Flowserve (FLS) AI Stock Analysis

• Market Cap: $8.84B
• Dividend Yield: 1.21%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.56
• Revenue Growth: 3.19%
• EPS Growth: 69.89%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.90
• Shares Outstanding: 127,115,510
• 10 Day Avg. Volume: 3,636,670
• 30 Day Avg. Volume: 2,338,001
• PEG Ratio: 0.52
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 21.97
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 9.86
• 1Y Price Target: $75.00
• Price Target Upside: 8.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.45
• Revenue Forecast (FY): $4.78B

• Rating: 79 Outperform
• Price Target: $79.00 ▲(14.10% Upside)

Flowserve's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust revenue growth, improved profitability, and strategic initiatives position it well for future growth. However, technical indicators suggest the stock may be overbought, and there are challenges in certain market segments that could impact future performance.

Positive Factors

Revenue Growth

Strong revenue growth reflects effective market penetration and product demand, supporting long-term business expansion and competitiveness.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, bolstering long-term stability.

Nuclear Segment Growth

Success in the nuclear segment positions Flowserve for sustained growth, leveraging expertise in a critical and expanding industry.

Negative Factors

Challenges in Engineered Pump Projects

Declines in engineered pump bookings may signal demand fluctuations, impacting revenue and growth in this key segment.

Weakness in Chemical End Market

Weak growth in the chemical market could limit revenue diversification and expose Flowserve to sector-specific risks.

Middle East Energy Project Slowdown

Slowdowns in Middle East energy projects may hinder growth in a traditionally strong market, affecting overall performance.

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 generates revenue primarily through the sale of its core products, which include pumps, valves, and seals. The company earns money through two main segments: the Engineered Product Division, which focuses on custom-engineered solutions for complex applications, and the Aftermarket Services Division, which provides maintenance, repair, and replacement services for its products. Key revenue streams include direct sales to end-users, long-term service contracts, and aftermarket services that enhance product lifecycle management. Additionally, Flowserve benefits from strategic partnerships with major companies in various industries, allowing it to expand its market reach and enhance its service offerings.

Flowserve Financial Statement Overview

Summary

Flowserve exhibits strong financial health with impressive revenue growth, improved profitability, and a solid balance sheet. The company's cash flow generation is robust, supporting its operational and strategic initiatives. While the company has reduced its leverage significantly, maintaining this trajectory will be crucial for sustaining long-term growth.

Income Statement

Flowserve has demonstrated strong revenue growth, with a TTM revenue growth rate of 89%. The company has improved its profitability margins, with a gross profit margin of 32.8% and a net profit margin of 9.8% in the TTM period. EBIT and EBITDA margins have also shown positive trends, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.10 in the TTM period, indicating reduced leverage. Return on equity has improved to 21.3%, showcasing effective utilization of equity. The equity ratio stands at 38.8%, suggesting a stable capital structure.

Cash Flow

Cash flow performance is robust, with a significant free cash flow growth rate of 57.66% in the TTM period. The operating cash flow to net income ratio is 1.55, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.69B	4.56B	4.32B	3.62B	3.54B	3.73B
Gross Profit	1.58B	1.47B	1.30B	994.65M	1.07B	1.16B
EBITDA	797.94M	541.05M	374.42M	291.58M	291.03M	359.23M
Net Income	452.78M	282.76M	186.74M	188.69M	125.95M	130.42M
Balance Sheet
Total Assets	5.83B	5.50B	5.11B	4.79B	4.75B	5.31B
Cash, Cash Equivalents and Short-Term Investments	833.85M	675.44M	545.68M	434.97M	658.45M	1.10B
Total Debt	1.67B	1.69B	1.40B	1.46B	1.50B	1.94B
Total Liabilities	3.51B	3.45B	3.13B	2.93B	2.91B	3.55B
Stockholders Equity	2.26B	2.01B	1.94B	1.82B	1.80B	1.73B
Cash Flow
Free Cash Flow	629.02M	344.29M	258.41M	-116.30M	195.18M	253.13M
Operating Cash Flow	703.41M	425.31M	325.77M	-40.01M	250.12M	310.54M
Investing Cash Flow	-377.57M	-387.21M	-68.58M	-6.09M	-59.48M	-41.70M
Financing Cash Flow	-106.07M	117.50M	-153.01M	-150.01M	-599.71M	147.59M

