FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
71.35 USD
+0.79 (+1.12%)
71.35 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. FLS has an average financial health and profitability rating. FLS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FLS had positive earnings in the past year.
In the past year FLS had a positive cash flow from operations.
In the past 5 years FLS has always been profitable.
Of the past 5 years FLS 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.77%, FLS is doing good in the industry, outperforming 74.62% of the companies in the same industry.
FLS's Return On Equity of 20.00% is amongst the best of the industry. FLS outperforms 86.92% of its industry peers.
FLS's Return On Invested Capital of 11.00% is fine compared to the rest of the industry. FLS outperforms 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLS is below the industry average of 10.35%.
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
FLS's Profit Margin of 9.66% is fine compared to the rest of the industry. FLS outperforms 72.31% of its industry peers.
FLS's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 11.96%, FLS is doing good in the industry, outperforming 60.77% of the companies in the same industry.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
FLS has a Gross Margin (33.72%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLS is still creating some value.
FLS has about the same amout of shares outstanding than it did 1 year ago.
FLS has more shares outstanding than it did 5 years ago.
FLS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.05 indicates that FLS is not in any danger for bankruptcy at the moment.
FLS's Altman-Z score of 4.05 is fine compared to the rest of the industry. FLS outperforms 66.92% of its industry peers.
The Debt to FCF ratio of FLS is 2.36, which is a good value as it means it would take FLS, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FLS (2.36) is better than 73.85% of its industry peers.
FLS has a Debt/Equity ratio of 0.63. This is a neutral value indicating 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.
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 | 4.05 |
ROIC/WACC1.19
WACC9.25%
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 in line with its industry peers.
FLS has a Quick Ratio of 1.54. This is a normal value and indicates that FLS is financially healthy and should not expect problems in meeting its short term obligations.
FLS has a Quick ratio of 1.54. This is in the better half of the industry: FLS outperforms 65.38% 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.
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 Y28.57%
EPS Next 2Y20.82%
EPS Next 3Y17.32%
EPS Next 5Y14.45%
Revenue Next Year4.51%
Revenue Next 2Y4.24%
Revenue Next 3Y4.11%
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
With a Price/Earnings ratio of 22.09, FLS is valued on the expensive side.
FLS's Price/Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 60.77% of the companies in the same industry.
FLS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
FLS is valuated rather expensively with a Price/Forward Earnings ratio of 18.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 61.54% of the companies listed in the same industry.
FLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
Based on the Price/Free Cash Flow ratio, FLS is valued cheaper than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 15.06 |
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.
FLS's earnings are expected to grow with 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)5.28
EPS Next 2Y20.82%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, FLS has a reasonable but not impressive dividend return.
FLS's Dividend Yield is a higher than the industry average which is at 1.97.
With a Dividend Yield of 1.27, FLS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 2Y20.82%
EPS Next 3Y17.32%
71.35
+0.79 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.08%
Inst Owner Change-4.07%
Ins Owners0.53%
Ins Owner Change-5.94%
Market Cap9.33B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts85
Price Target78.34 (9.8%)
Short Float %4.32%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)-0.03%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.95%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 18.1 | ||
| P/S | 1.99 | ||
| P/FCF | 14.83 | ||
| P/OCF | 13.27 | ||
| P/B | 4.12 | ||
| P/tB | 12.55 | ||
| EV/EBITDA | 15.06 |
EPS(TTM)3.23
EY4.53%
EPS(NY)3.94
Fwd EY5.52%
FCF(TTM)4.81
FCFY6.74%
OCF(TTM)5.38
OCFY7.54%
SpS35.84
BVpS17.31
TBVpS5.68
PEG (NY)0.77
PEG (5Y)5.28
Graham Number35.47
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 | 4.05 |
F-Score7
WACC9.25%
ROIC/WACC1.19
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 Y28.57%
EPS Next 2Y20.82%
EPS Next 3Y17.32%
EPS Next 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.51%
Revenue Next 2Y4.24%
Revenue Next 3Y4.11%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year40.19%
EBIT Next 3Y17.71%
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 6 / 10.
Can you provide the PE and PB ratios for FLS stock?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 22.09 and the Price/Book (PB) ratio is 4.12.
What is the earnings growth outlook for FLOWSERVE CORP?
The Earnings per Share (EPS) of FLOWSERVE CORP (FLS) is expected to grow by 28.57% in the next year.