Flotek Industries Inc. Common Stock (FTK)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

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

I look for a business I can understand, bought at a sensible price, with durable advantages and honest cash generation. Flotek is a small energy-services firm, with 158 employees, selling chemistry and analytics to oil and gas customers. Recent results show a genuine turnaround: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $99.4 million, net income $10.0 million, and diluted EPS $0.26. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $58.4 million and net income $1.8 million. In full-year fiscal 2025, the year ended 2025-12-31, revenue was $237.3 million, net income $30.5 million, diluted EPS $0.84; in full-year fiscal 2024, the year ended 2024-12-31, revenue was $187.0 million, net income $10.5 million, diluted EPS $0.34. That recovery is real, and FairStock's Lynch category labels it a TURNAROUND - returned to profit after a loss within the last three years. But I must ask what protects those profits. A chemical and data-analytics supplier in oilfield services likely faces cyclical demand and competitive pressure. Financial health is mixed: debt-to-equity 0.44 and Altman Z-Score 3.70, but trailing free cash flow is -$4.1 million, so reported earnings are not yet cash. Valuation is demanding. At the 2026-10-13 close of $27.07, the FairStock P/E is 26.80, P/B is 7.58, EV/EBITDA is 25.71, and PEG is 0.06 - the last flatters a huge profit rebound. The Graham Number is $9.01, implying the price is far above a conservative asset-and-earnings value. ROE of 37.80% is impressive but can be inflated by a small equity base. I would want evidence of durable free cash flow and a wider margin of safety before calling this a bargain.

In plain English: Flotek sells specialty chemicals and data tools to oil and gas companies. The business has returned to profit and sales are growing quickly, but it has not recently turned those accounting profits into free cash, and it carries some debt. At the 2026-10-13 close of $27.07 a share, the price looks expensive compared with the company's accounting value and a conservative estimate of what its earnings and assets are worth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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