Flowserve (FLS) AI Stock Analysis

• Market Cap: $8.95B
• Dividend Yield: 1.17%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.55
• 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: 1,433,531
• 30 Day Avg. Volume: 1,562,936
• 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: 0.88
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 9.86
• 1Y Price Target: $78.63
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 3.46
• Revenue Forecast (FY): $4.77B

• Rating: 79 Outperform
• Price Target: $82.00 ▲(16.44% Upside)

Flowserve's strong financial performance and strategic initiatives, such as the divestiture of asbestos liabilities, are significant positives. The company's robust earnings call and positive technical indicators further support the stock's outlook. However, valuation concerns and potential challenges in certain market segments slightly temper the overall score.

Positive Factors

Revenue Growth

Flowserve's robust revenue growth indicates strong market demand and effective sales strategies, positioning the company for sustained expansion.

Cash Flow Generation

Strong cash flow generation enhances Flowserve's ability to invest in growth opportunities and maintain financial flexibility, supporting long-term stability.

Asbestos Liabilities Divestiture

Divesting asbestos liabilities reduces financial risk and volatility, allowing Flowserve to focus on growth and improve cash flow predictability.

Negative Factors

Challenges in Engineered Pump Projects

Declines in engineered pump project bookings could impact future revenue streams and indicate potential challenges in project execution.

Weakness in Chemical End Market

Weakness in the chemical market suggests limited growth opportunities in this segment, potentially affecting Flowserve's overall market expansion.

Middle East Energy Project Slowdown

A slowdown in Middle East energy projects may hinder growth in a key market, impacting Flowserve's revenue and strategic objectives.

Flowserve Business Overview & Revenue Model

Company Description

Flowserve Corporation (FLS) is a global provider of fluid motion and control products and services. The company operates primarily in the industrial sectors, including oil and gas, power generation, water management, and chemical processing. Flowserve's core offerings include pumps, valves, seals, and automation solutions, designed to optimize the performance and reliability of fluid systems in various applications. With a strong focus on engineering innovation and customer service, Flowserve serves a diverse clientele across the world.

How the Company Makes Money

Flowserve generates revenue through the sale of its extensive range of products and services, which include engineered pumps, valves, seals, and aftermarket services. The company's revenue model is built on both product sales and service contracts, with significant earnings derived from the installation, maintenance, and repair of its products. Key revenue streams include the manufacturing and distribution of fluid motion and control solutions, as well as long-term service agreements that ensure ongoing support and maintenance for customers. Flowserve has established partnerships with major players in the energy and industrial sectors, which further contribute to its revenue through collaborative projects and joint ventures. Additionally, the company benefits from a strong global presence, allowing it to tap into various regional markets and capitalize on growing demand for energy-efficient and reliable fluid management solutions.

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	797.96M	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: 70.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 70.42 is above the 20-day moving average (MA) of 70.39, above the 50-day MA of 63.94, and above the 200-day MA of 53.73, indicating a bullish trend. The MACD of 1.97 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.74 is Neutral, 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	$8.95B	20.49	20.97%	1.17%	3.19%	69.89%
DOV	79 Outperform	$26.97B	12.09	15.88%	1.03%	-5.24%	45.69%
SPXC	77 Outperform	$10.81B	46.27	12.76%	―	12.60%	24.02%
PNR	75 Outperform	$17.08B	26.49	17.97%	0.96%	0.83%	-1.32%
ITT	72 Outperform	$15.06B	29.09	17.85%	0.81%	8.01%	2.67%
RRX	69 Neutral	$9.57B	37.30	3.89%	0.97%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Flowserve Corporate Events

Flowserve Completes Divestiture of Asbestos Liabilities

On December 11, 2025, Flowserve Corporation completed the divestiture of its legacy asbestos liabilities by selling its subsidiary BW/IP – New Mexico, Inc. to Ajax HoldCo LLC, an affiliate of Acorn Investment Partners. This transaction, which involved a total capitalization of approximately $219 million, allows Flowserve to remove these liabilities from its balance sheet and indemnifies the company from future financial exposure related to these liabilities. As a result, Flowserve expects a one-time loss of approximately $140 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share.

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.

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.