Flowserve Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Positive. The current price of 69.24 is above the 20-day moving average (MA) of 58.71, above the 50-day MA of 56.05, and above the 200-day MA of 52.36, indicating a bullish trend. The MACD of 4.66 indicates Negative momentum. The RSI at 72.76 is Negative, neither overbought nor oversold. The STOCH value of 87.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLS.

Flowserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLS	79 Outperform	$8.84B	20.24	20.97%	1.21%	3.19%	69.89%
ITT	77 Outperform	$14.70B	31.32	17.85%	0.70%	8.01%	2.67%
DOV	76 Outperform	$24.49B	10.98	15.88%	1.14%	-5.24%	45.69%
PNR	75 Outperform	$17.45B	27.06	17.97%	0.93%	0.83%	-1.32%
SPXC	75 Outperform	$11.12B	46.43	12.76%	―	12.60%	24.02%
RRX	69 Neutral	$9.14B	35.60	3.89%	0.99%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Flowserve Corporate Events

Flowserve’s Strong Q3 Performance Boosts 2025 Outlook

Flowserve Corporation is a prominent global provider of flow control products and services, specializing in engineered and industrial pumps, seals, and valves for infrastructure markets across over 50 countries.

Flowserve’s Earnings Call Highlights Strong Growth and Strategic Moves

Flowserve’s recent earnings call conveyed a generally positive sentiment, underscoring the company’s robust financial performance and strategic advancements. The company reported significant growth in its aftermarket and nuclear segments, alongside an increase in guidance and margin expansion. Strategic initiatives, such as the divestment of asbestos liabilities, are expected to enhance future cash flow. However, the company also faces challenges in engineered pump projects, the chemical market, and a slowdown in Middle East energy projects, which could pose potential hurdles.

Flowserve Divests Asbestos Liabilities to Ajax HoldCo

On October 28, 2025, Flowserve Corporation announced its decision to divest its legacy asbestos liabilities by selling the associated company to Ajax HoldCo LLC, an affiliate of Acorn Investment Partners. This strategic move is expected to provide greater financial certainty for investors and allow Flowserve to focus on growth and value-enhancing opportunities. The divestiture is anticipated to close in the fourth quarter of 2025, with Flowserve contributing $199 million and the buyer contributing $20 million to capitalize the company. This transaction will remove the asbestos liabilities and related insurance assets from Flowserve’s balance sheet, enabling the company to concentrate on organic and inorganic investments to expand its market reach.

The most recent analyst rating on (FLS) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Announces Leadership Change in Flow Control Division

On September 17, 2025, Flowserve Corporation announced the resignation of Kirk Wilson as President of its Flow Control Division, effective October 13, 2025. Alice DeBiasio, who has extensive experience in leading global industrial organizations, will succeed him. Wilson will remain as a senior advisor until January 9, 2026, to aid in the transition. This leadership change is expected to leverage DeBiasio’s expertise in digital transformation and global industrial management to drive Flowserve’s sustained, profitable growth and enhance shareholder value.

The most recent analyst rating on (FLS) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve’s Earnings Call: Strong Q2 and Strategic Moves

Flowserve’s recent earnings call painted a picture of robust performance and strategic foresight, despite some challenges. The company reported a strong second quarter, with increased guidance and a thriving aftermarket business. However, the impacts of the Mogas acquisition and project delays in energy and chemical markets due to macroeconomic conditions and tariffs were noted as significant hurdles.

Flowserve Corporation Reports Strong Q2 2025 Results

Flowserve Corporation is a leading provider of flow control products and services, catering to the global infrastructure markets with a focus on engineered and industrial pumps, seals, and valves. The company operates in more than 50 countries, offering a comprehensive range of flow management services.