FLOWSERVE CORP (FLS)
US34354P1057 - Common Stock
Taking everything into account, FLS scores 6 out of 10 in our fundamental rating. FLS was compared to 132 industry peers in the Machinery industry. FLS has an average financial health and profitability rating. FLS has a decent growth rate and is not valued too expensively.
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.
FLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.55%, FLS is in line with its industry, outperforming 56.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.99%, FLS is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
FLS's Return On Invested Capital of 9.81% is fine compared to the rest of the industry. FLS outperforms 67.44% of its industry peers.
FLS had an Average Return On Invested Capital over the past 3 years of 6.46%. This is below the industry average of 10.72%.
The last Return On Invested Capital (9.81%) for FLS is above the 3 year average (6.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 11.99% | ||
| ROIC | 9.81% |
ROA(3y)3.42%
ROA(5y)3.45%
ROE(3y)8.99%
ROE(5y)9.47%
ROIC(3y)6.46%
ROIC(5y)7.03%
1.3 Margins
FLS has a Profit Margin of 5.29%. This is comparable to the rest of the industry: FLS outperforms 55.04% of its industry peers.
In the last couple of years the Profit Margin of FLS has grown nicely.
FLS's Operating Margin of 10.31% is in line compared to the rest of the industry. FLS outperforms 53.49% of its industry peers.
FLS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.39%, FLS perfoms like the industry average, outperforming 54.26% of the companies in the same 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 | 10.31% | ||
| PM (TTM) | 5.29% | ||
| GM | 30.39% |
OM growth 3Y-0.38%
OM growth 5Y7.94%
PM growth 3Y11.48%
PM growth 5Y9.67%
GM growth 3Y-1.28%
GM growth 5Y-0.66%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLS has more shares outstanding
Compared to 1 year ago, FLS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.69 indicates that FLS is not in any danger for bankruptcy at the moment.
FLS has a better Altman-Z score (3.69) than 64.34% of its industry peers.
FLS has a debt to FCF ratio of 4.12. This is a neutral value as FLS would need 4.12 years to pay back of all of its debts.
The Debt to FCF ratio of FLS (4.12) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.59 indicates that FLS is somewhat dependend on debt financing.
FLS's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. FLS outperforms 40.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.09
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.88 indicates that FLS should not have too much problems paying its short term obligations.
FLS has a Current ratio of 1.88. This is comparable to the rest of the industry: FLS outperforms 41.86% of its industry peers.
A Quick Ratio of 1.28 indicates that FLS should not have too much problems paying its short term obligations.
FLS's Quick ratio of 1.28 is in line compared to the rest of the industry. FLS outperforms 53.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.56%, 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 3.71% on average per year.
Looking at the last year, FLS shows a quite strong growth in Revenue. The Revenue has grown by 17.31% in the last year.
The Revenue has been growing slightly by 2.41% on average over the past years.
EPS 1Y (TTM)60.56%
EPS 3Y5.86%
EPS 5Y3.71%
EPS growth Q2Q45%
Revenue 1Y (TTM)17.31%
Revenue growth 3Y5.04%
Revenue growth 5Y2.41%
Revenue growth Q2Q10.93%
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 15.58% yearly.
FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y22.26%
EPS Next 2Y19.13%
EPS Next 3Y16.46%
EPS Next 5Y15.58%
Revenue Next Year6.45%
Revenue Next 2Y5.33%
Revenue Next 3Y4.57%
Revenue Next 5Y4.57%
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
FLS is valuated rather expensively with a Price/Earnings ratio of 20.84.
FLS's Price/Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 62.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, FLS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.94, FLS is valued correctly.
FLS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 68.99% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FLS to the average of the S&P500 Index (20.41), we can say FLS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 65.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.16 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
FLS's 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.
A more expensive valuation may be justified as FLS's earnings are expected to grow with 16.46% in the coming years.
PEG (NY)0.94
PEG (5Y)5.61
EPS Next 2Y19.13%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.78%.
Compared to an average industry Dividend Yield of 1.72, FLS pays a better dividend. On top of this FLS pays more dividend than 84.50% of the companies listed in the same industry.
FLS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of FLS has a limited annual growth rate of 1.06%.
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)1.06%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
45.42% of the earnings are spent on dividend by FLS. This is a bit on the high side, but may be sustainable.
The dividend of FLS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.42%
EPS Next 2Y19.13%
EPS Next 3Y16.46%
FLOWSERVE CORP
NYSE:FLS (5/3/2024, 7:04:00 PM)
After market: 47.52 0 (0%)47.52
+0.25 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 15.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)5.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 11.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.31% | ||
| PM (TTM) | 5.29% | ||
| GM | 30.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)60.56%
EPS 3Y5.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.31%
Revenue growth 3Y5.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y