FLOWSERVE CORP (FLS) Stock Fundamental Analysis
NYSE:FLS - New York Stock Exchange, Inc. - US34354P1057 - Common Stock - Currency: USD
Overall FLS gets a fundamental rating of 5 out of 10. We evaluated FLS against 128 industry peers in the Machinery industry. FLS has only an average score on both its financial health and profitability. 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.
FLS had a positive operating cash flow in the past year.
Each year in the past 5 years FLS has been profitable.
FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FLS has a Return On Assets (5.15%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 13.58%, FLS is doing good in the industry, outperforming 66.41% of the companies in the same industry.
The Return On Invested Capital of FLS (11.05%) is better than 73.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLS is below the industry average of 10.72%.
The 3 year average ROIC (8.33%) for FLS is below the current ROIC(11.05%), indicating increased profibility in the last year.
| 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
The Profit Margin of FLS (6.12%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
FLS has a better Operating Margin (11.57%) than 60.16% of its industry peers.
FLS's Operating Margin has been stable in the last couple of years.
FLS's Gross Margin of 32.52% is in line compared to the rest of the industry. FLS outperforms 55.47% of its industry peers.
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 | 11.57% | ||
| 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
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.
The number of shares outstanding for FLS has been increased compared to 5 years ago.
FLS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.60 indicates that FLS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, FLS is doing good in the industry, outperforming 60.16% of the companies in the same industry.
FLS has a debt to FCF ratio of 6.39. This is a slightly negative value and a sign of low solvency as FLS would need 6.39 years to pay back of all of its debts.
The Debt to FCF ratio of FLS (6.39) is comparable to the rest of the industry.
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 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.12
WACC9.88%
2.3 Liquidity
FLS has a Current Ratio of 2.07. This indicates that FLS is financially healthy and has no problem in meeting its short term obligations.
FLS has a Current ratio (2.07) which is in line with its industry peers.
A Quick Ratio of 1.46 indicates that FLS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, FLS is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.56% 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 4.23% 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)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
FLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.97% yearly.
The Revenue is expected to grow by 2.72% on average over the next years.
EPS Next Y19.84%
EPS Next 2Y16.19%
EPS Next 3Y13.66%
EPS Next 5Y9.97%
Revenue Next Year5.42%
Revenue Next 2Y4.54%
Revenue Next 3Y4.04%
Revenue Next 5Y2.72%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FLS is valuated correctly with a Price/Earnings ratio of 16.35.
71.88% of the companies in the same industry are more expensive than FLS, based on the Price/Earnings ratio.
FLS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.74, which indicates a correct valuation of FLS.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
FLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLS is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
FLS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.94 | ||
| EV/EBITDA | 11.28 |
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)0.82
PEG (5Y)3.91
EPS Next 2Y16.19%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.76%. 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 1.90.
FLS's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of FLS has a limited annual growth rate of 2.02%.
FLS has paid a dividend for at least 10 years, which is 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
39.09% 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.
DP39.09%
EPS Next 2Y16.19%
EPS Next 3Y13.66%
46.43
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.98%
Inst Owner Change0.89%
Ins Owners0.54%
Ins Owner Change12.11%
Market Cap6.07B
Analysts85
Price Target63.14 (35.99%)
Short Float %1.87%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)0.49%
PT rev (3m)-13.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 12.74 | ||
| P/S | 1.32 | ||
| P/FCF | 25.94 | ||
| P/OCF | 19.39 | ||
| P/B | 2.92 | ||
| P/tB | 10.25 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)2.84
EY6.12%
EPS(NY)3.65
Fwd EY7.85%
FCF(TTM)1.79
FCFY3.85%
OCF(TTM)2.4
OCFY5.16%
SpS35.3
BVpS15.91
TBVpS4.53
PEG (NY)0.82
PEG (5Y)3.91
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 | 3.6 |
F-Score7
WACC9.88%
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 5Y9.97%
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 3Y4.04%
Revenue Next 5Y2.72%
EBIT growth 1Y17.05%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year35.21%
EBIT Next 3Y15.85%
EBIT Next 5Y11.77%
FCF growth 1Y464.43%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y2245.27%
OCF growth 3Y19.36%
OCF growth 5Y5.59%