FLOWSERVE CORP (FLS) Stock Fundamental Analysis
NYSE:FLS - New York Stock Exchange, Inc. - US34354P1057 - Common Stock - Currency: USD
Taking everything into account, FLS scores 5 out of 10 in our fundamental rating. FLS was compared to 128 industry peers in the Machinery industry. FLS has only an average score on both its financial health and profitability. 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.
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 has a Return On Assets of 5.13%. This is comparable to the rest of the industry: FLS outperforms 53.91% of its industry peers.
With a decent Return On Equity value of 13.12%, FLS is doing good in the industry, outperforming 64.84% of the companies in the same industry.
FLS's Return On Invested Capital of 10.86% is fine compared to the rest of the industry. FLS outperforms 73.44% of its industry peers.
FLS had an Average Return On Invested Capital over the past 3 years of 8.33%. This is below the industry average of 10.71%.
The 3 year average ROIC (8.33%) for FLS is below the current ROIC(10.86%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of FLS has remained more or less at the same level.
FLS has a better Operating Margin (11.71%) than 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.
FLS has a Gross Margin of 33.12%. This is comparable to the rest of the industry: FLS outperforms 56.25% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FLS is still 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.
The debt/assets ratio for FLS is higher compared to a year ago.
2.2 Solvency
FLS has an Altman-Z score of 3.67. This indicates that FLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FLS (3.67) is better than 62.50% 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's Debt to FCF ratio of 3.72 is in line compared to the rest of the industry. FLS outperforms 59.38% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that FLS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, FLS is doing worse than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.67 |
ROIC/WACC1.14
WACC9.49%
2.3 Liquidity
A Current Ratio of 2.10 indicates that FLS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.10, FLS is in line with its industry, outperforming 52.34% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that FLS should not have too much problems paying its short term obligations.
FLS has a better Quick ratio (1.50) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.29% over the past year.
The Earnings Per Share has been growing slightly by 4.18% on average over the past years.
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 9.97% yearly.
FLS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.72% yearly.
EPS Next Y20.67%
EPS Next 2Y17.29%
EPS Next 3Y15.46%
EPS Next 5Y9.97%
Revenue Next Year5.66%
Revenue Next 2Y4.75%
Revenue Next 3Y4.17%
Revenue Next 5Y2.72%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.26, FLS is valued on the expensive side.
Based on the Price/Earnings ratio, FLS is valued a bit cheaper than the industry average as 72.66% of the companies are valued more expensively.
FLS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
FLS is valuated correctly with a Price/Forward Earnings ratio of 14.04.
Based on the Price/Forward Earnings ratio, FLS is valued a bit cheaper than 75.78% of the companies in the same industry.
FLS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLS indicates a somewhat cheap valuation: FLS is cheaper than 64.84% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FLS is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.06 | ||
| EV/EBITDA | 12.1 |
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.
A more expensive valuation may be justified as FLS's earnings are expected to grow with 15.46% in the coming years.
PEG (NY)0.84
PEG (5Y)4.13
EPS Next 2Y17.29%
EPS Next 3Y15.46%
5. Dividend
5.1 Amount
FLS has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 1.91, FLS pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, FLS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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
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 2Y17.29%
EPS Next 3Y15.46%
52.14
-0.22 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.54%
Inst Owner Change0.38%
Ins Owners0.54%
Ins Owner Change12.14%
Market Cap6.81B
Analysts85
Price Target67.83 (30.09%)
Short Float %4.91%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)2.08%
PT rev (3m)-0.62%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0.7%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 14.04 | ||
| P/S | 1.47 | ||
| P/FCF | 17.06 | ||
| P/OCF | 14.18 | ||
| P/B | 3.06 | ||
| P/tB | 9.69 | ||
| EV/EBITDA | 12.1 |
EPS(TTM)3.02
EY5.79%
EPS(NY)3.71
Fwd EY7.12%
FCF(TTM)3.06
FCFY5.86%
OCF(TTM)3.68
OCFY7.05%
SpS35.59
BVpS17.03
TBVpS5.38
PEG (NY)0.84
PEG (5Y)4.13
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 | 3.67 |
F-Score7
WACC9.49%
ROIC/WACC1.14
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 Y20.67%
EPS Next 2Y17.29%
EPS Next 3Y15.46%
EPS Next 5Y9.97%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y8.78%
Revenue growth 5Y2.96%
Sales Q2Q%2.7%
Revenue Next Year5.66%
Revenue Next 2Y4.75%
Revenue Next 3Y4.17%
Revenue Next 5Y2.72%
EBIT growth 1Y12.29%
EBIT growth 3Y21.82%
EBIT growth 5Y3.5%
EBIT Next Year40.22%
EBIT Next 3Y17.68%
EBIT Next 5Y11.77%
FCF growth 1Y8624.58%
FCF growth 3Y20.83%
FCF growth 5Y6.75%
OCF growth 1Y487.28%
OCF growth 3Y19.36%
OCF growth 5Y5.59%