Forgent Power Solutions FPS
United StatesIndustrials · Electrical Equipment & PartsUSD
55.75 USD (+37.1%)
12 analysts
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Forgent Power Solutions, Inc. is an industrial company that designs and manufactures electrical equipment and components, likely for the power generation, transmission, and distribution sectors, as well as industrial applications.
Key points
from its scores- ✓Strong growth10.0
- ✕Demanding valuation1.2
- ✕Little or no dividend1.5
- ✕Poor share-price trend1.8
AI analysis
bottom line, main risk, context and newsHold only for investors with high risk tolerance and a long-term horizon; the current valuation offers no margin of safety and cash generation is a critical weak point to monitor.
Forgent Power Solutions shows explosive revenue growth of 94.30% and a return on invested capital (ROIC) of 20.20%, but its valuation is extremely demanding (P/E 135.5x) and its free cash flow conversion is negative (-35.11%), creating a high risk that growth will not translate into shareholder value.
The main risk is the combination of an extreme valuation (P/E 135.5x) with negative free cash flow conversion (-35.11%), leaving a very narrow margin of error: any disappointment in future growth could trigger a severe correction in the stock price.
Context and risks
No recent news and no material exposure to current macro factors (rates, oil, shipping routes) that directly affect its electrical equipment business. The rise in long-term rates could pressure the valuation of long-duration assets, but its net debt/EBITDA of 2.43x and operating margin of 19.86% provide a financial cushion that mitigates this risk.
Is Forgent Power Solutions stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 331% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 135.5 | 25.4 | +433% |
| EV / EBITDA | 47.6 | 14.5 | +229% |
| Price / book | 18.7 | 4.1 | +362% |
| Price / sales | 9.1 | 2.1 | +344% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 1.2 out of 10 (median for Industrials: 5.0).
Average analyst target: 55.75 USD, +37.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.4 (sector 5.8), Growth 10.0 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 135.5
- Forward P/E
- 20.2
- EV / EBITDA
- 47.6
- Price / book
- 18.7
- Price / sales
- 9.1
- PEG
- 0.39
- Market cap
- 13.0B USD
- Enterprise value
- 11.9B USD
Profitability
- ROE
- 17.0%
- ROA
- 6.0%
- ROIC (approx.)
- 20.2%
- Gross margin
- 35.0%
- Operating margin
- 19.9%
- Net margin
- 5.8%
- Free cash flow
- −87.5M USD
- FCF yield
- −0.7%
- Cash conversion
- −35%
Solvency
- Total debt
- 703.8M USD
- Net debt
- 606.3M USD
- Cash
- 97.5M USD
- EBITDA
- 249.2M USD
- Net debt / EBITDA
- 2.43
- Debt / equity
- 104.82
- Current ratio
- 1.54
- Quick ratio
- 0.84
Growth
- Revenue growth
- +94.3%
- EPS (TTM)
- 0.30 USD
- EPS (forward)
- 2.01 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Analyst consensus
- Strong buy (12)
- Target price
- 55.75 USD
- 52-week range
- 25.95 – 66.00
Recent news
All FPS news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Forgent Power Solutions
Is Forgent Power Solutions stock cheap or expensive?
On P/E and EV / EBITDA, it trades 331% above the Industrials median on average. Valuation score: 1.2 out of 10 (median for Industrials: 5.0). Average analyst target: 55.75 USD, +37.1% versus the price. This is not investment advice.
What score does Forgent Power Solutions get on MeridIAn Screener?
It scores 4.3 out of 10, rank 1,918 of 2,130 (better than 9% of the companies analysed). Its strongest category is Growth (10.0) and its weakest, Valuation (1.2). Analysis of 08/10/2026.
What is Forgent Power Solutions's P/E ratio?
Its P/E is 135.5: the share price equals 135.5 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 20.2.
How much is Forgent Power Solutions worth on the stock market?
Its market capitalisation is 13.0B USD and its enterprise value, debt included, is 11.9B USD.
How much debt does Forgent Power Solutions have?
Its net debt (debt minus cash) is 606.3M USD. That is 2.43 times its EBITDA; the Industrials median is 1.58.
Does Forgent Power Solutions pay a dividend?
It pays no dividend, or almost none.
How has Forgent Power Solutions stock performed over the last year?
It has risen 20.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 25.95 and 66.00 USD. Past performance does not guarantee future results.
What do analysts think of Forgent Power Solutions?
12 analysts cover it; their average recommendation is “Strong buy” and their average target is 55.75 USD (+37.1% versus the price). It is an estimate, not market data.