FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - NYSE:FLS - US34354P1057 - Common Stock
67.16 USD
-0.84 (-1.24%)
67.16 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 scores excellent on profitability, but there are some minor concerns on its financial health. FLS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLS was profitable.
FLS had a positive operating cash flow in the past year.
Each year in the past 5 years FLS has been profitable.
FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FLS's Return On Assets of 7.77% is fine compared to the rest of the industry. FLS outperforms 73.08% of its industry peers.
With an excellent Return On Equity value of 20.00%, FLS belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for FLS is in line with the industry average of 10.28%.
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 70.77% of its industry peers.
FLS's Profit Margin has been stable in the last couple of years.
FLS's Operating Margin of 11.96% is fine compared to the rest of the industry. FLS outperforms 60.77% of its industry peers.
FLS's Operating Margin has been stable in the last couple of years.
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 4.00. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FLS (4.00) is better than 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 73.08% 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.
FLS has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: FLS underperforms 63.85% of its industry peers.
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 |
ROIC/WACC1.17
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
With a Current ratio value of 2.10, FLS perfoms like the industry average, outperforming 53.08% 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 64.62% 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.
FLS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
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.
Based on estimates for the next years, FLS will show a small growth in Revenue. The Revenue will grow by 4.02% on average per year.
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.
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 20.79, the valuation of FLS can be described as rather expensive.
FLS's Price/Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 62.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. FLS is around the same levels.
FLS is valuated rather expensively with a Price/Forward Earnings ratio of 17.04.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than 62.31% of the companies in the same industry.
FLS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 13.96 | ||
| EV/EBITDA | 14.55 |
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.
FLS's earnings are expected to grow with 17.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)4.97
EPS Next 2Y20.82%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
FLS's Dividend Yield is a higher than the industry average which is at 1.86.
Compared to an average S&P500 Dividend Yield of 2.36, FLS's dividend is way lower than the S&P500 average.
| 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.
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%
67.16
-0.84 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.08%
Inst Owner Change4.2%
Ins Owners0.53%
Ins Owner Change-4.84%
Market Cap8.78B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts85
Price Target67.83 (1%)
Short Float %4.84%
Short Ratio3.47
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)0.29%
EPS NY rev (1m)1.95%
EPS NY rev (3m)6.55%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 17.04 | ||
| P/S | 1.87 | ||
| P/FCF | 13.96 | ||
| P/OCF | 12.49 | ||
| P/B | 3.88 | ||
| P/tB | 11.82 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)3.23
EY4.81%
EPS(NY)3.94
Fwd EY5.87%
FCF(TTM)4.81
FCFY7.16%
OCF(TTM)5.38
OCFY8.01%
SpS35.84
BVpS17.31
TBVpS5.68
PEG (NY)0.73
PEG (5Y)4.97
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 |
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 20.79 and the Price/Book (PB) ratio is 3.88.
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.