📊 FTK Key Takeaways
Is FTK a Good Investment? Thesis Analysis
Flotek Industries demonstrates strong fundamental improvement with revenue growth of 26.9% YoY and exceptional net income growth of 190.8% YoY, driven by expanding margins and operational leverage. The company maintains healthy balance sheet metrics with a 0.35x debt-to-equity ratio and strong interest coverage of 83.6x, though modest free cash flow generation of 6.9M warrants attention to capital allocation sustainability.
Why Buy FTK? Key Strengths
- Exceptional net income growth of 190.8% YoY significantly outpacing revenue growth indicates expanding profitability and operational leverage
- Solid profitability metrics with 12.9% net margin, 27.0% ROE, and 13.9% ROA demonstrate efficient capital deployment
- Conservative leverage with 0.35x debt-to-equity ratio and 83.6x interest coverage provides financial flexibility and downside protection
- Strong liquidity position with 1.80x current ratio and 1.63x quick ratio supports operational stability
- Robust 26.9% revenue growth indicates market demand and business momentum in chemical products sector
FTK Investment Risks to Consider
- Free cash flow margin of only 2.9% relative to 12.9% net margin suggests potential working capital challenges or high capital intensity
- Operating cash flow of 7.2M is modest relative to net income of 30.5M, raising questions about earnings quality and cash conversion
- Low cash position of 5.7M relative to total assets of 220.0M limits financial cushion despite healthy leverage ratios
- Limited insider activity with only 3 Form 4 filings in 90 days may indicate limited insider confidence or engagement
- Small free cash flow generation of 6.9M constrains dividend capacity, debt paydown, and growth investment flexibility
Key Metrics to Watch
- Operating cash flow trend and cash conversion rate relative to net income to validate earnings quality
- Free cash flow generation and working capital management to assess capital intensity and sustainability
- Gross margin expansion or contraction to monitor competitive positioning and input cost pressures
- Revenue growth sustainability beyond current 26.9% YoY and margin maintenance during potential economic cycles
FTK Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility.
FTK Profitability Ratios
FTK vs Default Sector
How FLOTEK INDUSTRIES INC/CN/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FTK Overvalued or Undervalued?
Based on fundamental analysis, FLOTEK INDUSTRIES INC/CN/ appears fundamentally strong relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FTK Balance Sheet & Liquidity
FTK 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FLOTEK INDUSTRIES INC/CN/'s revenue has grown significantly by 346% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.34 reflects profitable operations.
FTK Growth Metrics (YoY)
FTK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $49.7M | $2.5M | $0.08 |
| Q2 2025 | $46.2M | $1.8M | $0.05 |
| Q1 2025 | $40.4M | $1.6M | $0.05 |
| Q3 2024 | $47.3M | $1.3M | $0.04 |
| Q2 2024 | $46.2M | -$21.0K | $0.06 |
| Q1 2024 | $40.4M | $1.6M | $0.05 |
| Q3 2023 | $45.6M | $1.3M | $0.04 |
| Q1 2023 | $10.4M | -$10.7M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FTK Capital Allocation
FTK SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FLOTEK INDUSTRIES INC/CN/ (CIK: 0000928054)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FTK
What is the AI rating for FTK?
FLOTEK INDUSTRIES INC/CN/ (FTK) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTK's key strengths?
Claude: Exceptional net income growth of 190.8% YoY significantly outpacing revenue growth indicates expanding profitability and operational leverage. Solid profitability metrics with 12.9% net margin, 27.0% ROE, and 13.9% ROA demonstrate efficient capital deployment.
What are the risks of investing in FTK?
Claude: Free cash flow margin of only 2.9% relative to 12.9% net margin suggests potential working capital challenges or high capital intensity. Operating cash flow of 7.2M is modest relative to net income of 30.5M, raising questions about earnings quality and cash conversion.
What is FTK's revenue and growth?
FLOTEK INDUSTRIES INC/CN/ reported revenue of $237.3M.
Does FTK pay dividends?
FLOTEK INDUSTRIES INC/CN/ does not currently pay dividends.
Where can I find FTK SEC filings?
Official SEC filings for FLOTEK INDUSTRIES INC/CN/ (CIK: 0000928054) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTK's EPS?
FLOTEK INDUSTRIES INC/CN/ has a diluted EPS of $0.84.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTK a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FLOTEK INDUSTRIES INC/CN/ has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FTK stock overvalued or undervalued?
Valuation metrics for FTK: ROE of 27.0% (sector avg: 15%), net margin of 12.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy FTK stock in 2026?
Our dual AI analysis gives FLOTEK INDUSTRIES INC/CN/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FTK's free cash flow?
FLOTEK INDUSTRIES INC/CN/'s operating cash flow is $7.2M, with capital expenditures of $292.0K. FCF margin is 2.9%.
How does FTK compare to other Default stocks?
Vs Default sector averages: Net margin 12.9% (avg: 12%), ROE 27.0% (avg: 15%), current ratio 1.80 (avg: 1.8).