Core Viewpoint - The article emphasizes the importance of value investing and highlights Forum Energy Technologies (FET) as a strong candidate for value investors due to its attractive financial metrics and strong earnings outlook [2][7]. Company Analysis - Forum Energy Technologies (FET) has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is among the strongest value stocks currently available [4]. - FET's P/E ratio stands at 7.35, significantly lower than the industry average of 11.41, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated between 6.63 and 49.18 over the past 52 weeks, with a median of 36.35, indicating volatility in its valuation [4]. - FET's P/B ratio is 0.58, which is attractive compared to the industry's average P/B of 0.99, further supporting the notion of undervaluation [5]. - The P/S ratio for FET is 0.23, compared to the industry average of 0.65, reinforcing its status as a potentially undervalued stock [6]. Industry Context - The article discusses the broader trend of value investing, which remains popular across various market conditions, and highlights the metrics used by value investors to identify undervalued companies [2][3].

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks [1] - Value investing remains a favored strategy for identifying strong stocks across various market conditions [2] - The Style Scores system, particularly the "Value" category, helps investors find stocks with high value grades [3] Company Analysis: Forum Energy Technologies (FET) - Forum Energy Technologies holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong investment potential [4] - The stock has a P/E ratio of 9.86, significantly lower than the industry average P/E of 13.83, suggesting it may be undervalued [4] - FET's Forward P/E has fluctuated between 9.86 and 56.81 over the past 52 weeks, with a median of 41.72 [4] - The company has a P/B ratio of 0.77, which is favorable compared to the industry average P/B of 1.20, indicating solid valuation metrics [5] - FET's P/B has ranged from 0.39 to 0.81 in the last 12 months, with a median of 0.48 [5] - Overall, the metrics suggest that Forum Energy Technologies is likely undervalued, making it a strong candidate for value investors [6]

Therefore, the Zacks rating upgrade for Forum Energy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. Most Powerful Force Impacting Stock Prices Investors might want to bet on Forum Energy Technologies (FET) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole deter ...

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors to consider on March 31st Group 1: Kingstone Companies, Inc. (KINS) - Kingstone is a property and casualty insurance company with a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 22.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 8.94, significantly lower than the S&P 500's P/E of 20.18 [1] - Kingstone possesses a Value Score of A [1] Group 2: Forum Energy Technologies, Inc. (FET) - Forum designs, manufactures, and supplies products for the energy industry and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 17.7% over the last 60 days [2] - Forum has a P/E ratio of 10.15, which is comparable to the industry average of 10.20 [2] - The company possesses a Value Score of A [2] Group 3: Northeast Community Bancorp, Inc. (NECB) - Northeast Community Bancorp is the holding company for NorthEast Community Bank and holds a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 4.6% over the last 60 days [3] - The company has a P/E ratio of 7.36, which is lower than the industry average of 9.20 [3] - Northeast Community possesses a Value Score of B [3]

