📊 FPS Key Takeaways
Is Forgent Power Solutions, Inc. (FPS) a Good Investment?
Forgent Power Solutions exhibits deteriorating operational quality with profitability substantially pressured by high leverage and negative free cash flow generation. While the company maintains adequate liquidity and gross margins, the combination of extremely low net margins (1.8%), negative FCF (-$50.4M), and weak interest coverage (1.5x) indicates financial stress that limits near-term recovery prospects.
Forgent Power Solutions shows a viable operating business with solid gross margin and acceptable near-term liquidity, but weak net profitability and poor cash conversion materially reduce fundamental quality. Heavy capital spending, negative free cash flow, and thin interest coverage suggest the balance sheet has limited flexibility unless earnings and operating cash flow improve meaningfully.
Why Buy Forgent Power Solutions, Inc. Stock? FPS Key Strengths
- Solid gross margin of 34.5% indicates pricing power and operational efficiency at production level
- Adequate liquidity position with current ratio of 1.66x and $106.2M cash buffer
- Established revenue base of $579.7M in industrial electrical apparatus sector with consistent market presence
- Solid 34.5% gross margin indicates pricing power or favorable product economics
- Positive operating income and 8.8% operating margin show the core business is profitable before financing and below-the-line costs
- Current ratio of 1.66x and quick ratio of 1.20x suggest adequate near-term liquidity
FPS Stock Risks: Forgent Power Solutions, Inc. Investment Risks
- Severely negative free cash flow (-$50.4M or -8.7% of revenue) indicates inability to self-fund operations and capex, creating refinancing risk
- Critically low net margin of 1.8% suggests operational leverage is working against profitability; minimal earnings buffer for downturns
- Weak interest coverage ratio of 1.5x with $583.5M long-term debt indicates limited debt service capacity; high leverage relative to earnings generation
- Operating cash flow of $6.0M barely covers minimum requirements while capex of $56.4M suggests ongoing capital intensity without cash generation
- Net margin of just 1.8% leaves little cushion against cost inflation, execution issues, or demand weakness
- Free cash flow of -$50.36M and operating cash flow of only $6.01M indicate weak earnings quality and poor cash conversion
- Long-term debt of $583.51M with interest coverage of 1.5x creates elevated financial risk
Key Metrics to Watch
- Free cash flow trend and path to positive conversion
- Interest coverage ratio and debt refinancing timeline
- Operating margin expansion and gross profit growth
- Operating cash flow improvement independent of working capital movements
- Operating cash flow and free cash flow improvement
- Interest coverage and debt reduction progress
Forgent Power Solutions, Inc. (FPS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Forgent Power Solutions, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FPS Profit Margin, ROE & Profitability Analysis
FPS vs Utilities Sector: How Forgent Power Solutions, Inc. Compares
How Forgent Power Solutions, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Forgent Power Solutions, Inc. Stock Overvalued? FPS Valuation Analysis 2026
Based on fundamental analysis, Forgent Power Solutions, Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Forgent Power Solutions, Inc. Balance Sheet: FPS Debt, Cash & Liquidity
FPS Revenue Growth, EPS Growth & YoY Performance
FPS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $175.3M | $246.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Forgent Power Solutions, Inc. Dividends, Buybacks & Capital Allocation
FPS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Forgent Power Solutions, Inc. (CIK: 0002080126)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FPS
What is the AI rating for FPS?
Forgent Power Solutions, Inc. (FPS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FPS's key strengths?
Claude: Solid gross margin of 34.5% indicates pricing power and operational efficiency at production level. Adequate liquidity position with current ratio of 1.66x and $106.2M cash buffer. ChatGPT: Solid 34.5% gross margin indicates pricing power or favorable product economics. Positive operating income and 8.8% operating margin show the core business is profitable before financing and below-the-line costs.
What are the risks of investing in FPS?
Claude: Severely negative free cash flow (-$50.4M or -8.7% of revenue) indicates inability to self-fund operations and capex, creating refinancing risk. Critically low net margin of 1.8% suggests operational leverage is working against profitability; minimal earnings buffer for downturns. ChatGPT: Net margin of just 1.8% leaves little cushion against cost inflation, execution issues, or demand weakness. Free cash flow of -$50.36M and operating cash flow of only $6.01M indicate weak earnings quality and poor cash conversion.
What is FPS's revenue and growth?
Forgent Power Solutions, Inc. reported revenue of $579.7M.
Does FPS pay dividends?
Forgent Power Solutions, Inc. does not currently pay dividends.
Where can I find FPS SEC filings?
Official SEC filings for Forgent Power Solutions, Inc. (CIK: 0002080126) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FPS's EPS?
Forgent Power Solutions, Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FPS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Forgent Power Solutions, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FPS stock overvalued or undervalued?
Valuation metrics for FPS: ROE of N/A (sector avg: 10%), net margin of 1.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FPS stock in 2026?
Our dual AI analysis gives Forgent Power Solutions, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FPS's free cash flow?
Forgent Power Solutions, Inc.'s operating cash flow is $6.0M, with capital expenditures of $56.4M. FCF margin is -8.7%.
How does FPS compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 1.8% (avg: 12%), ROE N/A (avg: 10%), current ratio 1.66 (avg: 0.8).