Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The company was founded in 2010 and is based in Houston, Texas.
FET Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Forum Energy Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Forum Energy Technologies Inc ranked in the 56th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 52.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Forum Energy Technologies Inc, consider:
The compound growth rate in the free cash flow of Forum Energy Technologies Inc over the past 5.52 years is -0.14%; that's higher than only 20.67% of free cash flow generating stocks in the Energy sector.
10% of the company's capital comes from equity, which is greater than only 4.01% of stocks in our cash flow based forecasting set.
Forum Energy Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -19.36. This coverage rate is greater than that of merely 5.58% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FET, try NSFDF, PHX, TNK, DCP, and MTRX.
Forum Energy Technologies, Inc. ("Forum" or the "Company") (NYSE: FET) today announced that as of the preliminary tender deadline, which was 5:00 p.m. ET on July 17, 2020, participation in its pending exchange offer for the 6.25% senior notes due 2021 fell short of the amount required to consummate the transaction.
Forum Energy Technologies (FET) projects Q2 revenue to be in the range of $110M - $115M, a decline of ~37-40% from Q1 revenue of $183M.Free cash flow after capital expenditures and interest expense is now expected to be ~negative $6MFull Q2 earnings is scheduled in the beginning of August 2020....
Forum Energy Technologies, Inc. ("Forum" or the "Company") (NYSE: FET) today announced that revenue for the second quarter 2020 is now projected to be in the range of $110 to $115 million, a decline of approximately 37-40% from first quarter revenue of $183 million. Free cash flow after capital expenditures and interest expense for the quarter is now expected to be approximately negative $6 million. Due to the preliminary nature of this guidance, a reconciliation to cash flow from operations is not currently available. A full reconciliation will be provided with the Forum’s second quarter 2020 earnings announcement, which is currently scheduled to be released in the beginning of August 2020.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]