📊 FPS Key Takeaways
Is Forgent Power Solutions, Inc. (FPS) a Good Investment?
Forgent Power Solutions exhibits concerning fundamental weakness driven by deeply negative free cash flow (-$49.4M) despite positive operating cash flow, indicating unsustainable capital expenditure relative to earnings generation. Combined with anemic profitability (3.0% net margin, 6.4% ROE), weak interest coverage of 2.0x, and high leverage (1.31x D/E), the company faces material solvency risk if cash burn persists.
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.
Forgent Power Solutions, Inc. Key Strengths (FPS)
- Substantial revenue base of $958.4M with reasonable gross margins of 34.5%
- Acceptable short-term liquidity with current ratio of 1.64x and quick ratio of 1.16x
- Positive operating cash flow of $35.2M demonstrates some underlying business cash generation
- 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
- Negative free cash flow of -$49.4M is unsustainable; company is burning cash despite OCF positive
- Critically weak profitability: net margin 3.0%, ROE 6.4%, ROA 1.5% indicate poor capital efficiency
- Tight interest coverage ratio of 2.0x with $584.1M long-term debt creates refinancing and default risk
- Capital intensity mismatch: $84.6M CapEx exceeds OCF, generating minimal returns on invested capital
- 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 trajectory and sustainability of capital expenditure levels
- Interest Coverage Ratio and debt service capacity
- Net Profit Margin expansion or contraction
- 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 |
|---|---|---|---|
| Q3 2026 | $186.2M | $6.9M | N/A |
| 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 Grade of C from Claude (C) and ChatGPT (C) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FPS's key strengths?
Claude: Substantial revenue base of $958.4M with reasonable gross margins of 34.5%. Acceptable short-term liquidity with current ratio of 1.64x and quick ratio of 1.16x. 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: Negative free cash flow of -$49.4M is unsustainable; company is burning cash despite OCF positive. Critically weak profitability: net margin 3.0%, ROE 6.4%, ROA 1.5% indicate poor capital efficiency. 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 $958.4M.
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 grade reflects both perspectives for balanced insights.
What is FPS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Forgent Power Solutions, Inc. has a C grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FPS stock overvalued or undervalued?
Valuation metrics for FPS: ROE of 6.4% (sector avg: 10%), net margin of 3.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FPS's AI grade for 2026?
Our dual AI analysis gives Forgent Power Solutions, Inc. a combined C grade 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 $35.2M, with capital expenditures of $84.6M. FCF margin is -5.2%.
How does FPS compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 3.0% (avg: 12%), ROE 6.4% (avg: 10%), current ratio 1.64 (avg: 0.8).