One-glance verdict
Undervalued
$182.84 our estimate vs market $84.94
Wall Street consensus: $91.00 (-50.2% lower than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
Forum Energy Technologies, Inc.
FET · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$84.94
52-week range
$26.58 - $91.99
Market cap
$974.49M
Balance sheet
Stretched
1.04x Concerning
Net debt $92.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 10.4% last year.
- Reward Returns 9.8% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
Forum Energy Technologies, Inc.
Forum Energy Technologies, Inc. makes and sells equipment for the oil, gas, and other energy industries, like pumps and specialized tools. Their money mostly comes from selling these products, which matters because it shows how much demand there is for their specialized machinery in the energy sector. They also offer services related to this equipment, which helps ensure they have a steady stream of income (recurring revenue, meaning money that comes in regularly).
How the company got here
Forum Energy Technologies (FET) was formed in 2010 through the merger of five different oilfield product companies, with its roots tracing back to 2005. This consolidation aimed to create a larger, more robust company capable of capitalizing on growth opportunities in the energy sector. The company's history is marked by strategic acquisitions and organic growth, positioning it as a global provider of equipment and services for the oil, natural gas, and renewable energy industries. FET is headquartered in Houston, Texas, and operates manufacturing and distribution facilities worldwide.
What it actually does
Forum Energy Technologies designs, manufactures, and supplies a wide range of equipment and consumable products used throughout the entire lifecycle of oil and natural gas extraction. This includes everything from the initial drilling and well construction phases to production and transportation. They serve not only oil and gas companies but also industrial and renewable energy customers, offering solutions that aim to improve safety, efficiency, and performance in energy development. The company's offerings are sold through distributors to various industry players.
Drilling and Completions
This segment is a major part of Forum Energy Technologies, focusing on products and solutions for drilling, subsea operations, coiled tubing, and well stimulation. Think of it as the equipment that helps drillers explore for and extract oil and gas, as well as specialized tools for underwater operations (subsea) and for enhancing the flow from wells (well stimulation). This segment also caters to renewable energy, defense, and communications industries, showing a diversification beyond traditional oil and gas. It provides everything from large capital equipment like drilling machinery to smaller consumable parts and technical services.
Artificial Lift and Downhole
This business line provides essential equipment for getting oil and gas out of the ground and keeping production running smoothly. 'Artificial lift' refers to systems that help bring oil to the surface when natural pressure isn't enough, like using pumps. 'Downhole' means equipment that operates deep inside the well. This segment offers solutions for well construction, production, and infrastructure, including specialized tools to protect equipment, systems for heavy oil extraction, and various industrial valves. It's a critical area for maintaining and optimizing the flow of energy resources.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$36.11M
FY2025 Q1
$7.22M
FY2025 Q2
$14.82M
FY2025 Q3
$21.47M
FY2025 Q4
$20.88M
FY2026 Q1
$1.37M
FY2026 Q2
$9.50M
FY2026 Q3
$30.31M
Revenue
$236.81M
Net income
$11.23M
Diluted EPS
0.93
Operating cash flow
$32.03M
Free cash flow
$30.31M
Fetching…
Sources
Revenue
$226.22M
Net income
$12.41M
Diluted EPS
1.05
Operating cash flow
$12.43M
Free cash flow
$9.50M
Fetching…
Sources
Revenue
$208.70M
Net income
$4.49M
Diluted EPS
0.39
Operating cash flow
$1.63M
Free cash flow
$1.37M
Fetching…
Sources
Revenue
$202.20M
Net income
$2.07M
Diluted EPS
0.25
Operating cash flow
$22.44M
Free cash flow
$20.88M
Fetching…
Sources
Revenue
$196.23M
Net income
$-20.55M
Diluted EPS
-1.76
Operating cash flow
$22.87M
Free cash flow
$21.47M
Fetching…
Sources
Revenue
$199.76M
Net income
$7.70M
Diluted EPS
0.61
Operating cash flow
$15.77M
Free cash flow
$14.82M
Fetching…
Sources
Revenue
$193.28M
Net income
$1.12M
Diluted EPS
0.09
Operating cash flow
$9.33M
Free cash flow
$7.22M
Fetching…
Sources
Revenue
$201.02M
Net income
$-103.50M
Diluted EPS
-8.41
Operating cash flow
$38.52M
Free cash flow
$36.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $182.84 vs current price $84.94
Wall Street consensus is the average analyst price target: $91.00 (-50.2% lower than our fair-value estimate).
Our most-likely fair value is $182.84 a share — about 115.3% above today's price of $84.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $92.5M. Interest coverage 1.0x.
Net debt
$92.51M
Interest coverage
1.04x
Forum Energy Technologies, Inc.'s profit covers its interest bill about 1.0 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
FET
BASELINE
Forum Energy Technologies, Inc.
Total debt $127.68M Interest coverage 1.04x This is the baseline the peer rows are being compared against.
Total debt $37.47M Interest coverage 0.30x -71% vs FET Carries about 3.4x less debt cushion than FET.
Total debt $891.29M Interest coverage 2.25x +115% vs FET Carries about 2.2x more debt cushion than FET.
Total debt $49.10M Interest coverage 12.00x +1,049% vs FET Carries about 11.5x more debt cushion than FET.
Total debt $54.10M Interest coverage 94.42x +8,938% vs FET Carries about 90.4x more debt cushion than FET.
What you should know
The case for and against FET
3 Rewards
0 Risks
Rewards
-
Revenue grew 10.4% last year.
-
Returns 9.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
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)
33.44x
Forward P/E
17.12x
P/B
3.06x
P/S
1.12x
EV/EBITDA
11.12x
PEG ratio
1.93x
Profitability
How much profit each dollar creates
Gross margin
30.6%
Operating margin
8.9%
Net margin
3.5%
ROE
9.8%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.40x
Current ratio
2.04x
Quick ratio
0.88x
Total debt
$127.68M
Total cash
$35.17M
Growth
How the business has been compounding
Revenue TTM
$873.93M
Revenue 5Y CAGR
10.0%
EPS TTM
2.54
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$68.52M
Free CF TTM
$64.39M
FCF margin
7.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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