FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
69.38 USD
-0.78 (-1.11%)
69.38 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. FLS has an excellent profitability rating, but there are some minor concerns on its financial health. FLS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FLS had positive earnings in the past year.
In the past year FLS had a positive cash flow from operations.
Each year in the past 5 years FLS has been profitable.
Of the past 5 years FLS 4 years had a positive operating cash flow.
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 72.73% of the companies in the same industry.
FLS has a better Return On Equity (20.00%) than 87.12% 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 75.76% 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 10.27%.
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
Looking at the Profit Margin, with a value of 9.66%, FLS is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
FLS's Profit Margin has been stable in the last couple of years.
The Operating Margin of FLS (11.96%) is better than 61.36% of its industry peers.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLS is still creating some value.
The number of shares outstanding for FLS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FLS has more shares outstanding
FLS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.98 indicates that FLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FLS (3.98) is better than 65.91% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.36, FLS is doing good in the industry, outperforming 73.48% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
FLS's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. FLS is outperformed by 62.12% 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 | 3.98 |
ROIC/WACC1.18
WACC9.35%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
The Current ratio of FLS (2.10) is comparable to the rest of the industry.
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's Quick ratio of 1.54 is fine compared to the rest of the industry. FLS outperforms 66.67% 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.
The Revenue has been growing slightly by 3.19% in the past 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
Based on estimates for the next years, FLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.45% on average per year.
Based on estimates for the next years, FLS will show a small growth in Revenue. The Revenue will grow by 4.02% on average per year.
EPS Next Y29.98%
EPS Next 2Y21.75%
EPS Next 3Y18.2%
EPS Next 5Y14.45%
Revenue Next Year4.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.13%
Revenue Next 5Y4.02%
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.
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
FLS is valuated rather expensively with a Price/Earnings ratio of 21.48.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than 65.15% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, FLS is valued at the same level.
With a Price/Forward Earnings ratio of 17.33, FLS is valued on the expensive side.
FLS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 65.91% of the companies in the same industry.
FLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLS indicates a rather cheap valuation: FLS is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 14.44 |
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)0.72
PEG (5Y)5.14
EPS Next 2Y21.75%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.18%.
FLS's Dividend Yield is a higher than the industry average which is at 0.98.
Compared to an average S&P500 Dividend Yield of 2.00, FLS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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.
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%
69.38
-0.78 (-1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-4.07%
Ins Owners0.49%
Ins Owner Change-14.56%
Market Cap8.82B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target79.76 (14.96%)
Short Float %2.95%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)1.82%
PT rev (3m)17.59%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)1.09%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 17.33 | ||
| P/S | 1.88 | ||
| P/FCF | 14.02 | ||
| P/OCF | 12.54 | ||
| P/B | 3.9 | ||
| P/tB | 11.87 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)3.23
EY4.66%
EPS(NY)4
Fwd EY5.77%
FCF(TTM)4.95
FCFY7.13%
OCF(TTM)5.53
OCFY7.98%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.72
PEG (5Y)5.14
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 | 3.98 |
F-Score7
WACC9.35%
ROIC/WACC1.18
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 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.1%
Revenue Next 2Y4.02%
Revenue Next 3Y4.13%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year43.44%
EBIT Next 3Y19.03%
EBIT Next 5Y14.73%
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 21.48 and the Price/Book (PB) ratio is 3.9.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.