Fervo Energy Company (FRVO) exhibits 41.0% gross margins and 38.5% return on invested capital within Utilities (Electric Utilities: Central), balanced against a 17.9x enterprise multiple and 5.6% implied options volatility.
Sustained 41.0% gross profitability converts into 13.9% operating margin and 38.5% ROIC, outpacing sector cost of capital.
ROIC: 38.5% // GM: 41.0%YoY revenue trajectory of +4.4% paired with 2.21% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +4.4% // FCF YLD: 2.21%Altman Z-Score of 4.72 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.72 // F-SCORE: 8/9Trading at 32.8x trailing P/E (30.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 32.8x // EV/EBITDA: 17.9xOptions market prices a ±5.6% implied move with a 0.40 put/call ratio around $9.00 max pain.
IMPL MOVE: ±5.6% // P/C: 0.40Elevated industry capital intensity and customer concentration in Electric Utilities: Central require continuous execution to defend 10.9% net margins.
NET MARGIN: 10.9% // D/E: 0.85x| 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> | ||
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