# Flotek Industries (FTK.US)

Canonical: https://gigainvestors.com/s/FTK

Analysis as of: 2026-10-16T07:28:39.885Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $24.73 per share; close as of 2026-10-15.

Estimated value: low $4.47 per share, central $5.08 per share, high $5.90 per share. Buy at or below the central value $5.08 per share. Valuation as of 2026-10-16T07:28:39.885Z; scenarios are not confidence intervals.

Expected annual return: 4.4% at the stated quote. About 4.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 6

- Operating margin variation: 1.91×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.01×

- FY2018: -0.39×

- FY2019: -0.63×

- FY2020: -2.70×

- FY2021: -0.73×

- FY2022: -0.26×

- FY2023: 0.12×

- FY2024: 0.07×

- FY2025: 0.12×

- LTM to Jun 2026: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -12.0%

- ROIC, second-lowest year: -113.4%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 23.1%

- Recent gross margin (lower of latest and 3-year median): 21.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: -21.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -1.7%

- FY2017: -0.9%

- FY2018: -22.2%

- FY2019: -66.9%

- FY2020: -745.4%

- FY2021: -113.4%

- FY2022: -25.5%

- FY2023: 20.3%

- FY2024: 9.4%

- FY2025: 17.9%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.9M

- Net income, five-year total: -$7.1M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -9.1 pp

- Working capital / revenue, final three-year average: 22.8%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$30M

- FY2022: -$38M

- FY2023: $25M

- FY2024: $9.4M

- FY2025: $37M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -1.7% vs 17.9%

- Per-share earnings: -2.85 to 0.84 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 14.7%

- Ordinary dilution, 5-year annual growth: 26.0%

- Market cap gain: $430M

- Cumulative retained earnings: -$276M

- Diluted shares, 10-year annual growth: 14.7%

- Diluted shares, 5-year annual growth: 26.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $3.70

- Per-share value, starting three-year median: -$2.85

- Per-share value, ending three-year median: $0.84

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 3.4%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $16K

- Cumulative net income, 10 years: -$324M

- ROIC, first three-year median: -1.7%

- ROIC, last three-year median: 17.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$5.26

- FY2017: -$2.85

- FY2018: -$7.28

- FY2019: -$3.46

- FY2020: -$11.98

- FY2021: -$2.50

- FY2022: -$3.41

- FY2023: $0.87

- FY2024: $0.34

- FY2025: $0.84

### accounting: fail

- Sloan accruals exceed 10%

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 10.6%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 31.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.24×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.2%

- FY2017: -13.3%

- FY2018: -17.8%

- FY2019: -6.4%

- FY2020: -102.8%

- FY2021: -9.3%

- FY2022: 1.4%

- FY2023: 22.9%

- FY2024: 4.2%

- FY2025: 10.6%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 21.1% a year for ten years · "Flotek raises guidance for 2026 revenue, EBITDA on international chemistry strength" (seekingalpha.com, Sep 2026) · sales +23.5%

Story as of 2026-10-16T09:58:47.552Z; price observation 2026-10-15.

Price needs cash profits to grow 21.1% a year for ten years

- 2026-09-09: Flotek raises guidance for 2026 revenue, EBITDA on international chemistry strength ([seekingalpha.com](https://seekingalpha.com/news/4641105-flotek-raises-guidance-for-2026-revenue-ebitda-on-international-chemistry-strength?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +23.5%; source https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm; observed 2026-03-16.

- FY2017: $317M 

- FY2018: $178M 

- FY2019: $119M 

- FY2020: $53M 

- FY2021: $43M 

- FY2022: $136M 

- FY2023: $188M 

- FY2024: $187M 

- FY2025: $237M 

- FY2026: $293M 

### Gross margin · FY2025

gross margin 25.2%; source https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm; observed 2026-03-16.

- FY2016: 34.5% 

- FY2017: 28.3% 

- FY2018: 94.8% 

- FY2019: 92.9% 

- FY2021: 7.5% 

- FY2023: 12.9% 

- FY2024: 21.1% 

- FY2025: 25.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas equipment & services; annual sales are USD 237.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm (filed 2026-03-16); FY2025: revenue 237262000; grossProfit 59833000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FTK.US: Flotek Industries, Inc. operates as a chemical and data analytics company in the United States, the United Arab Emirates, and internationally. It operates in two segments, Chemistry Technologies (CT) and Data Analytics (DA). The CT segment offers chemistry solutions, such as proprietary chemistries, specialty chemistries, logistics, and technology services for desired chemical applications program to integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, geothermal energy companies, solar energy companies, and advanced alternative energy companies. This segment also designs, develops, manufactures, packages, distributes, and markets chemistry solutions designed for existing sustainability practices to reduce the environmental impact of energy on the air, water, land, and people. The DA segment is also involved in the provision of analytical measurement and digital solutions, including measure-and-control services for near real-time insights for process control in the oil and gas value chain, and emerging applications in power and digital valuation; and solutions to optimize performance, improve decision-making, and reduce emissions and carbon intensity; and short and long-term equipment rental. It sells its products directly through in-house sales professionals and contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

### Why customers stay

Margins ranged from 12.9% to 25.2% during 2023–25; it lost 12% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: grossProfit / revenue = 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: grossProfit / revenue = 21.1%.

