Flowserve (FLS) AI Stock Analysis

• Market Cap: $9.46B
• Dividend Yield: 1.17%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.59
• Revenue Growth: 3.19%
• EPS Growth: 69.89%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.11
• Shares Outstanding: 127,260,330
• 10 Day Avg. Volume: 1,666,397
• 30 Day Avg. Volume: 1,716,646
• PEG Ratio: 1.10
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 20.74
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 15.62
• 1Y Price Target: $96.25
• Price Target Upside: 29.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 4.14
• Revenue Forecast (FY): $5.01B

• Rating: 66 Neutral
• Price Target: $80.00 ▲(7.63% Upside)
• Action: Downgraded Date: 03/16/26
• Date: Action: Downgraded 03/16/26

The score is driven primarily by improving financial performance (strong multi-year margin and profitability gains with better leverage) and constructive 2026 guidance with aftermarket strength and margin expansion. Offsetting this, the technical setup is weak with clear downside momentum (price below key moving averages; negative MACD), and valuation is only average with a 26x P/E and modest yield.

Positive Factors

Margin Expansion

Flowserve delivered sustained, multi-year margin improvement driven by operational execution and mix shift. Higher and expanding gross/EBIT margins are durable because they reflect structural cost and productivity gains and better product mix, supporting stronger earnings power through cycles.

Recurring Aftermarket revenue

A large, growing aftermarket business provides recurring, higher-margin revenue tied to installed base service and parts. Consistent aftermarket bookings and sales reduce top-line cyclicality and create predictable, long-lived cash streams that underpin valuation and reinvestment capacity.

Improved Cash Generation & Capital Returns

Stronger OCF and high free-cash-flow conversion enabled meaningful buybacks and dividends while preserving capacity for M&A. Persistent cash generation supports deleveraging, disciplined capital allocation, and funding for strategic bolt-ons, enhancing long-term financial flexibility.

Negative Factors

Elevated Absolute Debt

Despite improved leverage ratios, the company carries nearly $2B of debt, which increases sensitivity to slower demand or higher rates. High absolute debt constrains strategic flexibility, raises interest exposure, and makes downside scenarios more painful for cash flow and investment plans.

Cash-Flow Volatility / Working-Capital Risk

Historical swings in OCF and free cash flow reflect project timing and working-capital swings in engineered products. This volatility can strain liquidity in downturns, complicate capital allocation, and increase reliance on external financing during funding gaps or acquisitive moves.

Concentration on Nuclear/Project Timing

Growth and M&A rationale lean on nuclear and long-duration projects, which push revenue conversion back into later periods and raise execution risk. If nuclear build-out or project timing disappoints, backlog conversion and near-term earnings could underperform, stressing growth assumptions.

Flowserve Business Overview & Revenue Model

Company Description

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve Pump Division (FPD) and Flow Control Division (FCD). The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines. The FCD segment provides engineered and industrial valve and automation solutions, including isolation and control valves, actuation, controls, and related equipment, as well as equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and fluids. The company primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was incorporated in 1912 and is headquartered in Irving, Texas.

How the Company Makes Money

Flowserve makes money by selling engineered flow-control equipment and by providing aftermarket parts and services over the installed life of that equipment. Revenue is primarily generated through (1) original equipment sales and (2) aftermarket offerings. Original equipment revenue comes from designing and manufacturing pumps, valves, seals, and related systems that are typically specified into industrial and infrastructure projects; these sales are often tied to capital spending, maintenance turnarounds, and new-build expansions at customer sites. Aftermarket revenue comes from replacement parts (e.g., components, spares, and consumables), upgrades/retrofits, repairs, field service, and longer-term service programs that support reliability, performance, and compliance for equipment already installed in the field. The aftermarket stream is recurring in nature because customers must maintain and periodically refurbish equipment operating in harsh, continuous-duty environments. Flowserve’s earnings are influenced by its mix of original equipment vs. aftermarket work, the scale of its installed base (which drives parts and service demand), and end-market conditions in energy, chemical processing, power, and water-related applications. Specific partnership-driven revenue details: null.

Flowserve Financial Statement Overview

Summary

Fundamentals are improving with strong margin expansion and earnings recovery (net margin ~3.6% to ~7.3% from 2021 to 2025; EBIT margin ~5.4% to ~12.8%). Balance sheet leverage has improved (debt-to-equity ~1.12 to ~0.87) but debt remains sizable (~$1.91B). Cash flow is positive overall and supportive in 2025, but volatility (notably negative OCF/FCF in 2022 and weaker FCF growth vs 2024) raises cyclicality/working-capital risk.

Income Statement

Flowserve shows a solid profitability and growth profile. Annual revenue increased from $3.54B (2021) to $4.73B (2025), with margins expanding meaningfully: gross margin improved from ~30.1% (2021) to ~33.4% (2025) and net margin rose from ~3.6% to ~7.3%. Operating profitability also strengthened (EBIT margin ~5.4% to ~12.8%), supporting a clear earnings recovery. The main watch-out is volatility in reported growth rates (including declines in 2020–2021 and unusually high growth shown in 2025), which suggests the top-line trajectory has not been consistently smooth year-to-year.

Balance Sheet

The balance sheet looks reasonable but moderately leveraged. Debt-to-equity improved from ~1.12 (2020) to ~0.87 (2025), indicating better capital structure over time, while equity grew to ~$2.19B (2025). Returns on equity strengthened from ~7.0% (2021) to ~15.8% (2025), consistent with improving profitability. The key weakness is that total debt remains sizable at ~$1.91B (2025), leaving the company more sensitive to downturns and financing costs than a lower-leverage peer.

