FLEXIBLE SOLUTIONS INTL INC (FSI) Stock Fundamental Analysis
NYSEARCA:FSI - NYSE Arca - CA33938T1049 - Common Stock - Currency: USD
Taking everything into account, FSI scores 6 out of 10 in our fundamental rating. FSI was compared to 85 industry peers in the Chemicals industry. FSI has an excellent profitability rating, but there are some minor concerns on its financial health. FSI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FSI had positive earnings in the past year.
FSI had a positive operating cash flow in the past year.
FSI had positive earnings in each of the past 5 years.
Each year in the past 5 years FSI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.73%, FSI is doing good in the industry, outperforming 69.41% of the companies in the same industry.
FSI has a better Return On Equity (6.00%) than 64.71% of its industry peers.
With a decent Return On Invested Capital value of 7.39%, FSI is doing good in the industry, outperforming 68.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FSI is above the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 6% | ||
| ROIC | 7.39% |
ROA(3y)7.89%
ROA(5y)8.18%
ROE(3y)12.46%
ROE(5y)13.03%
ROIC(3y)9.67%
ROIC(5y)11.22%
1.3 Margins
The Profit Margin of FSI (6.31%) is better than 74.12% of its industry peers.
FSI's Profit Margin has improved in the last couple of years.
FSI's Operating Margin of 12.82% is fine compared to the rest of the industry. FSI outperforms 69.41% of its industry peers.
FSI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.91%, FSI is doing good in the industry, outperforming 65.88% of the companies in the same industry.
FSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 6.31% | ||
| GM | 33.91% |
OM growth 3Y-4.57%
OM growth 5Y9.4%
PM growth 3Y-7.44%
PM growth 5Y2.66%
GM growth 3Y1.5%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSI is creating some value.
Compared to 1 year ago, FSI has more shares outstanding
The number of shares outstanding for FSI has been increased compared to 5 years ago.
Compared to 1 year ago, FSI has a worse debt to assets ratio.
2.2 Solvency
FSI has an Altman-Z score of 3.60. This indicates that FSI is financially healthy and has little risk of bankruptcy at the moment.
FSI has a better Altman-Z score (3.60) than 81.18% of its industry peers.
The Debt to FCF ratio of FSI is 16.96, which is on the high side as it means it would take FSI, 16.96 years of fcf income to pay off all of its debts.
FSI has a Debt to FCF ratio (16.96) which is comparable to the rest of the industry.
FSI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
FSI has a better Debt to Equity ratio (0.27) than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.94
WACC7.87%
2.3 Liquidity
A Current Ratio of 2.72 indicates that FSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.72, FSI is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
FSI has a Quick Ratio of 1.88. This is a normal value and indicates that FSI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.88, FSI is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
FSI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.26%.
Measured over the past years, FSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
Looking at the last year, FSI shows a decrease in Revenue. The Revenue has decreased by -3.23% in the last year.
FSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
EPS 1Y (TTM)5.26%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%-150%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%-18.97%
3.2 Future
FSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.82% yearly.
FSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.10% yearly.
EPS Next Y16.54%
EPS Next 2Y71.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.75%
Revenue Next 2Y31.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
A Price/Earnings ratio of 29.15 indicates a quite expensive valuation of FSI.
The rest of the industry has a similar Price/Earnings ratio as FSI.
FSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.52.
The Price/Forward Earnings ratio is 7.60, which indicates a rather cheap valuation of FSI.
FSI's Price/Forward Earnings ratio is rather cheap when compared to the industry. FSI is cheaper than 91.76% of the companies in the same industry.
FSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSI is on the same level as its industry peers.
FSI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.06 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FSI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FSI's earnings are expected to grow with 71.82% in the coming years.
PEG (NY)1.76
PEG (5Y)2.78
EPS Next 2Y71.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FSI has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, FSI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, FSI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
FSI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
54.48% of the earnings are spent on dividend by FSI. This is a bit on the high side, but may be sustainable.
DP54.48%
EPS Next 2Y71.82%
EPS Next 3YN/A
5.83
+0.09 (+1.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners9.16%
Inst Owner Change0%
Ins Owners35.3%
Ins Owner Change0%
Market Cap73.75M
Analysts80
Price Target9.18 (57.46%)
Short Float %0.17%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP54.48%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-70.3%
Min EPS beat(2)-139.6%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-20.91%
Min EPS beat(4)-139.6%
Max EPS beat(4)41.44%
EPS beat(8)3
Avg EPS beat(8)-5.79%
EPS beat(12)6
Avg EPS beat(12)17.73%
EPS beat(16)8
Avg EPS beat(16)19.46%
Revenue beat(2)0
Avg Revenue beat(2)-14.16%
Min Revenue beat(2)-27.46%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-10.67%
Min Revenue beat(4)-27.46%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-12.4%
Revenue beat(12)5
Avg Revenue beat(12)-5.42%
Revenue beat(16)8
Avg Revenue beat(16)-2.03%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 7.6 | ||
| P/S | 2.02 | ||
| P/FCF | 103.06 | ||
| P/OCF | 13.27 | ||
| P/B | 1.92 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)0.2
EY3.43%
EPS(NY)0.77
Fwd EY13.17%
FCF(TTM)0.06
FCFY0.97%
OCF(TTM)0.44
OCFY7.53%
SpS2.88
BVpS3.04
TBVpS2.67
PEG (NY)1.76
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 6% | ||
| ROCE | 9.66% | ||
| ROIC | 7.39% | ||
| ROICexc | 9.06% | ||
| ROICexgc | 10.16% | ||
| OM | 12.82% | ||
| PM (TTM) | 6.31% | ||
| GM | 33.91% | ||
| FCFM | 1.96% |
ROA(3y)7.89%
ROA(5y)8.18%
ROE(3y)12.46%
ROE(5y)13.03%
ROIC(3y)9.67%
ROIC(5y)11.22%
ROICexc(3y)11.2%
ROICexc(5y)13.11%
ROICexgc(3y)12.73%
ROICexgc(5y)15.64%
ROCE(3y)12.31%
ROCE(5y)14.44%
ROICexcg growth 3Y-18.59%
ROICexcg growth 5Y1.64%
ROICexc growth 3Y-15.78%
ROICexc growth 5Y4.56%
OM growth 3Y-4.57%
OM growth 5Y9.4%
PM growth 3Y-7.44%
PM growth 5Y2.66%
GM growth 3Y1.5%
GM growth 5Y1.97%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 242.04% | ||
| Cap/Sales | 13.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.22% | ||
| Profit Quality | 31.06% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.87%
ROIC/WACC0.94
Cap/Depr(3y)234.9%
Cap/Depr(5y)182.29%
Cap/Sales(3y)10.11%
Cap/Sales(5y)7.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.26%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%-150%
EPS Next Y16.54%
EPS Next 2Y71.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%-18.97%
Revenue Next Year20.75%
Revenue Next 2Y31.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y58.72%
EBIT growth 3Y-1.17%
EBIT growth 5Y16.91%
EBIT Next Year19.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-56.79%
FCF growth 3Y-45.62%
FCF growth 5Y2.3%
OCF growth 1Y51.25%
OCF growth 3Y7.08%
OCF growth 5Y18.63%