FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:FLS • US34354P1057
78.15 USD
-0.49 (-0.62%)
At close: Jan 30, 2026
78.15 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Overall FLS gets a fundamental rating of 6 out of 10. We evaluated FLS against 132 industry peers in the Machinery industry. FLS scores excellent on profitability, but there are some minor concerns on its financial health. 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.
- Each year in the past 5 years FLS has been profitable.
- Of the past 5 years FLS 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of FLS (7.77%) is better than 73.48% of its industry peers.
- FLS has a Return On Equity of 20.00%. This is amongst the best in the industry. FLS outperforms 87.88% of its industry peers.
- With a decent Return On Invested Capital value of 11.00%, FLS is doing good in the industry, outperforming 77.27% 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 10.20%.
- 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 has a better Profit Margin (9.66%) than 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.
- FLS's Operating Margin of 11.96% is fine compared to the rest of the industry. FLS outperforms 60.61% 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 33.72%, FLS perfoms like the industry average, outperforming 58.33% 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 | 11.96% | ||
| 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
- 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
- FLS has an Altman-Z score of 4.18. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.18, FLS is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.36, FLS is in the better half of the industry, outperforming 73.48% of the companies in the same industry.
- FLS has a Debt/Equity ratio of 0.63. This is a neutral value indicating FLS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.63, FLS is doing worse than 62.12% of the companies in the same industry.
- Although FLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.15
WACC9.53%
2.3 Liquidity
- A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
- The Current ratio of FLS (2.10) is comparable to the rest of the industry.
- 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 67.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.52%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 4.18% on average over the past years.
- 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 14.36% 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 3.96% yearly.
EPS Next Y29.51%
EPS Next 2Y22.04%
EPS Next 3Y18.18%
EPS Next 5Y14.36%
Revenue Next Year4.04%
Revenue Next 2Y4.02%
Revenue Next 3Y4.06%
Revenue Next 5Y3.96%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 24.20, the valuation of FLS can be described as rather expensive.
- 62.12% of the companies in the same industry are more expensive than FLS, based on the Price/Earnings ratio.
- FLS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
- The Price/Forward Earnings ratio is 19.43, which indicates a rather expensive current valuation of FLS.
- Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than the industry average as 62.12% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of FLS to the average of the S&P500 Index (25.57), we can say FLS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLS.
- Based on the Price/Free Cash Flow ratio, FLS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.79 | ||
| EV/EBITDA | 16.23 |
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.
- The decent profitability rating of FLS may justify a higher PE ratio.
- FLS's earnings are expected to grow with 18.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)5.79
EPS Next 2Y22.04%
EPS Next 3Y18.18%
5. Dividend
5.1 Amount
- FLS has a Yearly Dividend Yield of 1.07%.
- Compared to an average industry Dividend Yield of 1.02, FLS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.07, FLS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 2Y22.04%
EPS Next 3Y18.18%
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 5 / 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 24.2 and the Price/Book (PB) ratio is 4.39.
Can you provide the financial health for FLS stock?
The financial health rating of FLOWSERVE CORP (FLS) is 6 / 10.