Cash Flow

Cash generation is generally supportive but not fully consistent. Operating cash flow improved from $250M (2021) to $506M (2025) and free cash flow remained positive in most years, reaching $435M in 2025, with free cash flow running at ~86% of net income in 2025 (good earnings quality). However, 2022 was a clear blemish with negative operating cash flow (-$40M) and negative free cash flow (-$116M), and 2025 shows a sharp free cash flow decline versus 2024 (negative growth), signaling potential working-capital swings or elevated investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.73B	4.56B	4.32B	3.62B	3.54B
Gross Profit	1.58B	1.47B	1.30B	994.65M	1.07B
EBITDA	698.59M	541.05M	374.42M	291.58M	291.03M
Net Income	346.25M	282.76M	186.74M	188.69M	125.95M
Balance Sheet
Total Assets	5.71B	5.50B	5.11B	4.79B	4.75B
Cash, Cash Equivalents and Short-Term Investments	760.18M	675.44M	545.68M	434.97M	658.45M
Total Debt	1.91B	1.69B	1.40B	1.46B	1.50B
Total Liabilities	3.45B	3.45B	3.13B	2.93B	2.91B
Stockholders Equity	2.19B	2.01B	1.94B	1.82B	1.80B
Cash Flow
Free Cash Flow	434.96M	344.29M	258.41M	-116.30M	195.18M
Operating Cash Flow	505.88M	425.31M	325.77M	-40.01M	250.12M
Investing Cash Flow	-125.16M	-387.21M	-68.58M	-6.09M	-59.48M
Financing Cash Flow	-326.93M	117.50M	-153.01M	-150.01M	-599.71M

Flowserve Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Negative. The current price of 74.33 is below the 20-day moving average (MA) of 82.25, below the 50-day MA of 80.57, and above the 200-day MA of 63.41, indicating a neutral trend. The MACD of -2.33 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLS.

Flowserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	78 Outperform	$15.89B	28.23	17.85%	0.79%	8.01%	2.67%
SPXC	76 Outperform	$10.10B	30.59	13.29%	―	12.60%	24.02%
DOV	75 Outperform	$28.62B	24.49	14.76%	1.04%	-5.24%	45.69%
PNR	68 Neutral	$14.41B	26.14	17.48%	0.96%	0.83%	-1.32%
FLS	66 Neutral	$9.46B	26.05	15.81%	1.17%	3.19%	69.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RRX	61 Neutral	$12.32B	33.29	4.18%	0.97%	-4.99%	22.16%

Flowserve Corporate Events

Flowserve Expands Board With Appointment of Brian Savoy

On March 16, 2026, Flowserve’s board elected Brian D. Savoy, Chief Financial Officer and Executive Vice President of Duke Energy, to its board of directors and appointed him to the Audit Committee and the Technology, Innovation and Risk Committee. His appointment followed a March 12, 2026 by-law amendment that increased the board size from ten to eleven directors.

Executives highlighted Savoy’s deep power-industry, nuclear and business-transformation experience as a strategic asset to sharpen Flowserve’s focus on growth in priority power and industrial markets. The move underscores Flowserve’s efforts to strengthen governance and operational expertise as it seeks to accelerate growth through the Flowserve Business System and capture opportunities across critical energy and infrastructure sectors.

The most recent analyst rating on (FLS) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Posts Strong 2025 Results, Announces Trillium Valves Deal

On February 5, 2026, Flowserve reported strong financial results for the fourth quarter and full year 2025, with Q4 bookings rising to $1.2 billion driven by 10% aftermarket growth, and full-year bookings reaching $4.7 billion, including about $400 million in nuclear awards. Reported sales grew 3.8% in 2025 to $4.73 billion, adjusted operating margin expanded to 14.8% from 11.8%, and adjusted EPS climbed 38.4% to $3.64, while cash from operations increased to $505.9 million, enabling the company to return $365 million to shareholders via dividends and repurchases. Despite a negative reported EPS in Q4 due to one-time asbestos divestiture impacts, adjusted Q4 operating margin reached 16.8% and adjusted EPS rose to $1.11, with management noting it achieved its 2027 adjusted operating margin target two years ahead of schedule. Flowserve also initiated 2026 guidance calling for 5%–7% total sales growth and adjusted EPS of $4.00–$4.20, and set 2030 targets that include mid-single-digit organic sales growth, roughly 20% adjusted operating margins and double-digit adjusted EPS growth, underscoring its confidence in healthy end markets and the momentum of its operational improvement programs. In addition, the company entered a definitive agreement on February 4, 2026, to acquire Trillium Flow Technologies’ Valves Division for $490 million in cash, a move that will expand Flowserve’s presence in nuclear, traditional power, industrial and critical infrastructure valves and actuators and is expected to be funded with a mix of cash and new debt, potentially strengthening its competitive position in mission-critical flow control applications once the deal closes, which is anticipated around mid-2026 subject to customary approvals.

The most recent analyst rating on (FLS) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Announces Planned Board Transition as Director Departs

On December 29, 2025, Flowserve Corporation announced that director Kenneth I. Siegel informed the board he will not stand for re-election at the company’s 2026 annual meeting of shareholders and will continue to serve as a director until that meeting. The company said Siegel’s decision was not due to any disagreement with management or the board, and the directors expressed their appreciation for his service and contributions, signaling an orderly and non-contentious board transition for stakeholders.

The most recent analyst rating on (FLS) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.