Flowco Holdings Inc. (NYSE: FLOC)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0002035149
Market Cap 180.73 Mn
P/B 0.49
P/E 2.07
P/S 0.33
ROIC (Qtr) 26.53
Div Yield % 0.00
Rev 1y % (Qtr) -6.56
Total Debt (Qtr) 264.69 Mn
Debt/Equity (Qtr) 0.71
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1.16B provides 4.36x coverage of total debt 264.69M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.16B provide exceptional 92.14x coverage of deferred revenue 12.54M, showing strong service capability backing.
  • Retained earnings of 315.41M provide full 1.29x coverage of long-term debt 244.22M, indicating strong internal capital position.
  • Robust tangible asset base of 1.16B provides 6.01x coverage of working capital 192.23M, indicating strong operational backing.
  • Retained earnings of 315.41M provide strong 6.55x coverage of other current liabilities 48.13M, indicating earnings quality.

Bear case

  • With cash reserves of 7.24M against inventory of 159.29M, the 0.05 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 12.54M, which is 0x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 0 provides minimal -0x coverage of tax expenses of (1.32M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Cash position of 7.24M provides weak coverage of payables of 32.33M, which is 0.22x, indicating potential working capital stress and supplier relationship risks.
  • Operating cash flow of 0 barely covers operating expenses of 110.98M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.23 1.17
EV to Cash from Ops. EV/CFO 2.12 -3.30
EV to Debt EV to Debt 1.44 10.99
EV to EBIT EV/EBIT 3.36 4.49
EV to EBITDA EV/EBITDA 1.82 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 4.28 31.31
EV to Market Cap EV to Market Cap 2.11 1.36
EV to Revenue EV/Rev 0.69 2.02
Price to Book Value [P/B] P/B 0.49 1.73
Price to Earnings [P/E] P/E 2.07 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.49
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.68
Interest Coverage Int. cover (Qtr) 4.16 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -68.71 1,334.16
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 39.97
EPS Growth (1y) % EPS Growth (1y) % 0.00 27.30
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.07 0.62
Current Ratio Curr Ratio (Qtr) 2.91 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.71 0.88
Interest Cover Ratio Int Coverage (Qtr) 4.16 -10.19
Times Interest Earned Times Interest Earned (Qtr) 4.16 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 16.47
EBIT Margin % EBIT Margin % (Qtr) 20.60 -0.62
EBT Margin % EBT Margin % (Qtr) 15.65 4.39
Gross Margin % Gross Margin % (Qtr) 55.10 30.41
Net Profit Margin % Net Margin % (Qtr) 15.90 2.67