FLOWSERVE CORP (FLS) Stock Fundamental Analysis
NYSE:FLS - New York Stock Exchange, Inc. - US34354P1057 - Common Stock - Currency: USD
FLS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. FLS has an average financial health and profitability rating. 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
With a Return On Assets value of 5.14%, FLS perfoms like the industry average, outperforming 54.26% of the companies in the same industry.
FLS's Return On Equity of 14.08% is fine compared to the rest of the industry. FLS outperforms 65.89% of its industry peers.
The Return On Invested Capital of FLS (10.85%) is better than 74.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FLS is below the industry average of 10.67%.
The last Return On Invested Capital (10.85%) for FLS is above the 3 year average (8.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.08% | ||
| ROIC | 10.85% |
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 (6.20%) which is comparable to the rest of the industry.
FLS's Profit Margin has been stable in the last couple of years.
The Operating Margin of FLS (11.31%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FLS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 32.16%, FLS is in line with its industry, outperforming 54.26% of the companies in the same industry.
FLS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 6.2% | ||
| GM | 32.16% |
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
FLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Compared to 1 year ago, FLS has a worse debt to assets ratio.
2.2 Solvency
FLS has an Altman-Z score of 3.54. 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 3.54, FLS is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
FLS has a debt to FCF ratio of 4.37. This is a neutral value as FLS would need 4.37 years to pay back of all of its debts.
FLS has a Debt to FCF ratio of 4.37. This is comparable to the rest of the industry: FLS outperforms 55.04% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that FLS is somewhat dependend on debt financing.
FLS's Debt to Equity ratio of 0.73 is on the low side compared to the rest of the industry. FLS is outperformed by 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.1
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.98 indicates that FLS should not have too much problems paying its short term obligations.
FLS's Current ratio of 1.98 is in line compared to the rest of the industry. FLS outperforms 45.74% of its industry peers.
A Quick Ratio of 1.41 indicates that FLS should not have too much problems paying its short term obligations.
The Quick ratio of FLS (1.41) is better than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
FLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.56%, which is quite impressive.
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 5.49% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)24.56%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%24.14%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%5.25%
3.2 Future
Based on estimates for the next years, FLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.53% on average per year.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y19.18%
EPS Next 2Y16.13%
EPS Next 3Y13.39%
EPS Next 5Y14.53%
Revenue Next Year4.75%
Revenue Next 2Y4.26%
Revenue Next 3Y3.62%
Revenue Next 5Y4.31%
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
A Price/Earnings ratio of 16.72 indicates a correct valuation of FLS.
Compared to the rest of the industry, the Price/Earnings ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 70.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FLS to the average of the S&P500 Index (28.22), we can say FLS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.04, which indicates a correct valuation of FLS.
77.52% of the companies in the same industry are more expensive than FLS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.86. FLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLS is valued a bit cheaper than 62.79% of the companies in the same industry.
70.54% of the companies in the same industry are more expensive than FLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.03 | ||
| EV/EBITDA | 11.71 |
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.
A more expensive valuation may be justified as FLS's earnings are expected to grow with 13.39% in the coming years.
PEG (NY)0.87
PEG (5Y)4
EPS Next 2Y16.13%
EPS Next 3Y13.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, FLS has a reasonable but not impressive dividend return.
In the last 3 months the price of FLS has falen by -24.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.05, FLS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, FLS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
39.06% 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.
DP39.06%
EPS Next 2Y16.13%
EPS Next 3Y13.39%
47.48
+1.32 (+2.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.64%
Inst Owner Change-1.02%
Ins Owners0.41%
Ins Owner Change11.14%
Market Cap6.21B
Analysts85
Price Target65.48 (37.91%)
Short Float %1.58%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP39.06%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.67%
Min EPS beat(2)-9.88%
Max EPS beat(2)2.55%
EPS beat(4)3
Avg EPS beat(4)7.34%
Min EPS beat(4)-9.88%
Max EPS beat(4)22.16%
EPS beat(8)7
Avg EPS beat(8)17.76%
EPS beat(12)9
Avg EPS beat(12)4.06%
EPS beat(16)10
Avg EPS beat(16)2.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.43%
Revenue beat(4)2
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)3.77%
Revenue beat(8)6
Avg Revenue beat(8)3.17%
Revenue beat(12)7
Avg Revenue beat(12)1.79%
Revenue beat(16)8
Avg Revenue beat(16)0.97%
PT rev (1m)-10.21%
PT rev (3m)-9.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.16%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.08%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 13.04 | ||
| P/S | 1.36 | ||
| P/FCF | 18.03 | ||
| P/OCF | 14.59 | ||
| P/B | 3.09 | ||
| P/tB | 11.65 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)2.84
EY5.98%
EPS(NY)3.64
Fwd EY7.67%
FCF(TTM)2.63
FCFY5.55%
OCF(TTM)3.25
OCFY6.85%
SpS34.86
BVpS15.36
TBVpS4.08
PEG (NY)0.87
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 14.08% | ||
| ROCE | 12.78% | ||
| ROIC | 10.85% | ||
| ROICexc | 13.03% | ||
| ROICexgc | 23.23% | ||
| OM | 11.31% | ||
| PM (TTM) | 6.2% | ||
| GM | 32.16% | ||
| FCFM | 7.55% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 94.65% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 7.71 | ||
| Cash Conversion | 70.76% | ||
| Profit Quality | 121.76% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.54 |
F-Score7
WACC9.87%
ROIC/WACC1.1
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 Y19.18%
EPS Next 2Y16.13%
EPS Next 3Y13.39%
EPS Next 5Y14.53%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%5.25%
Revenue Next Year4.75%
Revenue Next 2Y4.26%
Revenue Next 3Y3.62%
Revenue Next 5Y4.31%
EBIT growth 1Y26.33%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year34.45%
EBIT Next 3Y17.2%
EBIT Next 5Y15.39%
FCF growth 1Y33.23%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y30.55%
OCF growth 3Y19.36%
OCF growth 5Y5.59%