MeritValue

FLOTEK INDUSTRIES INC/CN/

FTKdata completeness 88%17 fiscal years on file
The thesis, from the filings

FLOTEK INDUSTRIES INC/CN/ earns about -32% on invested capital, and has bought back 51% of its shares over 5 years. The applicable estimate puts fair value near $3.01 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$39.6M1$136.1M2$188.1M3$187M4$237.3M4
Net income−$30.5M5−$42.3M6$24.7M7$10.5M8$30.5M8
Operating cash flow−$25.8M9−$44.6M10−$11.3M11$3.36M12$7.2M12
Capital expenditure$39,00013$421,00013———
Free cash flow (derived)−$25.9M9−$45.1M10———
Total debt$4.79M14$2.74M15$299,00016$016$40M17
Cash & equivalents$11.5M18$12.3M19$5.85M20$4.4M20$5.73M20
Diluted shares73.4M12.4M28.4M30.9M36.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$31.27
your share of equity
Profit it earned you last year
$8.44
Free cash flow it threw off
—
Debt you’d be carrying
$11.06

10 shares is a claim on $31.27 of net worth that earned you $8.44 last year, against $11.06 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-32% avg · 5y
FY21 -179%FY22 —FY23 29%FY24 10%FY25 13%

It earned an average -32% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−51% shares · 5y

Share count is down 51% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 735% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$3.01
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$10.5M
  • growthAssumed0.0%
Graham Number
$7.69
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000928054-23-000052 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000928054-24-000023 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000928054-25-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0000928054-26-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0000928054-23-000052 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000928054-24-000023 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000928054-25-000017 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0000928054-26-000020 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000928054-23-000052 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000928054-24-000023 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000928054-25-000017 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0000928054-26-000020 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0000928054-23-000052 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2021-12-31 · accession 0000928054-23-000052 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2022-12-31 · accession 0000928054-24-000023 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2023-12-31 · accession 0000928054-25-000017 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2025-12-31 · accession 0000928054-26-000020 (LongTermDebt)
  18. 10-K · period ending 2021-12-31 · accession 0000928054-24-000023 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0000928054-25-000017 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0000928054-26-000020 (CashAndCashEquivalentsAtCarryingValue)