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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 46.1GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-9.1%
Sector: 9.1%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FORUM ENERGY TECHNOLOGIES, INC. (FET) receives a "Hold" rating with a composite score of 52.6/100, ranked #132 out of 4446 stocks. Key factor scores: Quality 46/100, Value 50/100, Momentum 77/100. This is quantitative analysis only — not investment advice.
FORUM ENERGY TECHNOLOGIES, INC. (FET) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FORUM ENERGY TECHNOLOGIES, INC. Do?
Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. It operates through three segments: Drilling & Downhole, Completions, and Production. The Drilling & Downhole segment designs, manufactures, and supplies products, and provides related services to the drilling, well construction, artificial lift, and subsea energy construction markets, including applications in oil and natural gas, renewable energy, defense, and communications. This segment offers drilling technologies consisting of capital equipment and a line of products consumed in the drilling process; well construction casing and cementing equipment, and protection products for artificial lift equipment and cables; and subsea remotely operated vehicles and trenchers, submarine rescue vehicles, specialty components and tools, and complementary subsea technical services. The Completions segment offers hydraulic fracturing pumps, cooling systems, high-pressure flexible hoses, and flow iron for pressure pumping, hydraulic fracturing and flowback services markets; wireline cable and pressure control equipment for well completion and intervention service markets; and coiled tubing strings and coiled line pipe. The Production segment designs, manufactures, and supplies products, and provides related equipment and services for production and infrastructure markets. This segment offers engineered process systems, production equipment, specialty separation equipment, and various industrial valves for oil and natural gas customers, power generation, renewable energy, and other general industrial applications. The company was formerly known as Forum Oilfield Technologies, Inc. and changed its name to Forum Energy Technologies, Inc. in August 2010. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas. FORUM ENERGY TECHNOLOGIES, INC. (FET) is classified as a small-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Neal Lux and employs approximately 1,500 people, headquartered in Houston, Texas. With a market capitalization of $697M, FET is one of the notable companies in the Industrials sector.
FORUM ENERGY TECHNOLOGIES, INC. (FET) Stock Rating — Hold (April 2026)
As of April 2026, FORUM ENERGY TECHNOLOGIES, INC. receives a Hold rating with a composite score of 52.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FET ranks #132 out of 4,446 stocks in our coverage universe. Within the Industrials sector, FORUM ENERGY TECHNOLOGIES, INC. ranks #32 of 756 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FET Stock Price and 52-Week Range
FORUM ENERGY TECHNOLOGIES, INC. (FET) currently trades at $58.98. The 52-week high for FET is $63.58, which means the stock is currently trading -7.2% from its annual peak. The 52-week low is $12.78, putting the stock 361.5% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is FET Overvalued or Undervalued? — Valuation Analysis
FORUM ENERGY TECHNOLOGIES, INC. (FET) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 2.26x, versus the sector average of 2.18x. The price-to-sales ratio is 0.83x, compared to 0.51x for the average Industrials stock. On an enterprise value basis, FET trades at 26.18x EV/EBITDA, versus 5.63x for the sector.
Overall, FET's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FORUM ENERGY TECHNOLOGIES, INC. Profitability — ROE, Margins, and Quality Score
FORUM ENERGY TECHNOLOGIES, INC. (FET) earns a quality factor score of 46/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -9.1%, compared to the Industrials sector average of 9.1%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -3.5% versus the sector average of 3.3%.
On a margin basis, FORUM ENERGY TECHNOLOGIES, INC. reports gross margins of 28.0%, compared to 35.8% for the sector. The operating margin is 3.3% (sector: 6.2%). Net profit margin stands at -3.3%, versus 3.9% for the average Industrials stock. Revenue growth is running at -4.4% on a trailing basis, compared to 6.5% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
FET Debt, Balance Sheet, and Financial Health
FORUM ENERGY TECHNOLOGIES, INC. has a debt-to-equity ratio of 47.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.17x, indicating strong short-term liquidity. Total debt on the balance sheet is $136M. Cash and equivalents stand at $32M.
FET has a beta of 1.48, meaning it is more volatile than the broader market — a $10,000 investment in FET would be expected to move 48.5% more than the S&P 500 on any given day. The stability factor score for FORUM ENERGY TECHNOLOGIES, INC. is 44/100, reflecting average volatility within the normal range for its sector.
FORUM ENERGY TECHNOLOGIES, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, FORUM ENERGY TECHNOLOGIES, INC. reported revenue of $797M and earnings per share (EPS) of $-0.81. Net income for the quarter was $-27M. Gross margin was 28.0%. Operating income came in at $26M.
In FY 2025, FORUM ENERGY TECHNOLOGIES, INC. reported revenue of $791M and earnings per share (EPS) of $-0.81. Net income for the quarter was $-10M. Gross margin was 27.7%. Revenue grew -3.1% year-over-year compared to FY 2024. Operating income came in at $30M.
