FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
74.84 USD
+1 (+1.35%)
74.81 USD
-0.03 (-0.04%)
Taking everything into account, FLS scores 6 out of 10 in our fundamental rating. FLS was compared to 132 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
- 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
- FLS has a Return On Assets of 7.77%. This is in the better half of the industry: FLS outperforms 73.48% 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 87.88% of the companies in the same industry.
- FLS has a Return On Invested Capital of 11.00%. This is in the better half of the industry: FLS outperforms 76.52% 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 10.25%.
- 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
- The Profit Margin of FLS (9.66%) is better than 71.21% of its industry peers.
- FLS's Profit Margin has been stable in the last couple of years.
- FLS has a better Operating Margin (11.96%) than 60.61% 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 58.33% 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.
- 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.
- Compared to 1 year ago, FLS has a worse debt to assets ratio.
2.2 Solvency
- FLS has an Altman-Z score of 4.10. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
- FLS has a Altman-Z score of 4.10. This is in the better half of the industry: FLS outperforms 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.
- The Debt to FCF ratio of FLS (2.36) is better than 73.48% 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 worse Debt to Equity ratio (0.63) than 61.36% of its industry peers.
- 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 | 4.1 |
ROIC/WACC1.17
WACC9.39%
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's Quick ratio of 1.54 is fine compared to the rest of the industry. FLS outperforms 67.42% 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.
- FLS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
- 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
- FLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.36% yearly.
- Based on estimates for the next years, FLS will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.36%
Revenue Next Year4.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.13%
Revenue Next 5Y3.96%
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.
- 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
- The Price/Earnings ratio is 23.17, which indicates a rather expensive current valuation of FLS.
- 64.39% of the companies in the same industry are more expensive than FLS, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, FLS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 18.70, the valuation of FLS can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 66.67% 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
- FLS's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, FLS is valued cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 15.5 |
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.
- The decent profitability rating of FLS may justify a higher PE ratio.
- FLS's earnings are expected to grow with 18.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)5.54
EPS Next 2Y21.75%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
- FLS has a Yearly Dividend Yield of 1.17%.
- Compared to an average industry Dividend Yield of 0.80, FLS pays a bit more dividend than its industry peers.
- FLS's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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
- 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 2Y21.75%
EPS Next 3Y18.2%
74.84
+1 (+1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners103.1%
Inst Owner Change0.02%
Ins Owners0.42%
Ins Owner Change-14.56%
Market Cap9.51B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target79.76 (6.57%)
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 | 23.17 | ||
| Fwd PE | 18.7 | ||
| P/S | 2.03 | ||
| P/FCF | 15.12 | ||
| P/OCF | 13.53 | ||
| P/B | 4.2 | ||
| P/tB | 12.8 | ||
| EV/EBITDA | 15.5 |
EPS(TTM)3.23
EY4.32%
EPS(NY)4
Fwd EY5.35%
FCF(TTM)4.95
FCFY6.61%
OCF(TTM)5.53
OCFY7.39%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.77
PEG (5Y)5.54
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 | 4.1 |
F-Score7
WACC9.39%
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 Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.36%
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 5Y3.96%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year43.44%
EBIT Next 3Y19.03%
EBIT Next 5Y14.66%
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 23.17 and the Price/Book (PB) ratio is 4.2.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.