Flowserve (FLS) AI Stock Analysis

• Market Cap: $6.95B
• Dividend Yield: 1.56%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.45
• Revenue Growth: 3.15%
• EPS Growth: 14.18%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 130,782,240
• 10 Day Avg. Volume: 2,327,602
• 30 Day Avg. Volume: 2,703,501
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 5.28
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $65.30
• Price Target Upside: 20.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $60.00 ▲(11.17% Upside)

Flowserve's strong financial performance and positive earnings call are the primary drivers of its stock score. The technical analysis and valuation suggest moderate potential, while recent corporate events provide additional financial flexibility.

Positive Factors

Earnings Growth

The transaction is expected to be accretive to earnings in the first year, indicating a positive impact on the company's financials.

Financial Performance

The combination of FLS and GTLS is expected to result in significant cost and revenue synergies, enhancing the company's financial performance.

Market Positioning

FLS is well positioned for growth across most of its end markets, particularly in power and select energy transition work.

Negative Factors

Integration Challenges

There is some investor concern over potential distractions arising from the FLS/GTLS integration.

Operational Execution

The key will be investor confidence in operational execution as a larger, more complex business.

Flowserve Business Overview & Revenue Model

Company Description

Flowserve Corporation (FLS) is a leading provider of flow control products and services for various industries, including oil and gas, power generation, water management, and chemical processing. The company specializes in the manufacturing of pumps, valves, seals, and other related products that are essential for the safe and efficient movement of fluids. Flowserve operates globally, delivering innovative solutions that enhance operational efficiency and sustainability for its customers.

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 demonstrates strong financial performance with consistent revenue and profit growth, effective cost control, and solid operational efficiency. The balance sheet is stable with reduced leverage, and cash flows are robust despite some volatility.

Income Statement

Flowserve has demonstrated strong revenue growth with a positive trajectory, achieving a revenue growth rate of 6.8% from 2023 to 2024 and a further increase in the TTM period. The gross profit margin is healthy at approximately 32.1% TTM, indicating effective cost control. The net profit margin is stable around 6.1% TTM, showing consistent profitability. EBIT margin of 10.7% and EBITDA margin of 12.1% TTM highlight solid operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.11 TTM, significantly reduced from previous years, indicating lower financial leverage and improved risk profile. Return on Equity (ROE) stands at 13.6% TTM, suggesting efficient use of equity capital to generate profits. The equity ratio of 37.9% TTM demonstrates a balanced approach to funding with a strong equity base.

Cash Flow

Flowserve's cash flow performance shows a positive trend with a free cash flow to net income ratio of 0.83 TTM, indicating robust cash generation relative to profits. The operating cash flow to net income ratio of 1.11 TTM suggests strong cash flow coverage. The free cash flow growth rate, however, shows a decrease from 2023 to TTM, highlighting potential volatility in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.56B	4.32B	3.62B	3.54B	3.73B
Gross Profit	1.43B	1.30B	994.29M	1.05B	1.12B
EBITDA	541.05M	374.42M	291.58M	385.19M	351.06M
Net Income	282.76M	186.74M	188.69M	125.95M	130.42M
Balance Sheet
Total Assets	5.50B	5.11B	4.79B	4.75B	5.31B
Cash, Cash Equivalents and Short-Term Investments	675.44M	545.68M	434.97M	658.45M	1.10B
Total Debt	1.69B	1.40B	1.46B	1.50B	1.94B
Total Liabilities	3.45B	3.13B	2.93B	2.91B	3.55B
Stockholders Equity	2.01B	1.94B	1.82B	1.80B	1.73B
Cash Flow
Free Cash Flow	344.29M	258.41M	-116.30M	195.18M	253.13M
Operating Cash Flow	425.31M	325.77M	-40.01M	250.12M	310.54M
Investing Cash Flow	-387.21M	-68.58M	-6.09M	-59.48M	-41.70M
Financing Cash Flow	117.50M	-153.01M	-150.01M	-599.71M	147.59M

Flowserve Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.97
• 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 53.97 is below the 20-day moving average (MA) of 54.16, above the 50-day MA of 51.72, and above the 200-day MA of 53.42, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 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
ITT	79 Outperform	$13.26B	26.72	20.17%	0.78%	6.69%	21.44%
SPXC	78 Outperform	$8.94B	42.88	15.02%	―	8.90%	29.18%
FLS	77 Outperform	$6.95B	24.11	13.91%	1.56%	3.15%	14.18%
GTES	74 Outperform	$6.30B	32.56	6.31%	―	-2.67%	-17.55%
GTLS	72 Outperform	$8.94B	36.85	9.09%	―	8.94%	137.02%
MIR	67 Neutral	$5.22B	543.73	0.67%	―	7.88%	―
Sector *	63 Neutral	$10.81B	16.63	8.01%	2.06%	2.20%	-16.81%

Flowserve Corporate Events

Flowserve Receives $266M After Merger Termination

On July 28, 2025, Flowserve Corporation announced the termination of its merger agreement with Chart Industries, following Chart’s acceptance of a superior proposal from Baker Hughes. As a result, Flowserve will receive a $266 million termination payment from Chart. The termination reflects Flowserve’s commitment to financial discipline and confidence in its standalone growth prospects, driven by its 3D growth strategy and robust demand for its flow control solutions.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Announces Strong Q2 2025 Financial Results

On July 29, 2025, Flowserve Corporation announced its strong financial results for the second quarter of 2025, showcasing solid bookings, improved margins, and increased earnings per share. The company highlighted the successful execution of its 3D Growth Strategy and the Flowserve Business System, which contributed to enhanced earnings and operational performance. Flowserve also updated its full-year 2025 earnings guidance, reflecting confidence in its business model and strategic initiatives. Additionally, Flowserve terminated its merger agreement with Chart Industries, Inc., opting to receive a $266 million termination payment after Chart accepted a superior proposal from Baker Hughes.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Announces Merger Agreement with Chart Industries

On June 3, 2025, Flowserve Corporation and Chart Industries announced a merger agreement to combine in an all-stock merger of equals, creating a leader in industrial process technologies. The merger, expected to close in the fourth quarter of 2025, aims to enhance the combined company’s market position with a global platform serving diverse high-growth markets. The merger is anticipated to generate significant cost synergies and be accretive to adjusted EPS in the first year, benefiting shareholders and stakeholders with a robust financial profile and expanded service capabilities.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve Holds 2025 Annual Meeting with Key Decisions

On May 16, 2025, Flowserve held its virtual 2025 Annual Meeting with 114,371,672 shares present, representing 86.86% of eligible shares. During the meeting, shareholders elected directors for terms expiring in 2026, approved executive compensation, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and rejected a proposal to eliminate the one-year holding period requirement for calling a special shareholder meeting.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.