FLEXIBLE SOLUTIONS INTL INC (FSI) Stock Fundamental Analysis
USA - NYSEARCA:FSI - CA33938T1049 - Common Stock
10.8 USD
+1.06 (+10.88%)
11.01 USD
+0.21 (+1.94%)
We assign a fundamental rating of 6 out of 10 to FSI. FSI was compared to 83 industry peers in the Chemicals industry. FSI has an excellent profitability rating, but there are some minor concerns on its financial health. FSI shows excellent growth, but is valued quite expensive already. This makes FSI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year FSI was profitable.
FSI had a positive operating cash flow in the past year.
In the past 5 years FSI has always been profitable.
FSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FSI (3.73%) is better than 73.49% of its industry peers.
The Return On Equity of FSI (6.00%) is better than 66.27% of its industry peers.
FSI has a Return On Invested Capital of 7.39%. This is in the better half of the industry: FSI outperforms 72.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSI is above the industry average of 6.34%.
| 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 72.29% of its industry peers.
FSI's Profit Margin has improved in the last couple of years.
FSI has a better Operating Margin (12.82%) than 69.88% of its industry peers.
In the last couple of years the Operating Margin of FSI has grown nicely.
With a decent Gross Margin value of 33.91%, FSI is doing good in the industry, outperforming 67.47% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FSI is still creating some value.
FSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FSI has been increased compared to 5 years ago.
FSI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.91 indicates that FSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.91, FSI belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
FSI has a debt to FCF ratio of 16.96. This is a negative value and a sign of low solvency as FSI would need 16.96 years to pay back of all of its debts.
FSI has a Debt to FCF ratio of 16.96. This is comparable to the rest of the industry: FSI outperforms 50.60% of its industry peers.
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 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 4.91 |
ROIC/WACC0.88
WACC8.4%
2.3 Liquidity
A Current Ratio of 2.72 indicates that FSI has no problem at all paying its short term obligations.
The Current ratio of FSI (2.72) is better than 75.90% of its industry peers.
A Quick Ratio of 1.88 indicates that FSI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.88, FSI is doing good in the industry, outperforming 75.90% 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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.70%, which is quite good.
FSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.47% yearly.
The Revenue has decreased by -0.23% in the past year.
Measured over the past years, FSI shows a small growth in Revenue. The Revenue has been growing by 6.86% on average per year.
EPS 1Y (TTM)8.7%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%50%
Revenue 1Y (TTM)-0.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%7.96%
3.2 Future
Based on estimates for the next years, FSI will show a very strong growth in Earnings Per Share. The EPS will grow by 70.69% on average per year.
FSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 29.76% yearly.
EPS Next Y20.42%
EPS Next 2Y70.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.19%
Revenue Next 2Y29.76%
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
FSI is valuated quite expensively with a Price/Earnings ratio of 43.20.
FSI's Price/Earnings ratio is a bit more expensive when compared to the industry. FSI is more expensive than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, FSI is valued quite expensively.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of FSI.
FSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FSI is cheaper than 61.45% of the companies in the same industry.
FSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
FSI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FSI is more expensive than 63.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 191.07 | ||
| EV/EBITDA | 18.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FSI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FSI may justify a higher PE ratio.
A more expensive valuation may be justified as FSI's earnings are expected to grow with 70.69% in the coming years.
PEG (NY)2.12
PEG (5Y)4.12
EPS Next 2Y70.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, FSI has a reasonable but not impressive dividend return.
FSI's Dividend Yield is comparable with the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.38, FSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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
FSI pays out 54.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.48%
EPS Next 2Y70.69%
EPS Next 3YN/A
10.8
+1.06 (+10.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners9.16%
Inst Owner Change31.64%
Ins Owners35.3%
Ins Owner Change0%
Market Cap136.73M
Analysts80
Price Target11.73 (8.61%)
Short Float %0.37%
Short Ratio0.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)27.78%
PT rev (3m)27.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)3.33%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-8.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.2 | ||
| Fwd PE | 14.26 | ||
| P/S | 3.75 | ||
| P/FCF | 191.07 | ||
| P/OCF | 24.61 | ||
| P/B | 3.56 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 18.24 |
EPS(TTM)0.25
EY2.31%
EPS(NY)0.76
Fwd EY7.01%
FCF(TTM)0.06
FCFY0.52%
OCF(TTM)0.44
OCFY4.06%
SpS2.88
BVpS3.03
TBVpS2.67
PEG (NY)2.12
PEG (5Y)4.12
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 | 4.91 |
F-Score5
WACC8.4%
ROIC/WACC0.88
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)8.7%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%50%
EPS Next Y20.42%
EPS Next 2Y70.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%7.96%
Revenue Next Year10.19%
Revenue Next 2Y29.76%
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%