FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
71.06 USD
+1.44 (+2.07%)
71.06 USD
0 (0%)
FLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While FLS has a great profitability rating, 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
In the past year FLS was profitable.
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 has a better Return On Assets (7.77%) than 72.31% of its industry peers.
Looking at the Return On Equity, with a value of 20.00%, FLS belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.00%, FLS is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
FLS had an Average Return On Invested Capital over the past 3 years of 8.33%. This is in line with the industry average of 10.32%.
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
FLS has a better Profit Margin (9.66%) than 70.77% 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 60.77% of its industry peers.
FLS's Operating Margin has been stable in the last couple of years.
FLS has a Gross Margin of 33.72%. This is comparable to the rest of the industry: FLS outperforms 58.46% of its industry peers.
In the last couple of years the Gross Margin of FLS has remained more or less at the same level.
| 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
Compared to 1 year ago, FLS has a worse debt to assets ratio.
2.2 Solvency
FLS has an Altman-Z score of 3.99. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FLS (3.99) is better than 66.15% 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 73.08% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, FLS is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
Although FLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.99 |
ROIC/WACC1.16
WACC9.51%
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.
FLS has a Current ratio (2.10) which 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 Quick ratio of 1.54. This is in the better half of the industry: FLS outperforms 66.15% 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.
FLS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.18% yearly.
Looking at the last year, FLS shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
Measured over the past years, FLS shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
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
The Earnings Per Share is expected to grow by 14.45% on average over the next years. This is quite good.
FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y30.01%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
EPS Next 5Y14.45%
Revenue Next Year4.12%
Revenue Next 2Y4.08%
Revenue Next 3Y4.26%
Revenue Next 5Y4.02%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FLS is valuated rather expensively with a Price/Earnings ratio of 22.00.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.38. FLS is around the same levels.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of FLS.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 66.92% of the companies are valued more expensively.
FLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA is on the same level as the industry average.
FLS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLS is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 14.48 |
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 18.08% in the coming years.
PEG (NY)0.73
PEG (5Y)5.26
EPS Next 2Y21.56%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.14%.
FLS's Dividend Yield is a higher than the industry average which is at 1.00.
Compared to the average S&P500 Dividend Yield of 1.87, FLS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of FLS has a limited annual growth rate of 2.02%.
FLS has paid a dividend for at least 10 years, which is 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
FLS pays out 24.35% of its income as dividend. This is a sustainable payout ratio.
FLS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.35%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
71.06
+1.44 (+2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-4.06%
Ins Owners0.49%
Ins Owner Change-14.52%
Market Cap9.03B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target78.34 (10.24%)
Short Float %3.41%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP24.35%
Div Incr Years1
Div Non Decr Years4
Ex-Date
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)15.49%
PT rev (3m)15.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.12%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 17.81 | ||
| P/S | 1.93 | ||
| P/FCF | 14.36 | ||
| P/OCF | 12.84 | ||
| P/B | 3.99 | ||
| P/tB | 12.15 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)3.23
EY4.55%
EPS(NY)3.99
Fwd EY5.61%
FCF(TTM)4.95
FCFY6.96%
OCF(TTM)5.53
OCFY7.79%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.73
PEG (5Y)5.26
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 | 3.99 |
F-Score7
WACC9.51%
ROIC/WACC1.16
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 Y30.01%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
EPS Next 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.12%
Revenue Next 2Y4.08%
Revenue Next 3Y4.26%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year43.44%
EBIT Next 3Y18.94%
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 of FLOWSERVE CORP (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.
Can you provide the PE and PB ratios for FLS stock?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 22 and the Price/Book (PB) ratio is 3.99.
What is the earnings growth outlook for FLOWSERVE CORP?
The Earnings per Share (EPS) of FLOWSERVE CORP (FLS) is expected to grow by 30.01% in the next year.