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 scores excellent on profitability, 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
FLS had positive earnings in the past year.
FLS had a positive operating cash flow in the past year.
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'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.
Looking at the Return On Invested Capital, with a value of 11.00%, FLS is in the better half of the industry, outperforming 76.52% 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 10.22%.
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
With a decent Profit Margin value of 9.66%, FLS is doing good in 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.
Looking at the Operating Margin, with a value of 11.96%, FLS is in the better half of the industry, outperforming 60.61% 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.
With a Gross Margin value of 33.72%, FLS perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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
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.
FLS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FLS is higher compared to a year ago.
2.2 Solvency
FLS has an Altman-Z score of 4.03. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FLS (4.03) is better than 65.15% 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.
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.
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: 62.12% 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 | 4.03 |
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.
With a Current ratio value of 2.10, FLS perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
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 66.67% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 3.19% in the past 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.
The Revenue is expected to grow by 4.02% on average over the next years.
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
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
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 the industry average as 68.18% of the companies are valued more expensively.
FLS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
FLS is valuated rather expensively with a Price/Forward Earnings ratio of 18.36.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than 69.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FLS to the average of the S&P500 Index (23.88), we can say FLS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
60.61% of the companies in the same industry are more expensive than FLS, based on the Enterprise Value to EBITDA ratio.
86.36% 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 | 14.85 | ||
| EV/EBITDA | 14.89 |
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 18.20% 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 1.17%, FLS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.81, FLS pays a bit more dividend than its industry peers.
FLS's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
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 | 1.17% |
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
WACC9.58%
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.