Group 1 - Forum Energy Technologies (FET) is outperforming its peers in the Oils-Energy sector with a year-to-date gain of approximately 32.6%, compared to the sector average gain of about 5.1% [4] - FET is ranked 8 in the Zacks Sector Rank, which evaluates the strength of 16 individual sector groups based on the average Zacks Rank of the stocks within those groups [2] - The Zacks Rank system indicates that FET has a Zacks Rank of 2 (Buy), reflecting a favorable earnings outlook and positive analyst sentiment [3] Group 2 - The Zacks Consensus Estimate for FET's full-year earnings has increased by 17.7% over the past quarter, indicating improved analyst sentiment [4] - FET belongs to the Oil and Gas - Mechanical and Equipment industry, which has gained an average of 3.4% this year, further highlighting FET's strong performance within its industry [6] - Another stock in the Oils-Energy sector, Nextracker (NXT), has also shown strong performance with a year-to-date increase of 23.8% and a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Company Spotlight - Forum Energy Technologies (FET) - FET has shown a price increase of 12.3% over the past four weeks, indicating growing investor interest [4] - The stock has gained 32.6% over the past 12 weeks, with a beta of 2.33, suggesting it moves 133% higher than the market [5] - FET has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - FET is trading at a Price-to-Sales ratio of 0.31, suggesting it is undervalued at 31 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides FET, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Performance - Total revenue for 2024 was $816.4 million, an increase of $77.6 million, or 10.5%, compared to 2023[195] - The Drilling and Completions segment generated $470.8 million in revenue, a decrease of $31.9 million, or 6.3%, from 2023[195] - The Artificial Lift and Downhole segment reported revenue of $345.7 million, an increase of $109.4 million, or 46.3%, compared to 2023[196] - The company experienced a net loss of $135.3 million in 2024, compared to a net loss of $18.9 million in 2023[194] - Segment operating income for the year ended December 31, 2024 was $35.7 million, an increase from $23.8 million in 2023, with an operating margin percentage of 4.4% compared to 3.2% in 2023[197] - Operating income for the Artificial Lift and Downhole segment increased by 54.8% to $48.9 million in 2024[194] Market Conditions - The global drilling rig count decreased by 4.3% in 2024, primarily due to a 12.8% decline in the U.S. rig count[189] - Average West Texas Intermediate (WTI) crude oil price was $76.45 per barrel in 2024, down from $77.58 in 2023[190] - Average Henry Hub natural gas price was $2.19 per Mcf in 2024, compared to $2.53 in 2023[190] Orders and Capital Expenditures - Total inbound orders for 2024 were $780.3 million, an increase from $724.3 million in 2023[192] - The company expects total capital expenditures for 2025 to be approximately $10.0 million, mainly for replacing end-of-life machinery and equipment[210] Cash Flow and Investments - Net cash provided by operating activities was $92.2 million for 2024, significantly higher than $8.2 million in 2023, with improved inventory management contributing to this increase[214] - Net cash used in investing activities was $137.5 million in 2024, primarily for the Variperm acquisition of $150.4 million and capital expenditures of $8.1 million[215] - The company completed the Variperm acquisition for $150.0 million in cash and 2.0 million shares of common stock in January 2024[213] - The company repurchased approximately 105 thousand shares of common stock for $2.0 million following the board's approval of a $75.0 million share repurchase program[212] Tax and Valuation - For the year ended December 31, 2024, the company recognized a tax expense for valuation allowances totaling $25.1 million related to deferred tax assets[234] - The valuation allowance for U.S. deferred tax assets increased by $29.5 million, along with a $6.9 million increase for certain non-U.S. deferred tax assets in the U.K., Singapore, and China[234] - The company released $11.3 million of valuation allowance on deferred tax assets generated from operations in Germany and Saudi Arabia as they were determined no longer required[234] - The company follows the liability method of accounting for income taxes, recognizing deferred tax assets only if they are more likely than not to be realized[234] Impairment and Fair Value - An impairment loss of $119.1 million was recorded on intangible assets within the Coiled Tubing product line in 2024[232] - As of October 1, 2024, the estimated fair value of the reporting unit exceeded its carrying value by approximately 20%[230] - The company performed an annual impairment test for goodwill and concluded no impairment was necessary due to fair value estimates[230] - The company has significant inherent uncertainties and management judgment in estimating the fair value of the reporting unit[230] - Changes in the operating environment, including tax law changes, could impact the determination of tax liabilities for the company[236] Corporate Expenses - Corporate selling, general and administrative expenses increased by $3.7 million to $31.0 million in 2024, mainly due to higher variable compensation costs[199] - Interest expense for the year ended December 31, 2024 was $31.5 million, an increase of $13.2 million compared to 2023, attributed to increased borrowings related to the Variperm acquisition[202] Future Outlook - The company expects long-term energy demand to rise, with hydrocarbons continuing to play a vital role alongside renewable energy sources[183]

