FLOWSERVE CORP (FLS) Stock Fundamental Analysis
NYSE:FLS - US34354P1057 - Common Stock
53.66 USD
-1.06 (-1.94%)
53.66 USD
0 (0%)
FLS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
In the past year FLS had a positive cash flow from operations.
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 Return On Assets (5.13%) which is comparable to the rest of the industry.
FLS has a Return On Equity of 13.12%. This is in the better half of the industry: FLS outperforms 67.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.86%, FLS is in the better half of the industry, outperforming 76.56% 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 9.99%.
The last Return On Invested Capital (10.86%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.12% | ||
| ROIC | 10.86% |
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 (6.28%) which is comparable to the rest of the industry.
FLS's Profit Margin has been stable in the last couple of years.
FLS's Operating Margin of 11.71% is fine compared to the rest of the industry. FLS outperforms 60.16% of its industry peers.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
With a Gross Margin value of 33.12%, FLS perfoms like the industry average, outperforming 55.47% 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 | 11.71% | ||
| PM (TTM) | 6.28% | ||
| GM | 33.12% |
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.
Compared to 1 year ago, FLS has about the same amount of shares outstanding.
Compared to 5 years ago, FLS has more shares outstanding
The debt/assets ratio for FLS is higher compared to a year ago.
2.2 Solvency
FLS has an Altman-Z score of 3.70. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
FLS's Altman-Z score of 3.70 is fine compared to the rest of the industry. FLS outperforms 63.28% of its industry peers.
The Debt to FCF ratio of FLS is 3.72, which is a good value as it means it would take FLS, 3.72 years of fcf income to pay off all of its debts.
FLS has a Debt to FCF ratio (3.72) which is comparable to the rest of the industry.
FLS has a Debt/Equity ratio of 0.65. This is a neutral value indicating FLS is somewhat dependend on debt financing.
The Debt to Equity ratio of FLS (0.65) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.07
WACC10.19%
2.3 Liquidity
FLS has a Current Ratio of 2.10. This indicates that FLS is financially healthy and has no problem in meeting its short term obligations.
FLS's Current ratio of 2.10 is in line compared to the rest of the industry. FLS outperforms 53.13% of its industry peers.
FLS has a Quick Ratio of 1.50. This is a normal value and indicates that FLS is financially healthy and should not expect problems in meeting its short term obligations.
FLS's Quick ratio of 1.50 is fine compared to the rest of the industry. FLS outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.29%, 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.
The Revenue has been growing slightly by 3.15% 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)21.29%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.66%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%2.7%
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 13.84% yearly.
Based on estimates for the next years, FLS will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y26.11%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
EPS Next 5Y13.84%
Revenue Next Year4.9%
Revenue Next 2Y4.5%
Revenue Next 3Y4.28%
Revenue Next 5Y4.08%
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 17.77, the valuation of FLS can be described as rather expensive.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than 74.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, FLS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.02, the valuation of FLS can be described as correct.
79.69% 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 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLS is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FLS is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 12.38 |
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 16.12% in the coming years.
PEG (NY)0.68
PEG (5Y)4.25
EPS Next 2Y19.08%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, FLS has a reasonable but not impressive dividend return.
FLS's Dividend Yield is a higher than the industry average which is at 1.78.
FLS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
FLS pays out 37.86% of its income as dividend. This is a sustainable payout ratio.
FLS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.86%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
53.66
-1.06 (-1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change7.37%
Ins Owners0.54%
Ins Owner Change1.5%
Market Cap7.02B
Analysts85
Price Target67.83 (26.41%)
Short Float %3.44%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP37.86%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.66%
Min EPS beat(2)14.88%
Max EPS beat(2)18.43%
EPS beat(4)3
Avg EPS beat(4)6.5%
Min EPS beat(4)-9.88%
Max EPS beat(4)18.43%
EPS beat(8)7
Avg EPS beat(8)11.35%
EPS beat(12)10
Avg EPS beat(12)11.06%
EPS beat(16)11
Avg EPS beat(16)2.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)2.1%
Revenue beat(8)5
Avg Revenue beat(8)0.78%
Revenue beat(12)8
Avg Revenue beat(12)2.08%
Revenue beat(16)8
Avg Revenue beat(16)0.64%
PT rev (1m)4.23%
PT rev (3m)7.95%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-4.98%
EPS NY rev (1m)4.51%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.51 | ||
| P/FCF | 17.59 | ||
| P/OCF | 14.62 | ||
| P/B | 3.16 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)3.02
EY5.63%
EPS(NY)3.83
Fwd EY7.14%
FCF(TTM)3.05
FCFY5.69%
OCF(TTM)3.67
OCFY6.84%
SpS35.53
BVpS17
TBVpS5.37
PEG (NY)0.68
PEG (5Y)4.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.12% | ||
| ROCE | 12.8% | ||
| ROIC | 10.86% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 21.96% | ||
| OM | 11.71% | ||
| PM (TTM) | 6.28% | ||
| GM | 33.12% | ||
| FCFM | 8.59% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 88.5% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.5% | ||
| Profit Quality | 136.83% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.7 |
F-Score7
WACC10.19%
ROIC/WACC1.07
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)21.29%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.66%
EPS Next Y26.11%
EPS Next 2Y19.08%
EPS Next 3Y16.12%
EPS Next 5Y13.84%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%2.7%
Revenue Next Year4.9%
Revenue Next 2Y4.5%
Revenue Next 3Y4.28%
Revenue Next 5Y4.08%
EBIT growth 1Y12.29%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year40.22%
EBIT Next 3Y17.68%
EBIT Next 5Y14.32%
FCF growth 1Y8624.58%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y487.28%
OCF growth 3Y19.36%
OCF growth 5Y5.59%