| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 89 | 14.2x | 17.8x | Top tier | |
Growth | 43 | 100.0% | 7.1% | Around median | |
Quality | 90 | 28.9% | 4.5% | Top tier | |
Safety | 82 | 1.0x | 2.6x | Top tier | |
Capital Return | 13 | 0.39% | 2.12% | Bottom tier | |
Momentum | 46 | 27.6% | 2.9% | Around median | |
Sentiment | 72 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Flowco Holdings Inc. provides a platform for optimizing oil and gas production in North America through artificial lift solutions, surface equipment, vapor recovery technologies, and downhole components. The company generates revenue from equipment rentals and sales and well lifecycle services; in Q2 fiscal 2026, rental revenue represented 56% of total revenue, supporting revenue visibility, while less asset-intensive sales activities provide additional returns and cash conversion. The platform includes more than 5,000 compressors, along with Valiant's ESP solutions and the Optimus monitoring and optimization software.
In Q2 fiscal 2026, revenue increased 13% sequentially to $236 million, and adjusted earnings before interest, taxes, depreciation, and amortization rose approximately 10% to $93.9 million, representing a margin of approximately 40%. The Production Solutions segment generated revenue of $171 million, up 22%, and segment adjusted earnings of $71 million, up approximately 16%; however, it recorded a 229-basis-point margin decline due to a shift in revenue mix and higher operating and maintenance, fuel, and lubricant costs. The Natural Gas Technology segment recorded a sequential decline of 6% in both revenue and segment adjusted earnings, to approximately $65 million and $28 million, respectively, due to lower Vapor Recovery system sales.
The business generated approximately $50 million in free cash flow in Q2 fiscal 2026, despite investing $45 million to expand the Surface Equipment and Vapor Recovery rental fleets and support Valiant's growth, and the annualized adjusted return on capital employed was approximately 18%. The latest available EDGAR data for Q1 fiscal 2026 showed revenue of $209.5 million, gross profit of $114.6 million, net income of $7.4 million, and earnings per share of $0.23, while the trailing-twelve-month figures ending in fiscal 2026 were revenue of $1.1 billion and net income of $42.7 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $32 and a narrow range between $31 and $33, and the average is approximately 13% above the 52-week range high of $28.26. The August 12, 2026 source indicates a multiple of 6.5x expected fiscal 2026 earnings, versus 8x to 10x for the peers mentioned in it, reflecting a relative discount. However, exceeding the 52-week range high to reach the target valuation requires continued strong cash flow and Valiant's success in offsetting margin pressures and the slower growth of adjusted earnings compared with revenue.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue was $236 million in Q2 fiscal 2026, up 13% sequentially. Adjusted earnings before interest, taxes, depreciation, and amortization were $93.9 million, up approximately 10%, with a margin of approximately 40%. The company also generated $50 million in free cash flow after capital expenditures of $45 million.
The Valiant acquisition added ESP capabilities to Flowco's platform, and the business performed above management's expectations in Q2 fiscal 2026. Valiant historically had a customer base of approximately 30 to 35 customers, compared with more than 300 customers for Flowco, defining a clear cross-selling opportunity. Management said on August 11, 2026 that integration work was largely complete and that the prior guidance of approximately $52 million in adjusted earnings at a margin of approximately 40% was achievable.
Flowco expects adjusted earnings before interest, taxes, depreciation, and amortization of between $92 million and $98 million in Q3 fiscal 2026. This compares with a result of $93.9 million in Q2 fiscal 2026, indicating a range extending from a slight decline to limited growth. Management expects Surface Equipment to be approximately stable and Natural Gas Technology to improve modestly with support from NGS, while fuel, lubricant, and operating and maintenance cost pressures continue.
The Production Solutions segment's adjusted earnings margin declined by 229 basis points in Q2 fiscal 2026. The pressure came from a revenue mix shift toward Downhole Components and from higher operating and maintenance, fuel, and lubricant costs. Flowco operates a fleet of more than 5,000 compressors and has limited ability to pass higher lubricant costs on to customers, while pricing under its primary contract was set 90 days in advance.
Valiant's Optimus platform collects real-time operating data from ESP systems and enables remote monitoring to adjust parameters or anticipate the need for intervention. Flowco is working to apply predictive analytics to determine when wells will fail or transition from ESP to gas lift and then plunger lift. Management explained on August 11, 2026 that fully autonomous operations remain at an early stage in the U.S. onshore market because some customers do not want to remove the human element from operating thousands of wells.
The board declared an estimated quarterly distribution of $0.09 per share on July 30, 2026, then approved a one-time special distribution of $0.14 per Class A share. Management linked the special distribution to cash accumulation resulting from the Up-C structure and the difference between the historical tax distribution rate of 40% and Flowco's tax rate of 22%. Management does not expect similar special distributions in the future, while retaining the option of quarterly distributions and opportunistic share repurchases.