In Q3 2025, FORUM ENERGY TECHNOLOGIES, INC. reported revenue of $196M and earnings per share (EPS) of $-1.76. Net income for the quarter was $-21M. Gross margin was 20.5%. Revenue grew -5.6% year-over-year compared to Q3 2024. Operating income came in at $-6M.
In Q2 2025, FORUM ENERGY TECHNOLOGIES, INC. reported revenue of $200M and earnings per share (EPS) of $0.62. Net income for the quarter was $8M. Gross margin was 29.7%. Revenue grew -2.7% year-over-year compared to Q2 2024. Operating income came in at $15M.
Over the past 8 quarters, FORUM ENERGY TECHNOLOGIES, INC. has demonstrated a growth trajectory, with revenue expanding from $205M to $797M. Investors analyzing FET stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FET Dividend Yield and Income Analysis
FORUM ENERGY TECHNOLOGIES, INC. (FET) does not currently pay a dividend. This is common among smaller companies in the Machinery industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
FET Momentum and Technical Analysis Profile
FORUM ENERGY TECHNOLOGIES, INC. (FET) has a momentum factor score of 77/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 41/100 reflects moderate short selling activity.
FET vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing FET against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FET vs S&P 500 (SPY) comparison to assess how FORUM ENERGY TECHNOLOGIES, INC. stacks up against the broader market across all factor dimensions.
FET Next Earnings Date
No upcoming earnings date has been announced for FORUM ENERGY TECHNOLOGIES, INC. (FET) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FET? — Investment Thesis Summary
FORUM ENERGY TECHNOLOGIES, INC. presents a balanced picture with arguments on both sides. Price momentum is positive at 77/100, suggesting the trend favors buyers.
In summary, FORUM ENERGY TECHNOLOGIES, INC. (FET) earns a Hold rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FET stock.
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Institutional Research Dossier
FORUM ENERGY TECHNOLOGIES, INC. (FET) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Forum Energy Technologies (FET) receives a Buy rating, driven primarily by its strong momentum score and the potential for a turnaround in profitability. While current profitability metrics are weak, the company's strategic positioning in the oil and gas sector, coupled with a recent focus on free cash flow generation, suggests an opportunity for significant upside. The key takeaway is that FET represents a speculative but potentially rewarding investment, contingent on its ability to sustain free cash flow and improve its operating margins.
However, investors must acknowledge the inherent risks associated with FET, including its exposure to the cyclical nature of the energy industry and its current lack of consistent profitability. The company's negative net income and relatively low quality score raise concerns about its long-term sustainability. Therefore, a Buy rating is predicated on the expectation of a substantial improvement in financial performance, making it a higher-risk, higher-reward investment opportunity.
Business Strategy & Overview
Forum Energy Technologies operates as a diversified provider of equipment and services to the oil, natural gas, industrial, and renewable energy sectors. The company's business is structured into three segments: Drilling & Downhole, Completions, and Production. This diversification allows FET to capture revenue streams across various stages of the energy value chain, from initial drilling and well construction to production and infrastructure development. The Drilling & Downhole segment focuses on providing capital equipment and consumable products for drilling, well construction, and subsea energy construction, including remotely operated vehicles and trenchers. The Completions segment offers hydraulic fracturing pumps, cooling systems, and wireline cable for well completion and intervention services. The Production segment provides engineered process systems, production equipment, and industrial valves for oil and gas customers, as well as power generation and renewable energy applications.
FET's strategic positioning involves targeting both traditional oil and gas markets and emerging renewable energy applications. This dual focus aims to mitigate the risks associated with the cyclical nature of the oil and gas industry while capitalizing on the growth potential of renewable energy. The company's product pipeline includes continuous development and improvement of its existing product lines, as well as the introduction of new technologies and services to meet evolving customer needs. A key aspect of FET's strategy is to provide integrated solutions and services, which enhances customer relationships and creates opportunities for cross-selling and upselling.
The company's success is heavily reliant on the overall health of the energy industry, particularly oil and gas exploration and production activities. Increased drilling activity and capital expenditures by energy companies drive demand for FET's products and services. Conversely, periods of low oil prices and reduced drilling activity can negatively impact the company's revenue and profitability. FET also faces competition from other equipment and service providers in the energy sector, requiring it to maintain a competitive edge through technological innovation, product quality, and customer service.
