Forgent Power Solutions Inc. Class A Common Stock (FPS)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Forgent sells the unglamorous plumbing of electricity—transformers, switchgear, panelboards—into data centers, grid and industrial sites. That can be a real business with a possible moat when products are specified into projects and maintenance follows the installed base, but the record here is short: only two fiscal years filed, so FairStock assigns no Lynch category. The filed numbers show rapid growth: fiscal 2026, the year ended 2026-06-30, revenue was $1.4B versus $753.2M in fiscal 2025, the year ended 2025-06-30, and net income was $81.8M versus $15.2M. That is impressive, but Graham would ask what price is being paid. At the 2026-10-26 close of $25.12, FairStock shows P/E 83.73, P/B 11.58, EV/EBITDA 25.35 and Graham Number $3.83, leaving a -532.38% margin of safety. The balance sheet is not fortress-like: debt-to-equity 1.05, ROCE 6.05%, and trailing free cash flow -$6.8M with FCF yield -0.1%. Piotroski 7/9 and Altman 2.73 are reassuring, not conclusive. The 52-week range $23.16-$66.00 shows the market has already repriced the story sharply. I like the demand backdrop and improving profits, but the company is being valued as if high growth and margins persist before it has produced consistent free cash. A Buffett-style buyer would want more years of filed results, better cash conversion, and a price closer to the Graham Number before calling this a bargain.

In plain English: Forgent makes electrical equipment that helps data centers, power grids and factories move electricity. Sales and profit jumped in the latest filed year, but the company is not yet generating free cash and it carries meaningful debt. At $25.12, the stock looks expensive compared with the profits and accounting value shown.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer