FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
75.9 USD
-1.27 (-1.65%)
75.86 USD
-0.04 (-0.05%)
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 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.
- 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
- Looking at the Return On Assets, with a value of 7.77%, FLS is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
- FLS has a Return On Equity of 20.00%. This is amongst the best in the industry. FLS outperforms 87.88% of its industry peers.
- FLS has a better Return On Invested Capital (11.00%) than 76.52% 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 10.24%.
- 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
- With a decent Profit Margin value of 9.66%, FLS is doing good in the industry, outperforming 71.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 11.96%, FLS is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FLS is creating some value.
- The number of shares outstanding for FLS remains at a similar level compared to 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 4.12. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.12, 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 better Debt to FCF ratio (2.36) 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.
- The Debt to Equity ratio of FLS (0.63) is worse than 61.36% 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 | 4.12 |
ROIC/WACC1.14
WACC9.65%
2.3 Liquidity
- A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
- FLS's Current ratio of 2.10 is in line compared to the rest of the industry. FLS outperforms 53.03% of 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 has a Quick ratio of 1.54. This is in the better half 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
- 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.
- 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
- 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.
- 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.
- 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 23.50, which indicates a rather expensive current valuation of FLS.
- 62.88% 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 26.94, FLS is valued at the same level.
- Based on the Price/Forward Earnings ratio of 18.96, the valuation of FLS can be described as rather expensive.
- 65.15% of the companies in the same industry are more expensive than FLS, based on the Price/Forward Earnings ratio.
- FLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 18.96 |
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 cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.34 | ||
| EV/EBITDA | 15.7 |
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.
- A more expensive valuation may be justified as FLS's earnings are expected to grow with 18.20% in the coming years.
PEG (NY)0.78
PEG (5Y)5.62
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.
- With a Dividend Yield of 1.10, FLS pays less dividend than the S&P500 average, which is at 1.83.
| 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 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
- 24.35% 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.
DP24.35%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
75.9
-1.27 (-1.65%)
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 Change0.05%
Ins Owners0.42%
Ins Owner Change-14.56%
Market Cap9.65B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target81.19 (6.97%)
Short Float %2.55%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)3.65%
PT rev (3m)19.7%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.5 | ||
| Fwd PE | 18.96 | ||
| P/S | 2.06 | ||
| P/FCF | 15.34 | ||
| P/OCF | 13.72 | ||
| P/B | 4.26 | ||
| P/tB | 12.98 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)3.23
EY4.26%
EPS(NY)4
Fwd EY5.27%
FCF(TTM)4.95
FCFY6.52%
OCF(TTM)5.53
OCFY7.29%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.78
PEG (5Y)5.62
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 | 4.12 |
F-Score7
WACC9.65%
ROIC/WACC1.14
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 Year4.02%
Revenue Next 2Y3.97%
Revenue Next 3Y4.02%
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 23.5 and the Price/Book (PB) ratio is 4.26.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.