Furthermore, FET's strategy includes a focus on operational efficiency and cost management to improve profitability. This involves streamlining its manufacturing processes, optimizing its supply chain, and reducing overhead expenses. The company also emphasizes the importance of safety and environmental responsibility in its operations, which is crucial for maintaining its reputation and complying with regulatory requirements. The recent focus on generating free cash flow is a significant strategic shift, indicating a move towards financial discipline and value creation for shareholders. This shift is essential for improving the company's financial health and supporting future growth initiatives.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-4.4%
Sector: 6.5%
-167% VS SCTR
Economic Moat Analysis
Forum Energy Technologies possesses a narrow economic moat, primarily derived from a combination of switching costs and specialized expertise within specific niches of the energy equipment and services market. The company's products, particularly in the Drilling & Downhole and Completions segments, often require significant integration with existing customer infrastructure and processes. This integration creates switching costs, as customers may face disruption and expense when transitioning to alternative suppliers. The specialized nature of FET's equipment and services, particularly in areas like subsea remotely operated vehicles and engineered process systems, also contributes to its competitive advantage.
However, the moat is considered narrow due to the presence of numerous competitors in the broader energy equipment and services market. While FET may hold a leading position in certain niche areas, it faces intense competition from larger, more diversified companies with greater financial resources and broader product offerings. The lack of significant network effects also limits the company's moat. While customer relationships are important, the value of FET's products and services is not significantly enhanced by the size or interconnectedness of its customer base.
Intangible assets, such as patents and proprietary technology, play a role in FET's competitive advantage, but their impact is limited. While the company invests in research and development to innovate and improve its products, the energy equipment and services market is characterized by rapid technological advancements, which can quickly erode the value of existing intellectual property. Cost advantages are not a primary driver of FET's moat. While the company focuses on operational efficiency and cost management, it does not possess a significant cost advantage over its competitors. The company's gross margin of 28.0% is below the sector average of 35.8%, indicating a lack of pricing power and cost competitiveness.
Efficient scale is also not a major factor in FET's moat. The energy equipment and services market is not characterized by natural monopolies or significant economies of scale. While larger companies may benefit from certain scale advantages, smaller, more specialized companies like FET can still compete effectively by focusing on niche markets and providing customized solutions. The sustainability of FET's narrow moat is contingent on its ability to maintain its technological edge, provide superior customer service, and adapt to changing market conditions. Failure to innovate and differentiate its products and services could weaken its competitive position and erode its moat over time.
Financial Health & Profitability
Forum Energy Technologies' financial health presents a mixed picture. While the company has demonstrated strong free cash flow generation recently, its historical profitability has been inconsistent, and its balance sheet carries a moderate level of debt. The company's revenue for the trailing twelve months (TTM) is $791.47 million, a decrease of 4.4% compared to the previous fiscal year. This decline in revenue raises concerns about the company's ability to grow its business in a competitive market. The company's net income for the TTM period is negative, at -$9.66 million, indicating a lack of profitability. This is a significant improvement compared to the previous fiscal year's net loss of -$135.33 million, but it still highlights the company's ongoing challenges in achieving sustained profitability.
FET's EBITDA for the TTM period is $30.14 million, which is a positive sign, but the company's EBITDA margin remains relatively low. The company's free cash flow (FCF) for the TTM period is $231.30 million, which is a substantial improvement compared to the previous fiscal year's negative FCF of -$26.15 million. This strong FCF generation is a key strength of the company and provides it with the financial flexibility to invest in growth initiatives, reduce debt, or return capital to shareholders. The company's total cash balance is $31.69 million, while its total debt is $135.93 million. This results in a debt-to-equity ratio of 47.00, which is lower than the sector average of 70.00, indicating a relatively conservative capital structure. The company's current ratio is 2.17, which indicates a strong ability to meet its short-term obligations.
The company's return on equity (ROE) is -9.1%, which is significantly below the sector average of 9.2%, reflecting its lack of profitability. The company's gross margin is 28.0%, which is below the sector average of 35.8%, indicating a lack of pricing power and cost competitiveness. The company's operating margin is 3.3%, which is also below the sector average of 6.2%, highlighting its challenges in controlling operating expenses. The company's net margin is -3.3%, which is significantly below the sector average of 3.7%, reflecting its lack of profitability.
Analyzing the quarterly financial history reveals a volatile pattern of revenue and profitability. While some quarters have shown positive net income and improved margins, others have experienced significant losses. This volatility underscores the cyclical nature of the energy industry and the challenges FET faces in maintaining consistent financial performance. The recent improvement in free cash flow generation is a positive trend, but it remains to be seen whether the company can sustain this performance over the long term. Overall, FET's financial health is improving, but it still requires further improvement in profitability and revenue growth to achieve long-term sustainability.
