Flotek Industries Inc. Common Stock (FTK)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $17 million in annual free cash flow (2.8% yield on market cap)
• High return on equity of 26.9% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.46, providing financial flexibility
• Revenue growth of 33.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($8) with negative 101% margin of safety—limited downside protection

AI Analysis

Flotek Industries Inc. Common Stock is a micro-cap energy company valued at $613 million. The business generates $237 million in annual revenue with a 1.3% net margin and $17 million in free cash flow. From a quality standpoint, Flotek shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.3 in the grey zone. On valuation, the stock is reasonably priced at 20.1x earnings, with trades far above its Graham Number ($8) with no margin of safety. Growth dynamics show revenue growing at 33.0% and profit growth of -31.7%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Flotek's 33% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $17 million in annual free cash flow (2.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer