FLEXIBLE SOLUTIONS INTL INC (FSI) Stock Fundamental Analysis
NYSEARCA:FSI - NYSE Arca - CA33938T1049 - Common Stock - Currency: USD
Overall FSI gets a fundamental rating of 6 out of 10. We evaluated FSI against 85 industry peers in the Chemicals industry. FSI has an excellent profitability rating, but there are some minor concerns on its financial health. FSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FSI had positive earnings in the past year.
In the past year FSI had a positive cash flow from operations.
In the past 5 years FSI has always been profitable.
In the past 5 years FSI always reported a positive cash flow from operatings.
1.2 Ratios
FSI has a better Return On Assets (3.73%) 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 63.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.39%, FSI is in the better half of the industry, outperforming 68.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FSI 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
FSI's Profit Margin of 6.31% is fine compared to the rest of the industry. FSI outperforms 74.12% of its industry peers.
In the last couple of years the Profit Margin of FSI has grown nicely.
FSI's Operating Margin of 12.82% is fine compared to the rest of the industry. FSI outperforms 69.41% of its industry peers.
In the last couple of years the Operating Margin of FSI has grown nicely.
The Gross Margin of FSI (33.91%) is better 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FSI is still 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.
Compared to 1 year ago, FSI has a worse debt to assets ratio.
2.2 Solvency
FSI has an Altman-Z score of 3.15. This indicates that FSI is financially healthy and has little risk of bankruptcy at the moment.
FSI's Altman-Z score of 3.15 is fine compared to the rest of the industry. FSI outperforms 78.82% of its industry peers.
FSI has a debt to FCF ratio of 16.96. This is a negative value and a sign of low solvency as FSI would need 16.96 years to pay back of all of its debts.
FSI's Debt to FCF ratio of 16.96 is in line compared to the rest of the industry. FSI outperforms 54.12% of its industry peers.
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 | 3.15 |
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.
The Current ratio of FSI (2.72) is better than 77.65% of its industry peers.
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.
The Quick ratio of FSI (1.88) is better than 75.29% of its industry peers.
| 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.
Looking at the last year, FSI shows a decrease in Revenue. The Revenue has decreased by -3.23% in the last 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
The Revenue is expected to grow by 31.10% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 22.50 indicates a rather expensive valuation of FSI.
FSI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.86. FSI is around the same levels.
FSI is valuated cheaply with a Price/Forward Earnings ratio of 5.86.
Based on the Price/Forward Earnings ratio, FSI is valued cheaper than 94.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.43, FSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 5.86 |
4.2 Price Multiples
FSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FSI is cheaper than 68.24% of the companies in the same industry.
FSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.55 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
FSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FSI has a very decent profitability rating, which 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)1.36
PEG (5Y)2.15
EPS Next 2Y71.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FSI has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 3.74, FSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, FSI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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
54.48% of the earnings are spent on dividend by FSI. This is a bit on the high side, but may be sustainable.
DP54.48%
EPS Next 2Y71.82%
EPS Next 3YN/A
4.5
+0.14 (+3.33%)
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 Cap56.92M
Analysts80
Price Target9.18 (104%)
Short Float %0.06%
Short Ratio0.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 | 22.5 | ||
| Fwd PE | 5.86 | ||
| P/S | 1.56 | ||
| P/FCF | 79.55 | ||
| P/OCF | 10.24 | ||
| P/B | 1.48 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)0.2
EY4.44%
EPS(NY)0.77
Fwd EY17.06%
FCF(TTM)0.06
FCFY1.26%
OCF(TTM)0.44
OCFY9.76%
SpS2.88
BVpS3.04
TBVpS2.67
PEG (NY)1.36
PEG (5Y)2.15
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 | 3.15 |
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%