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%)
Overall FLS gets a fundamental rating of 6 out of 10. We evaluated FLS 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FLS was profitable.
FLS had a positive operating cash flow in the past year.
FLS had positive earnings in each of the past 5 years.
FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FLS has a better Return On Assets (7.77%) than 72.73% of its industry peers.
FLS has a Return On Equity of 20.00%. This is amongst the best in the industry. FLS outperforms 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.
FLS had an Average Return On Invested Capital over the past 3 years of 8.33%. This is in line with the industry average of 10.27%.
The last Return On Invested Capital (11.00%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| 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's Profit Margin of 9.66% is fine compared to the rest of the industry. FLS outperforms 71.21% of its industry peers.
In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.96%, FLS is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
FLS's Operating Margin has been stable in the last couple of years.
FLS's Gross Margin of 33.72% is in line compared to the rest of the industry. FLS outperforms 59.09% of its industry peers.
FLS's Gross Margin has been stable in the last couple of years.
| 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.
FLS has about the same amout of shares outstanding than it did 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
FLS has an Altman-Z score of 3.98. This indicates that FLS is financially healthy and has little risk of 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.
FLS's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. FLS outperforms 73.48% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, FLS is not doing good in the industry: 62.12% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for FLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.98 |
ROIC/WACC1.17
WACC9.38%
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.
A Quick Ratio of 1.54 indicates that FLS should not have too much problems paying its short term obligations.
FLS has a Quick ratio of 1.54. This is in the better half 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
The Earnings Per Share has grown by an impressive 20.52% over the past year.
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.
FLS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.19%.
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
The Earnings Per Share is expected to grow by 14.45% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.48, FLS is valued on the expensive side.
65.15% of the companies in the same industry are more expensive than FLS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. FLS is around the same levels.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, FLS is valued a bit cheaper.
| 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.
FLS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLS is cheaper than 83.33% of the companies 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.
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 18.20% in the coming years.
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%. Purely for dividend investing, there may be better candidates out there.
FLS's Dividend Yield is a higher than the industry average which is at 0.98.
With a Dividend Yield of 1.18, FLS pays less dividend than the S&P500 average, which is at 2.00.
| 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
WACC9.38%
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 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.