FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - NYSE:FLS - US34354P1057 - Common Stock
65.54 USD
-0.08 (-0.12%)
65.54 USD
0 (0%)
Taking everything into account, FLS scores 6 out of 10 in our fundamental rating. FLS was compared to 130 industry peers in the Machinery industry. While FLS has a great profitability rating, 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.
In the past year FLS had a positive cash flow from operations.
Each year in the past 5 years FLS has 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.
The Return On Equity of FLS (20.00%) is better than 86.15% of its industry peers.
FLS has a better Return On Invested Capital (11.00%) than 76.92% of its industry peers.
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 10.24%.
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 71.54% of the companies in the same industry.
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.
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 58.46% of the companies in the same 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.
The number of shares outstanding for FLS has been increased compared to 5 years ago.
FLS has a worse debt/assets ratio than last year.
2.2 Solvency
FLS has an Altman-Z score of 3.94. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
FLS's Altman-Z score of 3.94 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.
Looking at the Debt to FCF ratio, with a value of 2.36, FLS is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
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: 63.85% 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 | 3.94 |
ROIC/WACC1.17
WACC9.41%
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's Current ratio of 2.10 is in line compared to the rest of the industry. FLS outperforms 50.77% of its industry peers.
A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
FLS's Quick ratio of 1.54 is fine compared to the rest of the industry. FLS outperforms 63.85% 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.
The Earnings Per Share has been growing slightly by 4.18% on average over the past years.
Looking at the last year, FLS shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
The Revenue has been growing slightly by 2.96% on average over the past years.
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 14.45% yearly.
The Revenue is expected to grow by 4.02% on average over the next years.
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
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
Based on the Price/Earnings ratio of 20.29, the valuation of FLS can be described as rather expensive.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
FLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 16.63 indicates a correct valuation of FLS.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 63.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FLS to the average of the S&P500 Index (34.98), we can say FLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
FLS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLS is cheaper than 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 14.06 |
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.
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 17.32% in the coming years.
PEG (NY)0.71
PEG (5Y)4.85
EPS Next 2Y20.82%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.24%.
Compared to an average industry Dividend Yield of 1.87, FLS pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.24, FLS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 2Y20.82%
EPS Next 3Y17.32%
65.54
-0.08 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.08%
Inst Owner Change-3.99%
Ins Owners0.53%
Ins Owner Change-9.8%
Market Cap8.57B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts85
Price Target67.83 (3.49%)
Short Float %4.32%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.95%
EPS NY rev (3m)6.55%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 16.63 | ||
| P/S | 1.83 | ||
| P/FCF | 13.63 | ||
| P/OCF | 12.19 | ||
| P/B | 3.79 | ||
| P/tB | 11.53 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)3.23
EY4.93%
EPS(NY)3.94
Fwd EY6.01%
FCF(TTM)4.81
FCFY7.34%
OCF(TTM)5.38
OCFY8.21%
SpS35.84
BVpS17.31
TBVpS5.68
PEG (NY)0.71
PEG (5Y)4.85
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 | 3.94 |
F-Score7
WACC9.41%
ROIC/WACC1.17
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 7 / 10.
Can you provide the PE and PB ratios for FLS stock?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 20.29 and the Price/Book (PB) ratio is 3.79.
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.