FTKFlotek Industries, Inc.
Is the business good?
The checks split: margins widening, but profits without cash flow.
Reports an operating profit but operating cash flow is negative, a red flag. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 28% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FTK?
Flotek Industries, Inc. earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 9.0 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Oil & Gas Equipment & Services median 10% · 12 months to Q2 2026
- Cash conversion
- −0.07×
Cash conversion · 0.35× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +6.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −270% |
| FY2021 | −73% |
| FY2022 | −26% |
| FY2023 | 12% |
| FY2024 | 6.5% |
| FY2025 | 9.8% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 13%
- R&D as % of revenue
- 0.65%
- Revenue, trailing twelve months
- $293M
- Net income, trailing twelve months
- $38M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Equipment & Services
Ranks #24 of 29 by RyuScore