Flotek Story

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FTK -- USA Stock  

USD 1.30  0.14  9.72%

It looks like ION Geophysical will be up for a correction faster as its share price went up 1.26% today to Flotek Industries's 3.9%As many rational traders are trying to avoid energy space, it makes sense to examine Flotek Industries a little further and understand how it stands against ION Geophysical and other similar entities. We are going to concentrate on some of the competitive aspects of both Flotek and ION Geophysical.
Published over a month ago
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Should you quit your ION Geophysical (NYSE:IO) and Flotek Industries (NYSE:FTK) positions after a growth?
By analyzing existing basic indicators between Flotek Industries and ION Geophysical, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ION Geophysical with a short position in Flotek Industries. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Flotek Industries has an asset utilization ratio of 15.02 percent. This signifies that the company is making $0.15 for each dollar of assets. An increasing asset utilization means that Flotek Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Flotek or ION Geophysical is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Flotek Industries's Liquidity

Flotek Industries financial leverage refers to using borrowed capital as a funding source to finance Flotek Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Flotek Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Flotek Industries's total debt and its cash.

Correlation Between Flotek and ION Geophysical Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Flotek Industries together with similar or unrelated positions with a negative correlation. For example, you can also add ION Geophysical to your portfolio. If ION Geophysical is not perfectly correlated to Flotek Industries it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Flotek Industries for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between FTK and IO for more information.

Detailed Perspective On Flotek Industries

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Flotek Industries revenue. Based on the latest financial disclosure, Flotek Industries reported 60.56 M of revenue. This is 99.88% lower than that of the Energy sector and 98.09% lower than that of the Oil & Gas Equipment & Services industry. The revenue for all United States stocks is 99.36% higher than that of the firm. As for ION Geophysical we see revenue of 122.67 M, which is 96.13% lower than that of the Oil & Gas Equipment & Services

Sector
3.2 B
FTK60.56 Million1.81
Sector3.17 Billion94.53
IO122.67 Million3.66

Our perspective of the recent Flotek Industries plunge

Recent downside variance is at 19.07.
As of the 16th of March 2021, Flotek Industries shows the Coefficient Of Variation of 6599.3, mean deviation of 3.31, and Downside Deviation of 4.37. Flotek Industries technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Flotek Industries, which can be compared to its rivals. Please confirm Flotek Industries coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Flotek Industries is priced favorably, providing market reflects its regular price of 2.22 per share. Please also check Flotek Industries total risk alpha, which is currently at (0.60) to verify the company can sustain itself at a future point.

The Bottom Line

Although many of the other players in the oil & gas equipment & services industry are either recovering or due for a correction, Flotek may not be as strong as the others in terms of longer-term growth potentials. While some traders may not share our view we believe it may be a good time to drop Flotek as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Flotek Industries.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Flotek Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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