FLOWSERVE CORP (FLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLS - US34354P1057 - Common Stock
72.04 USD
+0.15 (+0.21%)
72.04 USD
0 (0%)
Taking everything into account, FLS scores 6 out of 10 in our fundamental rating. FLS was compared to 130 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
In the past year FLS was profitable.
FLS had a positive operating cash flow in the past year.
In the past 5 years FLS has always been profitable.
Of the past 5 years FLS 4 years had a positive operating cash flow.
1.2 Ratios
FLS's Return On Assets of 7.77% is fine compared to the rest of the industry. FLS outperforms 73.08% of its industry peers.
The Return On Equity of FLS (20.00%) is better than 86.92% of its industry peers.
With a decent Return On Invested Capital value of 11.00%, FLS is doing good in the industry, outperforming 75.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FLS is below the industry average of 10.46%.
The 3 year average ROIC (8.33%) for FLS is below the current ROIC(11.00%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.66%, FLS is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.96%, FLS is in line with its industry, outperforming 60.00% of the companies in the same industry.
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 58.46% 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 | 11.96% | ||
| 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
FLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FLS has about the same amount of shares outstanding.
FLS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that FLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.04, FLS is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
FLS has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as FLS would need 2.36 years to pay back of all of its debts.
FLS's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. FLS outperforms 73.08% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that FLS is somewhat dependend on debt financing.
FLS has a worse Debt to Equity ratio (0.63) than 63.08% of its industry peers.
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 | 4.04 |
ROIC/WACC1.17
WACC9.38%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
With a Current ratio value of 2.10, FLS perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
FLS has a Quick Ratio of 1.54. This is a normal value and indicates that FLS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.54, FLS is doing good in the industry, outperforming 66.15% of the companies in the same industry.
| 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.
Looking at the last year, FLS shows a small growth in Revenue. The Revenue has grown by 3.19% in the last 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)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 14.45% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y30.01%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
EPS Next 5Y14.45%
Revenue Next Year4.12%
Revenue Next 2Y4.08%
Revenue Next 3Y4.26%
Revenue Next 5Y4.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.30, the valuation of FLS can be described as rather expensive.
FLS's Price/Earnings ratio is a bit cheaper when compared to the industry. FLS is cheaper than 60.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of FLS to the average of the S&P500 Index (26.49), we can say FLS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.06, the valuation of FLS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than 63.85% of the companies in the same industry.
FLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
FLS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FLS is valued cheaper than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.56 | ||
| EV/EBITDA | 14.95 |
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 18.08% in the coming years.
PEG (NY)0.74
PEG (5Y)5.33
EPS Next 2Y21.56%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.17%.
Compared to an average industry Dividend Yield of 1.84, FLS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, FLS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
FLS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.35%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
72.04
+0.15 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-4.06%
Ins Owners0.49%
Ins Owner Change-14.52%
Market Cap9.16B
Revenue(TTM)4.69B
Net Income(TTM)452.78M
Analysts82.5
Price Target78.34 (8.75%)
Short Float %3.55%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.84
Dividend Growth(5Y)2.02%
DP24.35%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.44%
Min EPS beat(2)12%
Max EPS beat(2)14.88%
EPS beat(4)3
Avg EPS beat(4)8.86%
Min EPS beat(4)-9.88%
Max EPS beat(4)18.43%
EPS beat(8)7
Avg EPS beat(8)10.82%
EPS beat(12)11
Avg EPS beat(12)17.11%
EPS beat(16)12
Avg EPS beat(16)5.38%
Revenue beat(2)0
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)-3.58%
Revenue beat(4)1
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)2.1%
Revenue beat(8)4
Avg Revenue beat(8)-0.34%
Revenue beat(12)8
Avg Revenue beat(12)1.82%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)15.49%
PT rev (3m)15.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.68%
EPS NY rev (1m)1.12%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.06 | ||
| P/S | 1.95 | ||
| P/FCF | 14.56 | ||
| P/OCF | 13.02 | ||
| P/B | 4.04 | ||
| P/tB | 12.32 | ||
| EV/EBITDA | 14.95 |
EPS(TTM)3.23
EY4.48%
EPS(NY)3.99
Fwd EY5.54%
FCF(TTM)4.95
FCFY6.87%
OCF(TTM)5.53
OCFY7.68%
SpS36.87
BVpS17.81
TBVpS5.85
PEG (NY)0.74
PEG (5Y)5.33
Graham Number35.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 20% | ||
| ROCE | 12.96% | ||
| ROIC | 11% | ||
| ROICexc | 13.63% | ||
| ROICexgc | 24.14% | ||
| OM | 11.96% | ||
| PM (TTM) | 9.66% | ||
| GM | 33.72% | ||
| FCFM | 13.42% |
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%
ROICexgc growth 3Y15.64%
ROICexgc 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 78.26% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.26% | ||
| Profit Quality | 138.92% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 4.04 |
F-Score7
WACC9.38%
ROIC/WACC1.17
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)20.52%
EPS 3Y24.77%
EPS 5Y4.18%
EPS Q2Q%30.43%
EPS Next Y30.01%
EPS Next 2Y21.56%
EPS Next 3Y18.08%
EPS Next 5Y14.45%
Revenue 1Y (TTM)3.19%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%3.65%
Revenue Next Year4.12%
Revenue Next 2Y4.08%
Revenue Next 3Y4.26%
Revenue Next 5Y4.02%
EBIT growth 1Y11.56%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year43.44%
EBIT Next 3Y18.94%
EBIT Next 5Y14.73%
FCF growth 1Y413.01%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y250.63%
OCF growth 3Y19.36%
OCF growth 5Y5.59%
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 of FLOWSERVE CORP (FLS) stock?
ChartMill assigns a valuation rating of 6 / 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 6 / 10.
Can you provide the PE and PB ratios for FLS stock?
The Price/Earnings (PE) ratio for FLOWSERVE CORP (FLS) is 22.3 and the Price/Book (PB) ratio is 4.04.
What is the earnings growth outlook for FLOWSERVE CORP?
The Earnings per Share (EPS) of FLOWSERVE CORP (FLS) is expected to grow by 30.01% in the next year.