NYSE:FET

Stock Analysis Report

Forum Energy Technologies

Executive Summary

Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.

Risks

  • Forum Energy Technologies has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Forum Energy Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

27.1%

NYSE:FET

3.9%

US Energy Services

2.9%

US Market


1 Year Return

-84.9%

NYSE:FET

-48.3%

US Energy Services

0.2%

US Market

FET underperformed the Energy Services industry which returned -47.9% over the past year.

FET underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

FETIndustryMarket
7 Day27.1%3.9%2.9%
30 Day-25.3%-16.0%-2.3%
90 Day-57.9%-14.1%3.1%
1 Year-84.9%-84.9%-47.0%-48.3%2.4%0.2%
3 Year-89.8%-89.8%-52.1%-57.8%41.7%32.4%
5 Year-94.5%-94.5%-70.9%-75.2%55.1%37.9%

Price Volatility Vs. Market

How volatile is Forum Energy Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Forum Energy Technologies undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Forum Energy Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).

Forum Energy Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Forum Energy Technologies is loss making, we can't compare its value to the US Energy Services industry average.

Forum Energy Technologies is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Forum Energy Technologies, we can't assess if its growth is good value.


Price Based on Value of Assets

Forum Energy Technologies is good value based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

How is Forum Energy Technologies expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

62.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Forum Energy Technologies's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Forum Energy Technologies's earnings are expected to grow significantly at over 20% yearly.

Forum Energy Technologies's revenue growth is positive but not above the United States of America market average.

Forum Energy Technologies's earnings growth is expected to exceed the United States of America market average.

Forum Energy Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Forum Energy Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Forum Energy Technologies performed over the past 5 years?

-52.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Forum Energy Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Forum Energy Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Forum Energy Technologies's 1-year growth to the US Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Forum Energy Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Forum Energy Technologies has efficiently used its assets last year compared to the US Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Forum Energy Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Forum Energy Technologies's financial position?


Financial Position Analysis

Forum Energy Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Forum Energy Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Forum Energy Technologies's level of debt (46.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (30.4% vs 46.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


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.

Whilst loss making Forum Energy Technologies has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Forum Energy Technologies has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.4% per year.


Next Steps

Dividend

What is Forum Energy Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Forum Energy Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Forum Energy Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Forum Energy Technologies has not reported any payouts.

Unable to verify if Forum Energy Technologies's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Forum Energy Technologies has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Forum Energy Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Forum Energy Technologies's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Cris Gaut (63yo)

0.8yrs

Tenure

US$9,887,692

Compensation

Mr. C. Christopher Gaut, also known as Cris, has been the Chairman of the Board of Forum Energy Technologies, Inc. since December 31, 2017 and its Chief Executive Officer since November 30, 2018. He has be ...


CEO Compensation Analysis

Cris's remuneration is higher than average for companies of similar size in United States of America.

Cris's compensation has increased whilst company is loss making.


Management Age and Tenure

1.3yrs

Average Tenure

49yo

Average Age

The average tenure for the Forum Energy Technologies management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.7yrs

Average Tenure

60yo

Average Age

The tenure for the Forum Energy Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jim McCulloch (66yo)

    Chief Compliance Officer & Special Advisor to the CEO

    • Tenure: 0.5yrs
    • Compensation: US$1.21m
  • Cris Gaut (63yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$9.89m
  • Michael Danford (56yo)

    Senior Vice President of Human Resources

    • Tenure: 4.5yrs
    • Compensation: US$842.96k
  • David Williams (49yo)

    Senior Vice President of Operations

    • Tenure: 1.3yrs
    • Compensation: US$912.80k
  • Donna Smith

    Director of Marketing & Communications

    • Tenure: 0.0yrs
  • Pablo Mercado (42yo)

    Senior VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.19m
  • James Bement

    Senior Vice President of Drilling Technologies

    • Tenure: 5.4yrs
  • John Ivascu (41yo)

    Senior VP

    • Tenure: 0.5yrs
  • Mark Conlon

    Director of Investor Relations & Planning

    • Tenure: 0.0yrs
  • John McElroy (35yo)

    Principal Accounting Officer & Corporate Controller

    • Tenure: 0.0yrs

Board Members

  • Terry O'Toole (60yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$227.50k
  • David Baldwin (56yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$225.00k
  • Andy Waite (59yo)

    Independent Director

    • Tenure: 9.0yrs
    • Compensation: US$225.00k
  • Mike McShane (65yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$247.50k
  • Louis Raspino (66yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$235.00k
  • Cris Gaut (63yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$9.89m
  • John Carrig (67yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$240.00k
  • John Schmitz (59yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$230.00k
  • Evelyn Angelle (52yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$240.00k

Company Information

Forum Energy Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forum Energy Technologies, Inc.
  • Ticker: FET
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$200.779m
  • Shares outstanding: 109.72m
  • Website: https://www.f-e-t.com

Number of Employees


Location

  • Forum Energy Technologies, Inc.
  • 920 Memorial City Way
  • Suite 1000
  • Houston
  • Texas
  • 77024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FETNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2012

Biography

Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company operates through three segments: Dr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:26
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.