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%)
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 has an excellent profitability rating, but 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
- FLS had positive earnings in the past year.
- FLS had a positive operating cash flow in the past year.
- In the past 5 years FLS has always been profitable.
- FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.77%, FLS is doing good in the industry, outperforming 73.48% of the companies in the same industry.
- The Return On Equity of FLS (20.00%) is better than 87.88% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.00%, FLS is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- 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 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
- 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.
- With a Gross Margin value of 33.72%, FLS perfoms like the industry average, outperforming 58.33% 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
- FLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, FLS has about the same amount of shares outstanding.
- Compared to 5 years ago, FLS has more shares outstanding
- Compared to 1 year ago, FLS has a worse debt to assets ratio.
2.2 Solvency
- FLS has an Altman-Z score of 4.18. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
- FLS has a Altman-Z score of 4.18. This is in the better half of the industry: FLS outperforms 65.15% of its industry peers.
- FLS has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as FLS would need 2.36 years to pay back of 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.
- 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 | 4.18 |
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 comparable to the rest of the industry.
- A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.54, FLS is doing good in 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.
- The Earnings Per Share has been growing slightly by 4.18% on average over the past years.
- The Revenue has been growing slightly by 3.19% in the past 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
- The Earnings Per Share is expected to grow by 14.36% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.96% on average over the next years.
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
- 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 24.11, the valuation of FLS can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 62.12% of the companies listed in the same industry.
- FLS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.46, FLS is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 65.15% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, FLS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
- Based on the Price/Free Cash Flow ratio, FLS is valued 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
- 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 18.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)5.77
EPS Next 2Y21.75%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.10%, FLS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.98, FLS pays a bit more dividend than its industry peers.
- FLS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
- 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%
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.