FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
73.47 USD
+1.73 (+2.41%)
73.47 USD
0 (0%)
Overall FLS gets a fundamental rating of 6 out of 10. We evaluated FLS against 132 industry peers in the Machinery industry. FLS has an excellent profitability rating, but there are some minor concerns on its financial health. FLS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLS was profitable.
In the past year FLS had a positive cash flow from operations.
FLS had positive earnings in each of the past 5 years.
Of the past 5 years FLS 4 years had a positive operating cash flow.
1.2 Ratios
FLS has a Return On Assets of 7.77%. This is in the better half of the industry: FLS outperforms 73.48% of its industry peers.
With an excellent Return On Equity value of 20.00%, FLS belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
FLS has a better Return On Invested Capital (11.00%) than 76.52% 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 10.22%.
The last Return On Invested Capital (11.00%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| 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
The Profit Margin of FLS (9.66%) is better than 71.21% of its industry peers.
In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
The Operating Margin of FLS (11.96%) is better than 60.61% of its industry peers.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
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
FLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FLS has about the same amount of shares outstanding.
Compared to 5 years ago, FLS has more shares outstanding
The debt/assets ratio for FLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.03 indicates that FLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLS (4.03) is better than 65.15% 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.
FLS's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. FLS outperforms 73.48% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
FLS has a worse Debt to Equity ratio (0.63) than 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 | 4.03 |
ROIC/WACC1.15
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
FLS has a Current ratio of 2.10. This is comparable to the rest of the industry: FLS outperforms 53.03% of its industry peers.
A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.54, FLS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.52%, which is quite impressive.
FLS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.18% yearly.
The Revenue has been growing slightly by 3.19% in the past year.
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
Based on estimates for the next years, FLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.45% on average per year.
FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.45%
Revenue Next Year4.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.13%
Revenue Next 5Y4.02%
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
The Price/Earnings ratio is 22.75, which indicates a rather expensive current valuation of FLS.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than 68.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. FLS is around the same levels.
A Price/Forward Earnings ratio of 18.36 indicates a rather expensive valuation of FLS.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
FLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLS is cheaper than 60.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FLS is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.85 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FLS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FLS's earnings are expected to grow with 18.20% in the coming years.
PEG (NY)0.76
PEG (5Y)5.44
EPS Next 2Y21.75%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, FLS has a reasonable but not impressive dividend return.
FLS's Dividend Yield is a higher than the industry average which is at 0.85.
Compared to the average S&P500 Dividend Yield of 1.94, FLS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
The dividend of FLS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.35%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
73.47
+1.73 (+2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change-14.56%
Market Cap9.34B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target79.76 (8.56%)
Short Float %2.95%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP24.35%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.44%
Min EPS beat(2)12%
Max EPS beat(2)14.88%
EPS beat(4)3
Avg EPS beat(4)8.86%
Min EPS beat(4)-9.88%
Max EPS beat(4)18.43%
EPS beat(8)7
Avg EPS beat(8)10.82%
EPS beat(12)11
Avg EPS beat(12)17.11%
EPS beat(16)12
Avg EPS beat(16)5.38%
Revenue beat(2)0
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)-3.58%
Revenue beat(4)1
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)2.1%
Revenue beat(8)4
Avg Revenue beat(8)-0.34%
Revenue beat(12)8
Avg Revenue beat(12)1.82%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)1.82%
PT rev (3m)17.59%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 18.36 | ||
| P/S | 1.99 | ||
| P/FCF | 14.85 | ||
| P/OCF | 13.28 | ||
| P/B | 4.12 | ||
| P/tB | 12.57 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)3.23
EY4.4%
EPS(NY)4
Fwd EY5.45%
FCF(TTM)4.95
FCFY6.74%
OCF(TTM)5.53
OCFY7.53%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.76
PEG (5Y)5.44
Graham Number35.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 20% | ||
| ROCE | 12.96% | ||
| ROIC | 11% | ||
| ROICexc | 13.63% | ||
| ROICexgc | 24.14% | ||
| OM | 11.96% | ||
| PM (TTM) | 9.66% | ||
| GM | 33.72% | ||
| FCFM | 13.42% |
ROA(3y)4.24%
ROA(5y)3.51%
ROE(3y)11.36%
ROE(5y)9.55%
ROIC(3y)8.33%
ROIC(5y)7.79%
ROICexc(3y)9.82%
ROICexc(5y)9.51%
ROICexgc(3y)17.16%
ROICexgc(5y)16.91%
ROCE(3y)9.81%
ROCE(5y)9.18%
ROICexgc growth 3Y15.64%
ROICexgc growth 5Y2.31%
ROICexc growth 3Y16.8%
ROICexc growth 5Y2.19%
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%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 78.26% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.26% | ||
| Profit Quality | 138.92% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 4.03 |
F-Score7
WACC9.57%
ROIC/WACC1.15
Cap/Depr(3y)86.32%
Cap/Depr(5y)74.19%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.52%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%30.43%
EPS Next Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.13%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year43.44%
EBIT Next 3Y19.03%
EBIT Next 5Y14.73%
FCF growth 1Y413.01%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y250.63%
OCF growth 3Y19.36%
OCF growth 5Y5.59%
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 6 / 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 22.75 and the Price/Book (PB) ratio is 4.12.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.