacturing the heavy-duty pumps and parts needed for the work. This means ProFrac's success is closely tied to how much drilling for oil and gas is happening.
How the company got here
Founded in 2016, ProFrac was built to serve the most demanding needs of companies exploring for and producing oil and natural gas. It started by focusing on hydraulic fracturing, a key service for getting oil and gas out of shale rock formations. The company then grew by becoming 'vertically integrated,' which means it bought companies that supply the materials and equipment it needs. This strategy of owning more of its supply chain (the network of companies involved in producing and delivering a product) gives ProFrac more control over costs and availability of essential items like sand and equipment.
What it actually does
ProFrac is an energy services company that helps oil and gas producers extract resources from the ground, primarily in the United States. Think of them as a specialized construction crew for oil and gas wells. Their main job is 'hydraulic fracturing,' or 'fracking,' where they pump a mixture of water, sand, and chemicals into a well at high pressure to crack the underground rock and release the oil or gas. To support this, ProFrac also mines and sells its own sand and even manufactures the heavy-duty pumps and equipment needed for the job.
Stimulation Services
This is ProFrac's core business and its largest source of revenue (the total money a company brings in from sales). This segment provides the hydraulic fracturing services that oil and gas companies need to get their wells producing. ProFrac sends its mobile fleets, which are large sets of powerful pumps and other machinery, along with trained crews to the wellsite to perform the 'stimulation' process. The customers are oil and gas exploration and production (E&P) companies who pay ProFrac to complete their wells so they can start pumping oil or gas.
Proppant Production
This part of the business is all about sand. 'Proppant' is the industry term for sand and other similar materials that are used in fracking to prop open the tiny cracks in the rock so oil and gas can flow out. ProFrac owns and operates its own sand mines, which supply the massive amounts of sand needed for its fracturing jobs. While a lot of the sand is used by its own Stimulation Services crews, ProFrac also sells proppant to other oilfield service companies and directly to E&P companies. This vertical integration helps the company control a major cost and ensure a reliable supply.
Manufacturing
To ensure its crews have the best tools for the job, ProFrac builds its own heavy-duty equipment. This segment manufactures high-horsepower pumps, valves, and other components needed for hydraulic fracturing fleets. Having its own manufacturing helps ProFrac get new equipment faster, control quality, and reduce repair times, which keeps its fleets running. While much of the equipment is used internally, the company can also sell pumps, parts, and repair services to other companies in the industry.
Flotek Industries, Inc.
ProFrac operates this segment which provides specialty chemicals and other services to the energy industry. These are the chemicals mixed with water and sand to create the fracturing fluid that is pumped into wells. Flotek also provides services like mobile power generation for well sites. A significant portion of this segment's business involves providing these chemicals and services to ProFrac's own stimulation fleets, further supporting the company's integrated model.
What management is betting on now
The company's current strategy focuses on three main areas: higher utilization (keeping its equipment and crews busy and working as much as possible), providing an excellent customer experience, and having the lowest costs in the industry. Management is emphasizing vertical integration, meaning they want to control more of their own supply chain, like sand and equipment manufacturing, to manage costs and be more reliable for customers. They are also focused on technology, including using electric-powered and other lower-emission equipment to improve efficiency and reduce their environmental impact.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$28.20M
FY2024 Q4
$13.30M
FY2025 Q1
$-13.80M
FY2025 Q2
$53.90M
FY2025 Q3
$-33.40M
FY2025 Q4
$12.90M
FY2026 Q1
$-31.40M
FY2026 Q2
$-8.80M
Revenue
$498.10M
Net income
$-79.70M
Diluted EPS
-0.45
Operating cash flow
$22.90M
Free cash flow
$-8.80M
Fetching…
Sources
Revenue
$449.60M
Net income
$-83.50M
Diluted EPS
-0.47
Operating cash flow
$9.30M
Free cash flow
$-31.40M
Fetching…
Sources
Revenue
$436.50M
Net income
$-144.70M
Diluted EPS
-0.83
Operating cash flow
$49.50M
Free cash flow
$12.90M
Fetching…
Sources
Revenue
$403.10M
Net income
$-100.90M
Diluted EPS
-0.60
Operating cash flow
$900.00K
Free cash flow
$-33.40M
Fetching…
Sources
Revenue
$501.90M
Net income
$-105.90M
Diluted EPS
-0.67
Operating cash flow
$100.40M
Free cash flow
$53.90M
Fetching…
Sources
Revenue
$600.30M
Net income
$-17.50M
Diluted EPS
-0.12
Operating cash flow
$38.70M
Free cash flow
$-13.80M
Fetching…
Sources
Revenue
$454.70M
Net income
$-105.00M
Diluted EPS
-0.67
Operating cash flow
$76.50M
Free cash flow
$13.30M
Fetching…
Sources
Revenue
$575.30M
Net income
$-45.20M
Diluted EPS
-0.29
Operating cash flow
$98.20M
Free cash flow
$28.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.67 vs current price $4.84
Wall Street consensus is the average analyst price target: $4.79 (186.3% higher than our fair-value estimate).
Our most-likely fair value is $1.67 a share — about 65.4% away from today's price of $4.84, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $1.2B. Interest coverage -1.0x.
Net debt
$1.20B
Interest coverage
-0.96x
ProFrac Holding Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ACDC
BASELINE
ProFrac Holding Corp.
Total debt $1.22B Interest coverage -0.96x This is the baseline the peer rows are being compared against.
Total debt $857.89M Interest coverage 2.25x This peer still has a real interest-payment cushion, while ACDC does not.
Total debt $1.61B Interest coverage 2.24x This peer still has a real interest-payment cushion, while ACDC does not.
Total debt $1.29B Interest coverage -0.56x Neither company has much profit cushion over interest right now.
Total debt $51.88M Interest coverage 18.77x This peer still has a real interest-payment cushion, while ACDC does not.
Total debt $2.13B Interest coverage 1.22x This peer still has a real interest-payment cushion, while ACDC does not.
What you should know
The case for and against ACDC
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -44.8% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 19.0% to -6.2% over 3 years.
-
Net debt grew 15.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-6.91x
P/B
1.62x
P/S
0.49x
EV/EBITDA
10.77x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
21.5%
Operating margin
-6.2%
Net margin
-22.8%
ROE
-44.8%
ROA
-4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.70x
Current ratio
0.84x
Quick ratio
0.53x
Total debt
$1.22B
Total cash
$18.80M
Growth
How the business has been compounding
Revenue TTM
$1.79B
Revenue 5Y CAGR
26.1%
EPS TTM
-2.33
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$82.60M
Free CF TTM
$19.60M
FCF margin
1.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—