FLEXIBLE SOLUTIONS INTL INC (FSI) Stock Fundamental Analysis
NYSEARCA:FSI - NYSE Arca - CA33938T1049 - Common Stock - Currency: USD
FSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While FSI has a great profitability rating, there are some minor concerns on its financial health. FSI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FSI was profitable.
FSI had a positive operating cash flow in the past year.
In the past 5 years FSI has always been profitable.
FSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FSI (3.73%) is better than 69.41% of its industry peers.
FSI's Return On Equity of 6.00% is fine compared to the rest of the industry. FSI outperforms 64.71% of its industry peers.
FSI has a Return On Invested Capital of 7.39%. This is in the better half of the industry: FSI outperforms 68.24% 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 6.84%.
| 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 74.12% of its industry peers.
FSI's Profit Margin has improved in the last couple of years.
FSI's Operating Margin of 12.82% is fine compared to the rest of the industry. FSI outperforms 69.41% of its industry peers.
FSI's Operating Margin has improved in the last couple of years.
FSI has a better Gross Margin (33.91%) than 65.88% of its industry peers.
FSI's Gross Margin has improved in the last couple of years.
| 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
FSI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FSI has been increased compared to 5 years ago.
The debt/assets ratio for FSI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.54 indicates that FSI is not in any danger for bankruptcy at the moment.
The Altman-Z score of FSI (3.54) is better than 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 in line with its industry peers.
FSI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
FSI has a Debt to Equity ratio of 0.27. This is in the better half of the industry: FSI outperforms 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.93
WACC7.97%
2.3 Liquidity
A Current Ratio of 2.72 indicates that FSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.72, FSI is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
FSI has a Quick Ratio of 1.88. This is a normal value and indicates that FSI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.88, FSI is in the better half of the industry, outperforming 75.29% 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.
FSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.47% yearly.
FSI shows a decrease in Revenue. In the last year, the revenue decreased by -3.23%.
FSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
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
FSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 71.82% yearly.
FSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.10% yearly.
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
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 27.70 indicates a quite expensive valuation of FSI.
Compared to the rest of the industry, the Price/Earnings ratio of FSI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FSI to the average of the S&P500 Index (27.45), we can say FSI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 7.22, the valuation of FSI can be described as very cheap.
90.59% of the companies in the same industry are more expensive than FSI, based on the Price/Forward Earnings ratio.
FSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.7 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSI is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.93 | ||
| EV/EBITDA | 10.27 |
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.
A more expensive valuation may be justified as FSI's earnings are expected to grow with 71.82% in the coming years.
PEG (NY)1.67
PEG (5Y)2.64
EPS Next 2Y71.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FSI has a Yearly Dividend Yield of 2.02%.
FSI's Dividend Yield is comparable with the industry average which is at 3.69.
FSI's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
FSI has been paying a dividend for less than 5 years, so it still needs to build a track record.
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
5.54
+0.14 (+2.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners9.16%
Inst Owner Change4.72%
Ins Owners35.3%
Ins Owner Change0%
Market Cap70.08M
Analysts80
Price Target9.18 (65.7%)
Short Float %0.17%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)0%
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 | 27.7 | ||
| Fwd PE | 7.22 | ||
| P/S | 1.92 | ||
| P/FCF | 97.93 | ||
| P/OCF | 12.61 | ||
| P/B | 1.82 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)0.2
EY3.61%
EPS(NY)0.77
Fwd EY13.86%
FCF(TTM)0.06
FCFY1.02%
OCF(TTM)0.44
OCFY7.93%
SpS2.88
BVpS3.04
TBVpS2.67
PEG (NY)1.67
PEG (5Y)2.64
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 | 3.54 |
F-Score5
WACC7.97%
ROIC/WACC0.93
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%