Latest news with #FlotekIndustries
Yahoo
23-05-2025
- Business
- Yahoo
Flotek Industries' (NYSE:FTK) Returns On Capital Are Heading Higher
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at Flotek Industries (NYSE:FTK) and its trend of ROCE, we really liked what we saw. We've discovered 1 warning sign about Flotek Industries. View them for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Flotek Industries: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$16m ÷ (US$170m - US$44m) (Based on the trailing twelve months to March 2025). So, Flotek Industries has an ROCE of 12%. In absolute terms, that's a satisfactory return, but compared to the Chemicals industry average of 8.6% it's much better. Check out our latest analysis for Flotek Industries In the above chart we have measured Flotek Industries' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Flotek Industries . We're delighted to see that Flotek Industries is reaping rewards from its investments and has now broken into profitability. The company was generating losses five years ago, but has managed to turn it around and as we saw earlier is now earning 12%, which is always encouraging. Interestingly, the capital employed by the business has remained relatively flat, so these higher returns are either from prior investments paying off or increased efficiencies. That being said, while an increase in efficiency is no doubt appealing, it'd be helpful to know if the company does have any investment plans going forward. After all, a company can only become a long term multi-bagger if it continually reinvests in itself at high rates of return. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Essentially the business now has suppliers or short-term creditors funding about 26% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business. As discussed above, Flotek Industries appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And a remarkable 156% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Flotek Industries does have some risks though, and we've spotted 1 warning sign for Flotek Industries that you might be interested in. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Flotek Industries' (NYSE:FTK) Returns On Capital Are Heading Higher
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at Flotek Industries (NYSE:FTK) and its trend of ROCE, we really liked what we saw. We've discovered 1 warning sign about Flotek Industries. View them for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Flotek Industries: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = US$16m ÷ (US$170m - US$44m) (Based on the trailing twelve months to March 2025). So, Flotek Industries has an ROCE of 12%. In absolute terms, that's a satisfactory return, but compared to the Chemicals industry average of 8.6% it's much better. Check out our latest analysis for Flotek Industries In the above chart we have measured Flotek Industries' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Flotek Industries . We're delighted to see that Flotek Industries is reaping rewards from its investments and has now broken into profitability. The company was generating losses five years ago, but has managed to turn it around and as we saw earlier is now earning 12%, which is always encouraging. Interestingly, the capital employed by the business has remained relatively flat, so these higher returns are either from prior investments paying off or increased efficiencies. That being said, while an increase in efficiency is no doubt appealing, it'd be helpful to know if the company does have any investment plans going forward. After all, a company can only become a long term multi-bagger if it continually reinvests in itself at high rates of return. For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Essentially the business now has suppliers or short-term creditors funding about 26% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business. As discussed above, Flotek Industries appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And a remarkable 156% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Flotek Industries does have some risks though, and we've spotted 1 warning sign for Flotek Industries that you might be interested in. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Here is Why Flotek Industries, Inc. (FTK) Skyrocketed This Week
Flotek Industries, Inc. (NYSE:FTK) was among the energy stocks that gained the most this week. In this article, we are going to discuss why the stock surged 21.9% between May 7th and May 14th. Aerial view of an oil refinery, showcasing the company's hydrocarbon-producing market segment. Flotek Industries, Inc. (NYSE:FTK) is a leading chemistry and data technology company focused on servicing the energy industry. Flotek Industries, Inc. (NYSE:FTK) continues to gain after posting significant growth in revenue and profit in its Q1 2025 results reported last week, marking its strongest quarterly performance in the last five years. The company's net income surged by a massive 244% YoY to $5.38 million, while its revenue also increased by 37% YoY to $55.36 million – both beating market expectations. FTK also highlighted its acquisition of 30 real-time gas monitoring and dual fuel optimization assets last month, along with a $160 million multi-year contract, as strategic moves to further strengthen its market position. Moreover, there have also been reports of insider activity at Flotek, with director Matthew Wilks investing over $1.65 million to purchase the company's stock. After the recent rally, the stock of Flotek Industries, Inc. (NYSE:FTK) has now surged by around 315% over the last 52 weeks. While we acknowledge the potential of FTK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FTK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
15-05-2025
- Business
- Yahoo
Here is Why Flotek Industries, Inc. (FTK) Skyrocketed This Week
Flotek Industries, Inc. (NYSE:FTK) was among the energy stocks that gained the most this week. In this article, we are going to discuss why the stock surged 21.9% between May 7th and May 14th. Aerial view of an oil refinery, showcasing the company's hydrocarbon-producing market segment. Flotek Industries, Inc. (NYSE:FTK) is a leading chemistry and data technology company focused on servicing the energy industry. Flotek Industries, Inc. (NYSE:FTK) continues to gain after posting significant growth in revenue and profit in its Q1 2025 results reported last week, marking its strongest quarterly performance in the last five years. The company's net income surged by a massive 244% YoY to $5.38 million, while its revenue also increased by 37% YoY to $55.36 million – both beating market expectations. FTK also highlighted its acquisition of 30 real-time gas monitoring and dual fuel optimization assets last month, along with a $160 million multi-year contract, as strategic moves to further strengthen its market position. Moreover, there have also been reports of insider activity at Flotek, with director Matthew Wilks investing over $1.65 million to purchase the company's stock. After the recent rally, the stock of Flotek Industries, Inc. (NYSE:FTK) has now surged by around 315% over the last 52 weeks. While we acknowledge the potential of FTK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FTK and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Flotek Industries First Quarter 2025 Earnings: EPS Beats Expectations, Revenues Lag
Revenue: US$55.4m (up 37% from 1Q 2024). Net income: US$5.38m (up 244% from 1Q 2024). Profit margin: 9.7% (up from 3.9% in 1Q 2024). The increase in margin was driven by higher revenue. EPS: US$0.18 (up from US$0.053 in 1Q 2024). We've discovered 1 warning sign about Flotek Industries. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 9.3%. Earnings per share (EPS) exceeded analyst estimates by 183%. Looking ahead, revenue is forecast to grow 8.9% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Chemicals industry in the US. Performance of the American Chemicals industry. The company's shares are up 46% from a week ago. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Flotek Industries, and understanding it should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
