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 22th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of FTS International Inc, consider:
The compound growth rate in the free cash flow of FTS International Inc over the past 2.15 years is -0.35%; that's better than only 8.83% of cash flow producing equities in the Energy sector, where it is classified.
8% of the company's capital comes from equity, which is greater than only 2.74% 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 0.05. This coverage rate is greater than that of only 23.38% 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 FTSI, try PEIX, SLB, MRO, MPC, and FLMN.
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FTSI Loses More Fleet The fall in energy demand after COVID-19 has wrecked the already fragile hydraulic fracturing market in the U.S. onshore. Although the fracking activity in the natural gas-dominant wells has fared relatively well, the overall pricing has declined, causing the natural gas compression equipment and services providers...