FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - NYSE:FLS - US34354P1057 - Common Stock
56.26 USD
-0.4 (-0.71%)
56.26 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FLS. FLS was compared to 128 industry peers in the Machinery industry. Both the profitability and the financial health of FLS get a neutral evaluation. Nothing too spectacular is happening here. FLS has a decent growth rate and is not valued too expensively.
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.
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
FLS has a Return On Assets (5.13%) which is in line with its industry peers.
FLS has a better Return On Equity (13.12%) than 67.97% of its industry peers.
The Return On Invested Capital of FLS (10.86%) is better than 76.56% 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 10.02%.
The last Return On Invested Capital (10.86%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.12% | ||
| ROIC | 10.86% |
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 has a Profit Margin (6.28%) which is in line with its industry peers.
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 (11.71%) is better than 60.16% of its industry peers.
FLS's Operating Margin has been stable in the last couple of years.
FLS has a Gross Margin of 33.12%. This is comparable to the rest of the industry: FLS outperforms 55.47% 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 | 11.71% | ||
| PM (TTM) | 6.28% | ||
| GM | 33.12% |
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.
Compared to 1 year ago, FLS has about the same amount of shares outstanding.
The number of shares outstanding for FLS has been increased compared to 5 years ago.
The debt/assets ratio for FLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.76 indicates that FLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLS (3.76) is better than 64.84% of its industry peers.
FLS has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as FLS would need 3.72 years to pay back of all of its debts.
FLS has a Debt to FCF ratio (3.72) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.65 indicates that FLS is somewhat dependend on debt financing.
FLS's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. FLS is outperformed by 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.1
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
FLS has a Current ratio (2.10) which is comparable to the rest of the industry.
FLS has a Quick Ratio of 1.50. This is a normal value and indicates that FLS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FLS (1.50) is better than 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.29% over the past year.
The Earnings Per Share has been growing slightly by 4.18% on average over the past years.
FLS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)21.29%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.66%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%2.7%
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 13.84% yearly.
Based on estimates for the next years, FLS will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y26.11%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
EPS Next 5Y13.84%
Revenue Next Year4.9%
Revenue Next 2Y4.5%
Revenue Next 3Y4.28%
Revenue Next 5Y4.08%
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
Based on the Price/Earnings ratio of 18.63, 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 71.88% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. FLS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of FLS can be described as correct.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than 78.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. FLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 61.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FLS is valued a bit cheaper than the industry average as 71.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 12.92 |
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.
A more expensive valuation may be justified as FLS's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)0.71
PEG (5Y)4.46
EPS Next 2Y19.08%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.48%. 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 1.76.
Compared to the average S&P500 Dividend Yield of 2.41, FLS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
37.86% 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.
DP37.86%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
56.26
-0.4 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change7.37%
Ins Owners0.54%
Ins Owner Change-0.48%
Market Cap7.36B
Analysts85
Price Target67.83 (20.57%)
Short Float %3.36%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP37.86%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.66%
Min EPS beat(2)14.88%
Max EPS beat(2)18.43%
EPS beat(4)3
Avg EPS beat(4)6.5%
Min EPS beat(4)-9.88%
Max EPS beat(4)18.43%
EPS beat(8)7
Avg EPS beat(8)11.35%
EPS beat(12)10
Avg EPS beat(12)11.06%
EPS beat(16)11
Avg EPS beat(16)2.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)2.1%
Revenue beat(8)5
Avg Revenue beat(8)0.78%
Revenue beat(12)8
Avg Revenue beat(12)2.08%
Revenue beat(16)8
Avg Revenue beat(16)0.64%
PT rev (1m)0%
PT rev (3m)7.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)4.51%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 14.69 | ||
| P/S | 1.58 | ||
| P/FCF | 18.44 | ||
| P/OCF | 15.33 | ||
| P/B | 3.31 | ||
| P/tB | 10.47 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)3.02
EY5.37%
EPS(NY)3.83
Fwd EY6.81%
FCF(TTM)3.05
FCFY5.42%
OCF(TTM)3.67
OCFY6.52%
SpS35.53
BVpS17
TBVpS5.37
PEG (NY)0.71
PEG (5Y)4.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.12% | ||
| ROCE | 12.8% | ||
| ROIC | 10.86% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 21.96% | ||
| OM | 11.71% | ||
| PM (TTM) | 6.28% | ||
| GM | 33.12% | ||
| FCFM | 8.59% |
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%
ROICexcg growth 3Y15.64%
ROICexcg 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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 88.5% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.5% | ||
| Profit Quality | 136.83% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.76 |
F-Score7
WACC9.84%
ROIC/WACC1.1
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)21.29%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.66%
EPS Next Y26.11%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
EPS Next 5Y13.84%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%2.7%
Revenue Next Year4.9%
Revenue Next 2Y4.5%
Revenue Next 3Y4.28%
Revenue Next 5Y4.08%
EBIT growth 1Y12.29%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year40.22%
EBIT Next 3Y17.68%
EBIT Next 5Y14.32%
FCF growth 1Y8624.58%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y487.28%
OCF growth 3Y19.36%
OCF growth 5Y5.59%