Core Insights - Forum Energy Technologies, Inc. (FET) reported Q4 2024 financial results with revenue of $201.0 million, adjusted EBITDA of $22.2 million, and adjusted net income of ($5.9) million, which were in line with revenue expectations but fell short on adjusted EBITDA and net income [1] Financial Performance - Revenue of $201.0 million was consistent with consensus estimates of $201.9 million [1] - Adjusted EBITDA of $22.2 million was below expectations of $24.1 million, resulting in an adjusted EBITDA margin of 11.0% [1] - Adjusted net income of ($5.9) million was lower than the expected $1.0 million due to weaker operating profit margins and the release of a valuation allowance on deferred tax assets in Germany and Saudi Arabia [1] Key Metrics - Free cash flow (FCF) for Q4 2024 was $56.9 million, an increase of $32.4 million sequentially [3] - Revenue from Artificial Lift and Downhole services increased by 6.8% sequentially to $89.9 million [3] - FET initiated a $75.0 million share repurchase program [3]

Financial Data and Key Metrics Changes - Revenue increased by 51% over the last three years, with a 10% growth in 2024 [10][12] - EBITDA grew by 49% in 2024, resulting in a 42% incremental margin and over 300 basis points margin improvement [12] - Free cash flow reached $105 million, the highest since 2015, exceeding guidance by $35 million [28] - Net debt decreased by 30%, improving net leverage from 11 times to just under 1.5 times [11][36] Business Line Data and Key Metrics Changes - Drilling and Completion segment revenue decreased by 10% due to lower US completions activity, with EBITDA down 34% [40] - Artificial Lift and Downhole segment revenue increased by 7%, driven by higher sales of refinery desalting technology and artificial lift products, leading to an 11% EBITDA growth [41] Market Data and Key Metrics Changes - Global drilling and completion activity is expected to decline by 2% to 5% in 2025, with North America forecasted to soften in rig and frac fleet counts [19] - International revenue grew by almost 42%, indicating strong performance outside the US [16] Company Strategy and Development Direction - The company aims to capture profitable market share through a "beat the market" strategy, focusing on differentiated technologies and global footprint [15][18] - Continued investment in energy is anticipated, with a focus on long-term demand growth despite expected transitional challenges in 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be a transitional year due to geopolitical and macroeconomic uncertainties, with a forecasted decline in market activity [18] - The company is monitoring natural gas demand and tariff impacts closely, indicating potential upside if commodity prices rise [21][22] Other Important Information - A $75 million share repurchase program was authorized, reflecting confidence in generating consistent free cash flow [14] - The company has no debt maturities until 2028, with total liquidity of $106 million [36] Q&A Session Summary Question: Inquiry about new product related to mobile power - Management confirmed the introduction of Powertron, a heat exchanger for the power generation market, with strong quotation activity [50] Question: Thoughts on future orders for wireline completion - Management indicated that consumables are being consumed well, with potential spikes in capital-type products expected in the coming quarters [54] Question: Guidance on EBITDA amidst market weakness - Management explained that EBITDA guidance reflects the ability to offset market declines through market share gains [62] Question: Areas for growth in market share - Focus on high-margin product lines such as artificial lift and downhole, with ongoing development of new products [70] Question: Impact of tariffs on Canadian operations - Management noted no current impact from tariffs in Canada, but acknowledged potential future adjustments if tariffs are implemented [81] Question: Plans for returning cash to shareholders - Management emphasized the focus on share repurchases over dividends due to the undervaluation of the company's stock [75] Question: Future acquisition opportunities - Management expressed openness to pursuing acquisitions if they present relative value compared to share buybacks [90]