Valuation Assessment
Forum Energy Technologies' valuation presents a complex picture, with some metrics suggesting undervaluation while others indicate potential overvaluation relative to its peers and historical performance. The company's price-to-earnings (P/E) ratio is not applicable (N/A) due to its negative net income, making it impossible to assess its valuation based on earnings multiples. However, the company's enterprise value-to-EBITDA (EV/EBITDA) ratio is 6.4x, which is slightly higher than the sector average of 5.7x. This suggests that FET may be slightly overvalued compared to its peers based on its enterprise value relative to its earnings before interest, taxes, depreciation, and amortization.
Given the recent strong free cash flow generation, a free cash flow (FCF) yield analysis is warranted, though the data provided does not include the necessary historical share price data to calculate a precise yield. However, with a market cap of $633.61 million and TTM FCF of $231.30 million, the implied FCF yield is substantial. This suggests that the company may be undervalued based on its ability to generate cash flow relative to its market capitalization. However, it is important to consider whether this level of FCF generation is sustainable, given the company's historical volatility and the cyclical nature of the energy industry.
The company's revenue growth has been negative in the most recent TTM period, with a decline of 4.4% compared to the previous fiscal year. This lack of revenue growth raises concerns about the company's ability to generate future earnings and cash flow. The company's profitability metrics, such as ROE, gross margin, operating margin, and net margin, are all below the sector averages, indicating a lack of efficiency and profitability compared to its peers. These factors suggest that FET may not deserve a premium valuation compared to other companies in the industrials sector.
Overall, FET's valuation is mixed. While the company's EV/EBITDA ratio suggests slight overvaluation compared to its peers, its strong free cash flow generation indicates potential undervaluation. However, the company's negative net income, declining revenue growth, and below-average profitability metrics raise concerns about its long-term sustainability and ability to justify a higher valuation. Therefore, the Buy rating is predicated on the expectation of a significant improvement in financial performance, particularly in terms of revenue growth and profitability. If the company can demonstrate sustained improvement in these areas, its valuation could increase substantially. However, if the company fails to improve its financial performance, its valuation could decline.
Risk & Uncertainty
Forum Energy Technologies faces several specific risks that could negatively impact its business and financial performance. The most significant risk is its exposure to the cyclical nature of the energy industry. Demand for FET's products and services is heavily dependent on oil and gas exploration and production activities, which are highly sensitive to fluctuations in oil prices. A sustained period of low oil prices could lead to reduced drilling activity and capital expenditures by energy companies, resulting in lower revenue and profitability for FET. The transition to renewable energy sources also poses a long-term risk to FET's business. As the demand for oil and gas declines, the company may need to adapt its product offerings and business strategy to capitalize on the growth of renewable energy markets.
Competition is another significant risk for FET. The energy equipment and services market is highly competitive, with numerous companies vying for market share. FET faces competition from larger, more diversified companies with greater financial resources and broader product offerings. The company must continuously innovate and differentiate its products and services to maintain a competitive edge. The company's reliance on a limited number of key customers also poses a risk. The loss of one or more major customers could have a significant negative impact on its revenue and profitability. FET needs to diversify its customer base to reduce this concentration risk.
The company's debt level is a moderate risk factor. While its debt-to-equity ratio is lower than the sector average, the company still has a significant amount of debt outstanding. This debt could limit its financial flexibility and make it more vulnerable to economic downturns. The company's ability to generate sufficient cash flow to service its debt obligations is crucial. Regulatory risks also exist. Changes in environmental regulations or other government policies could increase the company's operating costs or restrict its ability to conduct business. FET must comply with all applicable laws and regulations to avoid penalties and maintain its reputation.
Bulls Say / Bears Say
The Bull Case
BULL VIEWForum Energy Technologies is poised to benefit from increased drilling activity and capital expenditures in the oil and gas sector, driving revenue growth and improved profitability.
BULL VIEWThe company's strong free cash flow generation provides it with the financial flexibility to invest in growth initiatives, reduce debt, and return capital to shareholders, creating value for investors.
BULL VIEWFET's strategic positioning in both traditional oil and gas markets and emerging renewable energy applications allows it to capitalize on the growth potential of both sectors, mitigating risks associated with the energy transition.
The Bear Case
BEAR VIEWForum Energy Technologies' inconsistent profitability and negative net income raise concerns about its long-term sustainability and ability to generate consistent returns for investors.
BEAR VIEWThe company's exposure to the cyclical nature of the energy industry makes it vulnerable to fluctuations in oil prices and reduced drilling activity, potentially leading to lower revenue and profitability.
BEAR VIEWFET's relatively low gross margin and operating margin compared to its peers indicate a lack of pricing power and cost competitiveness, limiting its ability to improve profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FET and 4,400+ other equities.
FORUM ENERGY TECHNOLOGIES, INC. exhibits a 60% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-3.5%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
28.0%
Sector: 35.8%
Operating Margin
Core business profitability
3.3%
Sector: 6.2%
Net Margin
Bottom-line profitability
-3.3%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
