FLOWSERVE CORP (FLS) Stock Fundamental Analysis
NYSE:FLS - New York Stock Exchange, Inc. - US34354P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FLS. FLS was compared to 128 industry peers in the Machinery industry. FLS has an average financial health and profitability rating. FLS is not valued too expensively and it also shows a decent 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.
FLS had positive earnings in each of the past 5 years.
Of the past 5 years FLS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FLS (5.15%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 13.58%, FLS is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
FLS has a better Return On Invested Capital (11.05%) than 74.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLS is in line with the industry average of 10.31%.
The last Return On Invested Capital (11.05%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 13.58% | ||
| ROIC | 11.05% |
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 Profit Margin value of 6.12%, FLS perfoms like the industry average, outperforming 56.25% 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.
FLS has a Operating Margin of 11.57%. This is in the better half of the industry: FLS outperforms 60.16% of its industry peers.
FLS's Operating Margin has been stable in the last couple of years.
FLS has a Gross Margin (32.52%) which is comparable to the rest of the industry.
FLS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.57% | ||
| PM (TTM) | 6.12% | ||
| GM | 32.52% |
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.
FLS has about the same amout of shares outstanding than it did 1 year ago.
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 3.67 indicates that FLS is not in any danger for bankruptcy at the moment.
FLS has a Altman-Z score of 3.67. This is in the better half of the industry: FLS outperforms 62.50% of its industry peers.
The Debt to FCF ratio of FLS is 6.39, which is on the high side as it means it would take FLS, 6.39 years of fcf income to pay off all of its debts.
FLS's Debt to FCF ratio of 6.39 is in line compared to the rest of the industry. FLS outperforms 48.44% of its industry peers.
FLS has a Debt/Equity ratio of 0.70. This is a neutral value indicating FLS is somewhat dependend on debt financing.
The Debt to Equity ratio of FLS (0.70) is worse than 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.12
WACC9.86%
2.3 Liquidity
A Current Ratio of 2.07 indicates that FLS has no problem at all paying its short term obligations.
FLS's Current ratio of 2.07 is in line compared to the rest of the industry. FLS outperforms 52.34% of its industry peers.
A Quick Ratio of 1.46 indicates that FLS should not have too much problems paying its short term obligations.
FLS's Quick ratio of 1.46 is fine compared to the rest of the industry. FLS outperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.56%, which is quite impressive.
Measured over the past 5 years, FLS shows a small growth in Earnings Per Share. The EPS has been growing by 4.18% on average per year.
Looking at the last year, FLS shows a small growth in Revenue. The Revenue has grown by 4.23% in the last 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)24.56%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.14%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%5.25%
3.2 Future
The Earnings Per Share is expected to grow by 14.53% on average over the next years. This is quite good.
FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y19.84%
EPS Next 2Y16.19%
EPS Next 3Y13.66%
EPS Next 5Y14.53%
Revenue Next Year5.42%
Revenue Next 2Y4.54%
Revenue Next 3Y3.86%
Revenue Next 5Y4.31%
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.
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
Based on the Price/Earnings ratio of 17.47, the valuation of FLS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 69.53% of the companies listed in the same industry.
FLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
FLS is valuated correctly with a Price/Forward Earnings ratio of 13.61.
72.66% 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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FLS is cheaper than 61.72% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FLS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.72 | ||
| EV/EBITDA | 11.95 |
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 13.66% in the coming years.
PEG (NY)0.88
PEG (5Y)4.18
EPS Next 2Y16.19%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.70%.
FLS's Dividend Yield is a higher than the industry average which is at 1.88.
FLS's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 39.09% 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.
DP39.09%
EPS Next 2Y16.19%
EPS Next 3Y13.66%
49.61
+0.23 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.64%
Inst Owner Change0.89%
Ins Owners0.41%
Ins Owner Change12.07%
Market Cap6.49B
Analysts85
Price Target62.83 (26.65%)
Short Float %1.83%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP39.09%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.28%
Min EPS beat(2)-9.88%
Max EPS beat(2)18.43%
EPS beat(4)3
Avg EPS beat(4)6.41%
Min EPS beat(4)-9.88%
Max EPS beat(4)18.43%
EPS beat(8)7
Avg EPS beat(8)12.93%
EPS beat(12)10
Avg EPS beat(12)11.18%
EPS beat(16)10
Avg EPS beat(16)1.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)2.1%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)2.1%
Revenue beat(8)6
Avg Revenue beat(8)2.43%
Revenue beat(12)8
Avg Revenue beat(12)2.29%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)-13.85%
PT rev (3m)-12.99%
EPS NQ rev (1m)-6.37%
EPS NQ rev (3m)-9.18%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 13.61 | ||
| P/S | 1.41 | ||
| P/FCF | 27.72 | ||
| P/OCF | 20.71 | ||
| P/B | 3.12 | ||
| P/tB | 10.96 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)2.84
EY5.72%
EPS(NY)3.65
Fwd EY7.35%
FCF(TTM)1.79
FCFY3.61%
OCF(TTM)2.4
OCFY4.83%
SpS35.3
BVpS15.91
TBVpS4.53
PEG (NY)0.88
PEG (5Y)4.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 13.58% | ||
| ROCE | 13.02% | ||
| ROIC | 11.05% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 21.87% | ||
| OM | 11.57% | ||
| PM (TTM) | 6.12% | ||
| GM | 32.52% | ||
| FCFM | 5.07% |
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%
ROICexcg growth 3Y15.64%
ROICexcg 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.39 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 89.51% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.3% | ||
| Profit Quality | 82.84% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.67 |
F-Score7
WACC9.86%
ROIC/WACC1.12
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)24.56%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.14%
EPS Next Y19.84%
EPS Next 2Y16.19%
EPS Next 3Y13.66%
EPS Next 5Y14.53%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%5.25%
Revenue Next Year5.42%
Revenue Next 2Y4.54%
Revenue Next 3Y3.86%
Revenue Next 5Y4.31%
EBIT growth 1Y17.05%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year35.21%
EBIT Next 3Y15.85%
EBIT Next 5Y15.39%
FCF growth 1Y464.43%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y2245.27%
OCF growth 3Y19.36%
OCF growth 5Y5.59%