NasdaqGS:FTEK

Stock Analysis Report

Executive Summary

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Fuel Tech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FTEK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.7%

FTEK

-8.8%

US Commercial Services

-10.6%

US Market


1 Year Return

-33.2%

FTEK

8.3%

US Commercial Services

5.2%

US Market

Return vs Industry: FTEK underperformed the US Commercial Services industry which returned 13.7% over the past year.

Return vs Market: FTEK underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

FTEKIndustryMarket
7 Day-9.7%-8.8%-10.6%
30 Day-12.5%-6.7%-8.5%
90 Day-16.6%-2.8%-4.6%
1 Year-33.2%-33.2%12.0%8.3%7.4%5.2%
3 Year-23.2%-23.2%48.3%38.4%31.7%23.2%
5 Year-74.3%-74.3%86.0%66.3%56.4%39.3%

Price Volatility Vs. Market

How volatile is Fuel Tech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fuel Tech undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTEK ($0.83) is trading below our estimate of fair value ($41.67)

Significantly Below Fair Value: FTEK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FTEK is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: FTEK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FTEK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FTEK is good value based on its PB Ratio (0.7x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Fuel Tech forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTEK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FTEK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FTEK's is expected to become profitable in the next 3 years.

Revenue vs Market: FTEK's revenue (13.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FTEK's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FTEK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fuel Tech performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTEK is currently unprofitable.

Growing Profit Margin: FTEK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FTEK is unprofitable, but has reduced losses over the past 5 years at a rate of 32.8% per year.

Accelerating Growth: Unable to compare FTEK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FTEK is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-4.6%).


Return on Equity

High ROE: FTEK has a negative Return on Equity (-8.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fuel Tech's financial position?


Financial Position Analysis

Short Term Liabilities: FTEK's short term assets ($26.2M) exceed its short term liabilities ($6.1M).

Long Term Liabilities: FTEK's short term assets ($26.2M) exceed its long term liabilities ($1.2M).


Debt to Equity History and Analysis

Debt Level: FTEK is debt free.

Reducing Debt: FTEK has no debt compared to 5 years ago when its debt to equity ratio was 1.8%.


Balance Sheet

Inventory Level: FTEK has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FTEK's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FTEK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FTEK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.5% per year.


Next Steps

Dividend

What is Fuel Tech's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FTEK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FTEK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FTEK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FTEK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FTEK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average management tenure


CEO

Vince Arnone (55yo)

4.8yrs

Tenure

US$514,005

Compensation

Mr. Vincent J. Arnone, also known as Vince, has been the Chief Executive Officer and President of Fuel-Tech, Inc. since April 1, 2015 and served as its Executive Vice President of Worldwide Operations sinc ...


CEO Compensation Analysis

Compensation vs Market: Vince's total compensation ($USD514.01K) is about average for companies of similar size in the US market ($USD529.87K).

Compensation vs Earnings: Vince's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Arnone
Chairman4.8yrsUS$514.01k2.11% $422.8k
James Pach
Principal Financial Officer2yrsUS$237.97k0.16% $32.4k
William Cummings
Senior Vice President of Sales11.1yrsUS$478.49k1.05% $209.8k
Ellen Albrecht
VP, Accounting Manager & Controller0yrsno datano data
William Sun
Vice President of International Business & Technologies9.4yrsUS$140.94kno data
Albert Grigonis
Senior VP12.1yrsUS$363.11kno data
Vincent Albanese
Senior Vice President of Regulatory Affairs19.8yrsUS$620.94kno data
David Collins
Senior Financial Advisor9.5yrsUS$293.50kno data
Kevin Dougherty
Vice President of Business Development & Marketing0yrsno datano data
Ronald Seidel
Executive Consultant15.1yrsno datano data

10.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FTEK's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vincent Arnone
Chairman4.8yrsUS$514.01k2.11% $422.8k
Thomas Shaw
Lead Director9yrsUS$57.50k0.13% $27.1k
Dennis Zeitler
Independent Director6.8yrsUS$50.00k0.26% $52.0k
Douglas Bailey
Director21.8yrsUS$40.00k26.79% $5.4m
James Markowsky
Independent Director3yrsUS$45.00k0.13% $27.1k
Sharon Jones
Independent Director1.9yrsUS$31.67k0.069% $13.8k

4.9yrs

Average Tenure

69.5yo

Average Age

Experienced Board: FTEK's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fuel Tech, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fuel Tech, Inc.
  • Ticker: FTEK
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$20.075m
  • Shares outstanding: 24.19m
  • Website: https://www.ftek.com

Number of Employees


Location

  • Fuel Tech, Inc.
  • 27601 Bella Vista Parkway
  • Warrenville
  • Illinois
  • 60555
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTEKNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1993
FUE1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1993

Biography

Fuel Tech, Inc. provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through Air Pollution Control Technology and FUEL CHEM Technology segments. The Air Pollution Control Technology segment offers technologies to reduce nitrogen oxide (NOx) emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources by low and ultra-low NOx burners; over-fire air systems; NOxOUT and HERT selective non-catalytic reduction systems; advanced selective catalytic reduction systems; NOxOUT CASCADE and NOxOUT-SCR processes; ULTRA technology; ammonia injection grid and graduated straightening grid systems; and flue gas conditioning systems. The FUEL CHEM Technology segment provides programs to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide through the addition of chemicals into the furnace using TIFI targeted in-furnace injection technology. This segment offers its FUEL CHEM program for plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, university, and district heating markets, as well as to the owners of boilers, furnaces, and other combustion units. The company was founded in 1987 and is headquartered in Warrenville, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 23:55
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.