FTS International, Inc. provides oil and natural gas well stimulation services to the exploration and production companies operating in the United States. It offers well completion services, including pressure pumping, wireline, and reservoir optimization technologies; and high-pressure hydraulic fracturing services. The company primarily focuses on the unconventional oil and natural gas formations in the Eagle Ford Shale, the Marcellus/Utica Shale, the Haynesville Shale, the Permian Basin, the Barnett Shale, Western Oklahoma; and the Bakken Shale. It operates 34 hydraulic fracturing fleets with approximately 1,584,500 horsepower in the aggregate. FTS International, Inc. is based in Cisco, Texas.
FTSI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FTSI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that FTS International Inc ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for FTSI, they are:
4% of the company's capital comes from equity, which is greater than only 1.62% of stocks in our cash flow based forecasting set.
FTS International Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.88. This coverage rate is greater than that of merely 17.13% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, FTS International Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than only 0% of stocks generating free cash flow.
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 FTSI, try COP, PARR, MMP, FET, and BTE.
Fracking service provider FTS International (FTSI) will file its prepackaged filing for Chapter 11 bankruptcy tomorrow. The company last month had reached restructuring support agreements with about 75% of holders of its 6.25% senior secured notes due 2022 and about 64% of secured debt claims. Now it's entered a second...
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