Financial Performance - Fourth quarter 2024 revenue was $201 million, with a net loss of $104 million, including a non-cash impairment of $119 million[1]. - Full year 2024 revenue reached $816 million, a 10% year-over-year increase, with adjusted EBITDA of $100 million, a 49% increase from 2023[3]. - The net loss for 2024 was $135 million, or $11.00 per diluted share, compared to a net loss of $18.9 million in 2023[17]. - The company reported a net loss of $135.3 million for the year ended December 31, 2024, compared to a net loss of $18.9 million in 2023[21]. - Total revenue for the year ended December 31, 2024, was $816.4 million, an increase from $738.9 million in 2023, representing an increase of approximately 10.5%[25]. - The total EBITDA for the year ended December 31, 2024, was $(43.2) million, compared to $45.2 million in 2023, reflecting a significant decline[25]. - For the three months ended December 31, 2024, the company reported an operating loss of $106.8 million, representing a 53.1% loss margin on revenue[30]. - The net income for the same period was a loss of $88.7 million, compared to a loss of $16.8 million in the prior year, indicating a significant decline in profitability[30]. - Adjusted EBITDA for Q4 2024 was $8.1 million, or 4.0% of revenue, while the adjusted net loss was $5.9 million[30]. Cash Flow and Capital Management - Operating cash flow for 2024 was $92 million, and free cash flow was $105 million, the highest since 2015[1]. - The company expects to allocate 50% of free cash flow to net debt reduction and the remainder to strategic investments, including share repurchases[2]. - Free cash flow before acquisitions for Q4 2024 was $56.9 million, a substantial increase from $8.9 million in Q4 2023[39]. - Free cash flow before acquisitions for the year ended December 31, 2024, was $105.1 million, a significant increase from $1.6 million in 2023[41]. - The company had capital expenditures of $8.1 million for property and equipment in 2024, slightly up from $7.9 million in 2023[21]. - The company’s capital expenditures for property and equipment in Q4 2024 were $(2.4) million, reflecting ongoing investment in operational capabilities[39]. Segment Performance - The Drilling and Completions segment revenue decreased by 10% to $111 million, while the Artificial Lift and Downhole segment revenue increased by 7% to $90 million[5][6]. - Operating income for the Drilling and Completions segment was $17.8 million with an operating margin of 3.8% for the year ended December 31, 2024, compared to $19.4 million and 3.9% in 2023[25]. - The Artificial Lift and Downhole segment reported an operating income of $48.9 million with a margin of 14.1% for the year ended December 31, 2024, up from $31.6 million and 13.4% in 2023[25]. - Revenue from the Drilling segment for the three months ended December 31, 2024, was $35.5 million, accounting for 17.6% of total revenue, compared to $41.6 million and 22.5% in 2023[44]. - The Subsea segment generated $18.6 million in revenue for the three months ended December 31, 2024, a decrease from $27.6 million in 2023, reflecting a decline of 32.5%[44]. - Revenue from the Stimulation and Intervention segment was $31.1 million, representing 15.5% of total revenue, compared to $32.1 million and 17.3% in the previous year[44]. - The Drilling and Completions segment contributed $111.1 million, or 55.3% of total revenue, down from $126.6 million and 68.4% in 2023[44]. - Downhole revenue increased to $51.5 million, representing 25.6% of total revenue, compared to $21.7 million and 11.7% in the same period of 2023[44]. - The Artificial Lift and Downhole segment saw revenue of $89.9 million, a significant increase from $58.6 million in 2023, representing a growth of 53.3%[44]. Market Demand and Strategic Initiatives - The "Beat the Market" strategy led to a 15% market share growth as measured by revenue per global rig[4]. - Total orders for the three months ended December 31, 2024, were $190.0 million, compared to $160.3 million in the same period of 2023, indicating a year-over-year increase of approximately 18.6%[27]. - The book-to-bill ratio for total orders was 0.95 for the three months ended December 31, 2024, compared to 0.87 in the same period of 2023, suggesting improving market demand[27]. - The company highlighted strategic opportunities for future growth, including potential acquisitions and investments in business expansion[30]. Impairments and Losses - The company incurred $119.1 million in impairment of intangible assets during the year ended December 31, 2024[21]. - The company incurred $119.1 million in impairment of intangible assets during the quarter, which heavily impacted the financial results[30]. - The diluted EPS as reported for Q4 2024 was $(8.39), while the adjusted diluted EPS was $(0.48)[30].