FLEXIBLE SOLUTIONS INTL INC (FSI) Stock Fundamental Analysis
NYSEARCA:FSI - NYSE Arca - CA33938T1049 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FSI. FSI was compared to 85 industry peers in the Chemicals industry. FSI scores excellent on profitability, but there are some minor concerns on its financial health. FSI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FSI was profitable.
In the past year FSI had a positive cash flow from operations.
FSI had positive earnings in each of the past 5 years.
FSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FSI has a better Return On Assets (3.73%) than 70.59% of its industry peers.
The Return On Equity of FSI (6.00%) is better than 64.71% of its industry peers.
The Return On Invested Capital of FSI (7.39%) is better than 67.06% of its industry peers.
FSI had an Average Return On Invested Capital over the past 3 years of 9.67%. This is above the industry average of 6.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 6% | ||
| ROIC | 7.39% |
ROA(3y)7.89%
ROA(5y)8.18%
ROE(3y)12.46%
ROE(5y)13.03%
ROIC(3y)9.67%
ROIC(5y)11.22%
1.3 Margins
The Profit Margin of FSI (6.31%) is better than 75.29% of its industry peers.
FSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.82%, FSI is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
FSI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.91%, FSI is doing good in the industry, outperforming 65.88% of the companies in the same industry.
In the last couple of years the Gross Margin of FSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.82% | ||
| PM (TTM) | 6.31% | ||
| GM | 33.91% |
OM growth 3Y-4.57%
OM growth 5Y9.4%
PM growth 3Y-7.44%
PM growth 5Y2.66%
GM growth 3Y1.5%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSI is creating some value.
The number of shares outstanding for FSI has been increased compared to 1 year ago.
Compared to 5 years ago, FSI has more shares outstanding
The debt/assets ratio for FSI is higher compared to a year ago.
2.2 Solvency
FSI has an Altman-Z score of 3.20. This indicates that FSI is financially healthy and has little risk of bankruptcy at the moment.
FSI has a Altman-Z score of 3.20. This is in the better half of the industry: FSI outperforms 80.00% of its industry peers.
The Debt to FCF ratio of FSI is 16.96, which is on the high side as it means it would take FSI, 16.96 years of fcf income to pay off all of its debts.
FSI has a Debt to FCF ratio (16.96) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.27 indicates that FSI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, FSI is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.95
WACC7.79%
2.3 Liquidity
FSI has a Current Ratio of 2.72. This indicates that FSI is financially healthy and has no problem in meeting its short term obligations.
FSI's Current ratio of 2.72 is fine compared to the rest of the industry. FSI outperforms 78.82% of its industry peers.
A Quick Ratio of 1.88 indicates that FSI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.88, FSI is doing good in the industry, outperforming 77.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.26% over the past year.
Measured over the past years, FSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
The Revenue has decreased by -3.23% in the past year.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)5.26%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%-150%
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%-18.97%
3.2 Future
The Earnings Per Share is expected to grow by 71.82% on average over the next years. This is a very strong growth
Based on estimates for the next years, FSI will show a very strong growth in Revenue. The Revenue will grow by 31.10% on average per year.
EPS Next Y16.54%
EPS Next 2Y71.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.75%
Revenue Next 2Y31.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 21.80, the valuation of FSI can be described as rather expensive.
FSI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.43. FSI is around the same levels.
A Price/Forward Earnings ratio of 5.68 indicates a rather cheap valuation of FSI.
Based on the Price/Forward Earnings ratio, FSI is valued cheaply inside the industry as 95.29% of the companies are valued more expensively.
FSI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSI indicates a somewhat cheap valuation: FSI is cheaper than 67.06% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.07 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
FSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FSI may justify a higher PE ratio.
FSI's earnings are expected to grow with 71.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)2.08
EPS Next 2Y71.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, FSI has a reasonable but not impressive dividend return.
The stock price of FSI dropped by -22.42% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
FSI's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.38, FSI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
FSI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
FSI pays out 54.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.48%
EPS Next 2Y71.82%
EPS Next 3YN/A
NYSEARCA:FSI (6/4/2025, 6:40:00 PM)
4.36
-0.15 (-3.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners8.85%
Inst Owner Change4.72%
Ins Owners34.89%
Ins Owner Change0%
Market Cap55.15M
Analysts80
Price Target9.18 (110.55%)
Short Float %0.16%
Short Ratio0.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP54.48%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-70.3%
Min EPS beat(2)-139.6%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-20.91%
Min EPS beat(4)-139.6%
Max EPS beat(4)41.44%
EPS beat(8)3
Avg EPS beat(8)-5.79%
EPS beat(12)6
Avg EPS beat(12)17.73%
EPS beat(16)8
Avg EPS beat(16)19.46%
Revenue beat(2)0
Avg Revenue beat(2)-14.16%
Min Revenue beat(2)-27.46%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-10.67%
Min Revenue beat(4)-27.46%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-12.4%
Revenue beat(12)5
Avg Revenue beat(12)-5.42%
Revenue beat(16)8
Avg Revenue beat(16)-2.03%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 5.68 | ||
| P/S | 1.51 | ||
| P/FCF | 77.07 | ||
| P/OCF | 9.93 | ||
| P/B | 1.44 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)0.2
EY4.59%
EPS(NY)0.77
Fwd EY17.61%
FCF(TTM)0.06
FCFY1.3%
OCF(TTM)0.44
OCFY10.07%
SpS2.88
BVpS3.04
TBVpS2.67
PEG (NY)1.32
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 6% | ||
| ROCE | 9.66% | ||
| ROIC | 7.39% | ||
| ROICexc | 9.06% | ||
| ROICexgc | 10.16% | ||
| OM | 12.82% | ||
| PM (TTM) | 6.31% | ||
| GM | 33.91% | ||
| FCFM | 1.96% |
ROA(3y)7.89%
ROA(5y)8.18%
ROE(3y)12.46%
ROE(5y)13.03%
ROIC(3y)9.67%
ROIC(5y)11.22%
ROICexc(3y)11.2%
ROICexc(5y)13.11%
ROICexgc(3y)12.73%
ROICexgc(5y)15.64%
ROCE(3y)12.31%
ROCE(5y)14.44%
ROICexcg growth 3Y-18.59%
ROICexcg growth 5Y1.64%
ROICexc growth 3Y-15.78%
ROICexc growth 5Y4.56%
OM growth 3Y-4.57%
OM growth 5Y9.4%
PM growth 3Y-7.44%
PM growth 5Y2.66%
GM growth 3Y1.5%
GM growth 5Y1.97%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 242.04% | ||
| Cap/Sales | 13.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.22% | ||
| Profit Quality | 31.06% | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 3.2 |
F-Score5
WACC7.79%
ROIC/WACC0.95
Cap/Depr(3y)234.9%
Cap/Depr(5y)182.29%
Cap/Sales(3y)10.11%
Cap/Sales(5y)7.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.26%
EPS 3Y-2.44%
EPS 5Y10.47%
EPS Q2Q%-150%
EPS Next Y16.54%
EPS Next 2Y71.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.23%
Revenue growth 3Y3.57%
Revenue growth 5Y6.86%
Sales Q2Q%-18.97%
Revenue Next Year20.75%
Revenue Next 2Y31.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y58.72%
EBIT growth 3Y-1.17%
EBIT growth 5Y16.91%
EBIT Next Year19.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-56.79%
FCF growth 3Y-45.62%
FCF growth 5Y2.3%
OCF growth 1Y51.25%
OCF growth 3Y7.08%
OCF growth 5Y18.63%