FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - NYSE:FLS - US34354P1057 - Common Stock
67.16 USD
-0.84 (-1.24%)
67.16 USD
0 (0%)
Overall FLS gets a fundamental rating of 6 out of 10. We evaluated FLS against 130 industry peers in the Machinery industry. While FLS has a great profitability rating, 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
In the past year FLS was profitable.
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
FLS has a better Return On Assets (7.77%) than 73.08% of its industry peers.
FLS's Return On Equity of 20.00% is amongst the best of the industry. FLS outperforms 85.38% of its industry peers.
With a decent Return On Invested Capital value of 11.00%, FLS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLS is in line with the industry average of 10.28%.
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
FLS has a Profit Margin of 9.66%. This is in the better half of the industry: FLS outperforms 70.77% of its industry peers.
FLS's Profit Margin has been stable in the last couple of years.
The Operating Margin of FLS (11.96%) is better than 60.77% of its industry peers.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
FLS has a Gross Margin (33.72%) which 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
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.
FLS has more shares outstanding than it did 5 years ago.
FLS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.00 indicates that FLS is not in any danger for bankruptcy at the moment.
FLS has a better Altman-Z score (4.00) than 66.92% 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.
Looking at the Debt to FCF ratio, with a value of 2.36, FLS is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
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 63.85% 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 |
ROIC/WACC1.17
WACC9.41%
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 in line with 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 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.52% over the past year.
FLS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.18% yearly.
The Revenue has been growing slightly by 3.19% in the past year.
Measured over the past years, FLS shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
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.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y28.57%
EPS Next 2Y20.82%
EPS Next 3Y17.32%
EPS Next 5Y14.45%
Revenue Next Year4.51%
Revenue Next 2Y4.24%
Revenue Next 3Y4.11%
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
Based on the Price/Earnings ratio of 20.79, the valuation of FLS can be described as rather expensive.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than 62.31% of the companies in the same industry.
FLS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 17.04, the valuation of FLS can be described as rather expensive.
62.31% of the companies in the same industry are more expensive than FLS, based on the Price/Forward Earnings ratio.
FLS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FLS is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 14.55 |
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 17.32% in the coming years.
PEG (NY)0.73
PEG (5Y)4.97
EPS Next 2Y20.82%
EPS Next 3Y17.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, FLS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.86, FLS pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, FLS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
The dividend of FLS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.35%
EPS Next 2Y20.82%
EPS Next 3Y17.32%
67.16
-0.84 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.08%
Inst Owner Change4.2%
Ins Owners0.53%
Ins Owner Change-4.84%
Market Cap8.78B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts85
Price Target67.83 (1%)
Short Float %4.84%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP24.35%
Div Incr Years1
Div Non Decr Years4
Ex-Date
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.95%
EPS NY rev (3m)6.55%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 17.04 | ||
| P/S | 1.87 | ||
| P/FCF | 13.96 | ||
| P/OCF | 12.49 | ||
| P/B | 3.88 | ||
| P/tB | 11.82 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)3.23
EY4.81%
EPS(NY)3.94
Fwd EY5.87%
FCF(TTM)4.81
FCFY7.16%
OCF(TTM)5.38
OCFY8.01%
SpS35.84
BVpS17.31
TBVpS5.68
PEG (NY)0.73
PEG (5Y)4.97
Graham Number35.47
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 |
F-Score7
WACC9.41%
ROIC/WACC1.17
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 Y28.57%
EPS Next 2Y20.82%
EPS Next 3Y17.32%
EPS Next 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.51%
Revenue Next 2Y4.24%
Revenue Next 3Y4.11%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year40.19%
EBIT Next 3Y17.71%
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 of FLOWSERVE CORP (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.
Can you provide the PE and PB ratios for FLS stock?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 20.79 and the Price/Book (PB) ratio is 3.88.
What is the earnings growth outlook for FLOWSERVE CORP?
The Earnings per Share (EPS) of FLOWSERVE CORP (FLS) is expected to grow by 28.57% in the next year.