FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
77.88 USD
-0.72 (-0.92%)
77.88 USD
0 (0%)
FLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While FLS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year FLS was profitable.
- 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
- The Return On Assets of FLS (7.77%) is better than 73.48% of its industry peers.
- FLS's Return On Equity of 20.00% is amongst the best of the industry. FLS outperforms 87.88% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for FLS is in line with the industry average of 10.24%.
- 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.
- 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 60.61% of its industry peers.
- FLS's Operating Margin has been stable in the last couple of years.
- The Gross Margin of FLS (33.72%) is comparable to the rest of the 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
- 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.
- 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
- An Altman-Z score of 4.18 indicates that FLS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.18, FLS is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
- 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.
- FLS has a Debt to FCF ratio of 2.36. This is in the better half of the industry: FLS outperforms 73.48% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.63, FLS is doing worse than 61.36% of the companies in the same industry.
- 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 | 4.18 |
ROIC/WACC1.14
WACC9.66%
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 in line with its industry peers.
- A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.54, FLS is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
| 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.
- FLS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.18% yearly.
- Looking at the last year, FLS shows a small growth in Revenue. The Revenue has grown by 3.19% in the last year.
- 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
- The Earnings Per Share is expected to grow by 14.36% on average over the next years. This is quite good.
- FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.36%
Revenue Next Year4.02%
Revenue Next 2Y3.97%
Revenue Next 3Y4.02%
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.
- 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 24.11, which indicates a rather expensive current valuation of FLS.
- FLS's Price/Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 62.12% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. FLS is around the same levels.
- FLS is valuated rather expensively with a Price/Forward Earnings ratio of 19.46.
- 65.15% of the companies in the same industry are more expensive than FLS, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of FLS to the average of the S&P500 Index (24.26), we can say FLS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
- FLS's Enterprise Value to EBITDA is on the same level as the industry average.
- FLS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLS is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 16.22 |
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)0.8
PEG (5Y)5.77
EPS Next 2Y21.75%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
- FLS has a Yearly Dividend Yield of 1.07%.
- Compared to an average industry Dividend Yield of 0.98, FLS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.07, FLS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
- 24.35% of the earnings are spent on dividend by FLS. This is a low number and 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%
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 5 / 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 24.11 and the Price/Book (PB) ratio is 4.37.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.