- Source: https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm (filed 2026-03-16); FY2025: grossProfit / revenue = 25.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); 10-year return on capital observations [[2016,-0.01731064431796222],[2017,-0.008982778808854336],[2018,-0.22175589063128268],[2019,-0.669221102708525],[2020,-7.454146085128744],[2021,-1.1336271155512978],[2022,-0.25464182364182364],[2023,0.202512766026733],[2024,0.09388144330919308],[2025,0.17862064148235637]]; median -0.11953326747462245. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: growth capex 347000; upkeep 734000; owner earnings 24713000. Growth capex / owner earnings = 0.014041192894428034.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: growth capex 0; upkeep 1940000; owner earnings 9449000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm (filed 2026-03-16); FY2025: growth capex 0; upkeep 1984000; owner earnings 36688000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Dividend observations: [[2016,338594000],[2017,383181000],[2018,277599000],[2019,0],[2020,4788000],[2021,390000],[2022,224000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 71% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FTK.US SharesStats.PercentInsiders = 70.974 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 21.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Ten-year compound average after fade. Initial solved rate 0.2945992137018788. Price 24.73; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.807244690136747 → FY2025 1.0147140170372828. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $11.78 per share

- 2016-11: $13.46 per share

- 2016-12: $9.39 per share

- 2017-01: $10.57 per share

- 2017-02: $13.52 per share

- 2017-03: $12.79 per share

- 2017-04: $12.01 per share

- 2017-05: $9.88 per share

- 2017-06: $8.94 per share

- 2017-07: $8.42 per share

- 2017-08: $5.18 per share

- 2017-09: $4.65 per share

- 2017-10: $4.92 per share

- 2017-11: $4.72 per share

- 2017-12: $4.66 per share

- 2018-01: $5.50 per share

- 2018-02: $5.95 per share

- 2018-03: $6.10 per share

- 2018-04: $3.57 per share

- 2018-05: $3.13 per share

- 2018-06: $3.23 per share

- 2018-07: $3.10 per share

- 2018-08: $2.49 per share

- 2018-09: $2.40 per share

- 2018-10: $1.81 per share

- 2018-11: $1.39 per share

- 2018-12: $1.09 per share

- 2019-01: $2.56 per share

- 2019-02: $3.20 per share

- 2019-03: $3.24 per share

- 2019-04: $3.57 per share

- 2019-05: $3.04 per share

- 2019-06: $3.31 per share

- 2019-07: $3.07 per share

- 2019-08: $2.09 per share

- 2019-09: $2.20 per share

- 2019-10: $1.91 per share

- 2019-11: $1.77 per share

- 2019-12: $2.00 per share

- 2020-01: $1.70 per share

- 2020-02: $1.58 per share

- 2020-03: $0.89 per share

- 2020-04: $0.90 per share

- 2020-05: $0.98 per share

- 2020-06: $1.20 per share

- 2020-07: $1.38 per share

- 2020-08: $2.29 per share

- 2020-09: $2.71 per share

- 2020-10: $2.48 per share

- 2020-11: $2.03 per share

- 2020-12: $2.11 per share

- 2021-01: $1.99 per share

- 2021-02: $2.24 per share

- 2021-03: $1.68 per share

- 2021-04: $1.52 per share

- 2021-05: $2.18 per share

- 2021-06: $1.73 per share

- 2021-07: $1.75 per share

- 2021-08: $1.38 per share

- 2021-09: $1.26 per share

- 2021-10: $1.17 per share

- 2021-11: $0.75 per share

- 2021-12: $1.13 per share

- 2022-01: $0.81 per share

- 2022-02: $1.42 per share

- 2022-03: $1.26 per share

- 2022-04: $1.32 per share

- 2022-05: $1.31 per share

- 2022-06: $0.99 per share

- 2022-07: $1.11 per share

- 2022-08: $0.99 per share

- 2022-09: $1.00 per share

- 2022-10: $1.14 per share

- 2022-11: $1.21 per share

- 2022-12: $1.12 per share

- 2023-01: $1.21 per share

- 2023-02: $1.14 per share

- 2023-03: $0.69 per share

- 2023-04: $0.66 per share

- 2023-05: $0.62 per share

- 2023-06: $0.73 per share

- 2023-07: $0.83 per share

- 2023-08: $0.88 per share

- 2023-09: $4.43 per share

- 2023-10: $4.19 per share

- 2023-11: $3.15 per share

- 2023-12: $3.92 per share

- 2024-01: $3.08 per share

- 2024-02: $2.99 per share

- 2024-03: $3.74 per share

- 2024-04: $3.44 per share

- 2024-05: $4.26 per share

- 2024-06: $4.91 per share

- 2024-07: $4.44 per share

- 2024-08: $4.24 per share

- 2024-09: $4.98 per share

- 2024-10: $4.96 per share

- 2024-11: $8.50 per share

- 2024-12: $9.53 per share

- 2025-01: $9.25 per share

- 2025-02: $8.01 per share

- 2025-03: $8.33 per share

- 2025-04: $6.96 per share

- 2025-05: $14.67 per share

- 2025-06: $14.76 per share

- 2025-07: $12.05 per share

- 2025-08: $12.09 per share

- 2025-09: $14.60 per share

- 2025-10: $17.31 per share

- 2025-11: $14.29 per share

- 2025-12: $17.23 per share

- 2026-01: $17.37 per share

- 2026-02: $15.35 per share

- 2026-03: $16.97 per share

- 2026-04: $16.90 per share

- 2026-05: $19.95 per share

- 2026-06: $23.52 per share

- 2026-07: $23.54 per share

- 2026-08: $23.72 per share

- 2026-09: $29.32 per share

- 2026-10: $24.73 per share

## Annual estimated value (USD per share)

- FY2016: low $29.98 per share, central $34.11 per share, high $39.61 per share

- FY2025: low $3.65 per share, central $4.15 per share, high $4.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/928054/000092805426000020/ftk-20251231.htm); period 2025-12-31, filed 2026-03-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.