FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:FLS • US34354P1057
79.22 USD
+1.07 (+1.37%)
Last: Feb 2, 2026, 02:39 PM
Taking everything into account, FLS scores 6 out of 10 in our fundamental rating. FLS was compared to 132 industry peers in the Machinery industry. FLS scores excellent on profitability, but there are some minor concerns on its financial health. FLS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- FLS had positive earnings in the past year.
- FLS had a positive operating cash flow in the past year.
- In the past 5 years FLS has always been profitable.
- FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- FLS's Return On Assets of 7.77% is fine compared to the rest of the industry. FLS outperforms 73.48% of its industry peers.
- FLS has a better Return On Equity (20.00%) than 87.88% of its industry peers.
- FLS has a better Return On Invested Capital (11.00%) than 77.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FLS is in line with the industry average of 10.18%.
- The 3 year average ROIC (8.33%) for FLS is below the current ROIC(11.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 20% | ||
| ROIC | 11% |
ROA(3y)4.24%
ROA(5y)3.51%
ROE(3y)11.36%
ROE(5y)9.55%
ROIC(3y)8.33%
ROIC(5y)7.79%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.66%, FLS is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
- FLS's Profit Margin has been stable in the last couple of years.
- FLS has a better Operating Margin (11.96%) than 60.61% of its industry peers.
- FLS's Operating Margin has been stable in the last couple of years.
- FLS's Gross Margin of 33.72% is in line compared to the rest of the industry. FLS outperforms 58.33% of its industry peers.
- FLS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.96% | ||
| PM (TTM) | 9.66% | ||
| GM | 33.72% |
OM growth 3Y11.99%
OM growth 5Y0.53%
PM growth 3Y20.37%
PM growth 5Y0.47%
GM growth 3Y2.21%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLS is creating some value.
- The number of shares outstanding for FLS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, FLS has more shares outstanding
- FLS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.17 indicates that FLS is not in any danger for bankruptcy at the moment.
- FLS has a better Altman-Z score (4.17) than 66.67% of its industry peers.
- FLS has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as FLS would need 2.36 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.36, FLS is doing good in the industry, outperforming 73.48% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
- FLS has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: FLS underperforms 62.12% of its industry peers.
- Even though the debt/equity ratio score it not favorable for FLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.15
WACC9.58%
2.3 Liquidity
- FLS has a Current Ratio of 2.10. This indicates that FLS is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of FLS (2.10) is comparable to the rest of the industry.
- A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
- FLS has a better Quick ratio (1.54) than 67.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.52% over the past year.
- Measured over the past 5 years, FLS shows a small growth in Earnings Per Share. The EPS has been growing by 4.18% on average per year.
- FLS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
- FLS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)20.52%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%30.43%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
3.2 Future
- FLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.36% yearly.
- FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y29.51%
EPS Next 2Y22.04%
EPS Next 3Y18.18%
EPS Next 5Y14.36%
Revenue Next Year4.04%
Revenue Next 2Y4.02%
Revenue Next 3Y4.06%
Revenue Next 5Y3.96%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.53, FLS is valued on the expensive side.
- 62.12% of the companies in the same industry are more expensive than FLS, based on the Price/Earnings ratio.
- FLS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 19.70, which indicates a rather expensive current valuation of FLS.
- 62.12% of the companies in the same industry are more expensive than FLS, based on the Price/Forward Earnings ratio.
- FLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
- 83.33% of the companies in the same industry are more expensive than FLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 16.14 |
4.3 Compensation for Growth
- FLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of FLS may justify a higher PE ratio.
- A more expensive valuation may be justified as FLS's earnings are expected to grow with 18.18% in the coming years.
PEG (NY)0.83
PEG (5Y)5.87
EPS Next 2Y22.04%
EPS Next 3Y18.18%
5. Dividend
5.1 Amount
- FLS has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.01, FLS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.07, FLS pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
- The dividend of FLS has a limited annual growth rate of 2.02%.
- FLS has been paying a dividend for at least 10 years, so it has a reliable track record.
- FLS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.02%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 24.35% of the earnings are spent on dividend by FLS. This is a low number and sustainable payout ratio.
- FLS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.35%
EPS Next 2Y22.04%
EPS Next 3Y18.18%
FLOWSERVE CORP / FLS FAQ
What is the ChartMill fundamental rating of FLOWSERVE CORP (FLS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to FLS.
What is the valuation status for FLS stock?
ChartMill assigns a valuation rating of 5 / 10 to FLOWSERVE CORP (FLS). This can be considered as Fairly Valued.
How profitable is FLOWSERVE CORP (FLS) stock?
FLOWSERVE CORP (FLS) has a profitability rating of 7 / 10.
What is the valuation of FLOWSERVE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 24.53 and the Price/Book (PB) ratio is 4.45.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.