Forgent Power Solutions Inc. (FPS) exhibits 36.9% gross margins and 5.4% return on invested capital within Energy (Industrial Machinery/Components), balanced against a 63.3x enterprise multiple and 7.1% implied options volatility.
Sustained 36.9% gross profitability converts into 9.6% operating margin and 5.4% ROIC, outpacing sector cost of capital.
ROIC: 5.4% // GM: 36.9%YoY revenue trajectory of +2.2% paired with -0.45% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +2.2% // FCF YLD: -0.45%Altman Z-Score of 5.62 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 5.62 // F-SCORE: 6/9Trading at 185.0x trailing P/E (140.0x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 185.0x // EV/EBITDA: 63.3xOptions market prices a ±7.1% implied move with a 0.91 put/call ratio around $28.00 max pain.
IMPL MOVE: ±7.1% // P/C: 0.91Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 2.0% net margins.
NET MARGIN: 2.0% // D/E: 0.98x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
Unblur the exact $50,000 delta-adjusted ETF/options hedge ratio for FPS & activate live FRED threshold breach alerts.