NYSE:FTSI

Stock Analysis Report

Executive Summary

FTS International, Inc. provides hydraulic fracturing services in North America.

Snowflake

Fundamentals

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has FTS International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

FTSI

2.4%

US Energy Services

2.3%

US Market


1 Year Return

-86.8%

FTSI

-46.9%

US Energy Services

5.6%

US Market

Return vs Industry: FTSI underperformed the US Energy Services industry which returned -46.9% over the past year.

Return vs Market: FTSI underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

FTSIIndustryMarket
7 Day-4.6%2.4%2.3%
30 Day-46.1%-15.8%-1.0%
90 Day-64.5%-15.7%-0.7%
1 Year-86.8%-86.8%-45.4%-46.9%7.9%5.6%
3 Yearn/a-55.3%-60.7%45.6%36.3%
5 Yearn/a-65.6%-70.7%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is FTS International undervalued compared to its fair value and its price relative to the market?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FTSI ($1.66) is trading below our estimate of fair value ($2.13)

Significantly Undervalued: FTSI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FTSI is good value based on its PE Ratio (6.7x) compared to the Energy Services industry average (14.7x).

PE vs Market: FTSI is good value based on its PE Ratio (6.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FTSI is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: FTSI is overvalued based on its PB Ratio (3.1x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is FTS International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

69.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTSI's forecast earnings growth (69.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FTSI's earnings (69.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FTSI's revenue is expected to decline over the next 3 years (-3.2% per year).

High Growth Revenue: FTSI's revenue is forecast to decline over the next 3 years (-3.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FTSI's Return on Equity is forecast to be very high in 3 years time (52.8%).


Next Steps

Past Performance

How has FTS International performed over the past 5 years?

102.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FTSI's earnings have grown significantly by 102% per year over the past 5 years.

Accelerating Growth: FTSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FTSI had negative earnings growth (-95.9%) over the past year, making it difficult to compare to the Energy Services industry average (-13.1%).


Return on Equity

High ROE: Whilst FTSI's Return on Equity (46.55%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: FTSI has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: FTSI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is FTS International's financial position?


Financial Position Analysis

Short Term Liabilities: FTSI's short term assets ($377.5M) exceeds its short term liabilities ($127.8M)

Long Term Liabilities: FTSI's short term assets (377.5M) do not cover its long term liabilities (536.7M)


Debt to Equity History and Analysis

Debt Level: FTSI's debt to equity ratio (814.1%) is considered high

Reducing Debt: Insufficient data to determine if FTSI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FTSI's debt is well covered by operating cash flow (54.8%).

Interest Coverage: FTSI's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: FTSI has a high level of physical assets or inventory.

Debt Coverage by Assets: FTSI's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is FTS International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if FTSI'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 FTSI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of FTS International's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Mike Doss (46yo)

4yrs

Tenure

US$11,082,070

Compensation

Mr. Michael J. Doss, also known as Mike, has been the Chief Executive Officer of FTS International Manufacturing, LLC since April 2016 and has been its Director since February 2018. Mr. Doss has been Chief ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mike's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.0yrs

Average Tenure

46yo

Average Age

Experienced Management: FTSI's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: FTSI's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Karen Thornton (49yo)

    Chief Administrative Officer

    • Tenure: 2.6yrs
    • Compensation: US$3.99m
  • Buddy Petersen (53yo)

    Chief Operating Officer

    • Tenure: 4yrs
    • Compensation: US$9.90m
  • Mike Doss (46yo)

    CEO & Director

    • Tenure: 4yrs
    • Compensation: US$11.08m
  • Lance Turner (39yo)

    CFO & Treasurer

    • Tenure: 4yrs
    • Compensation: US$6.50m
  • Jennifer Keefe (46yo)

    Senior VP

    • Tenure: 2.6yrs
    • Compensation: US$3.85m
  • Michael Messina

    Associate of Finance and Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike Jennings (53yo)

    Independent Director

    • Tenure: 0.8yrs
  • Yong Goh (67yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
  • Nick Dell'Osso (42yo)

    Independent Director

    • Tenure: 8.4yrs
  • Hong Sim (57yo)

    Independent Director

    • Tenure: 6.3yrs
  • Carol Johnson (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$148.90k
  • Tiong Ong (54yo)

    Independent Director

    • Tenure: 8.4yrs
  • Bryan Lemmerman (44yo)

    Independent Director

    • Tenure: 6.7yrs
  • Mike Doss (46yo)

    CEO & Director

    • Tenure: 4yrs
    • Compensation: US$11.08m

Company Information

FTS International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FTS International, Inc.
  • Ticker: FTSI
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$180.994m
  • Shares outstanding: 109.03m
  • Website: https://www.ftsi.com

Number of Employees


Location

  • FTS International, Inc.
  • 777 Main Street
  • Suite 2900
  • Fort Worth
  • Texas
  • 76102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTSINYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2018
FT5DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2018

Biography

FTS International, Inc. provides hydraulic fracturing services in North America. Its services enhance hydrocarbon flow from oil and natural gas wells drilled by exploration and production companies (E&P),  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:10
End of Day Share Price2019/10/16 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.