Flowserve (FLS) AI Stock Analysis

• Market Cap: $5.91B
• Dividend Yield: 1.87%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.31
• Revenue Growth: 5.49%
• EPS Growth: 51.02%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 2.14
• Shares Outstanding: 130,728,620
• 10 Day Avg. Volume: 1,871,129
• 30 Day Avg. Volume: 1,729,265
• PEG Ratio: 0.41
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.33
• Price Target Upside: 30.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Flowserve's strong financial performance, highlighted by revenue growth and operational efficiency, is a key strength. However, technical analysis indicates bearish momentum, slightly tempering the score. Valuation is moderate, and while the earnings call shows promising growth, external economic pressures are notable challenges. Overall, the stock is well-positioned for future growth but faces short-term headwinds.

Positive Factors

Financial Performance

The company's earnings power and trajectory are attractive, with a compelling internally-fueled margin expansion story.

Market Position

FLS is a major beneficiary of the global energy transition story and the need to invest materially in power capacity for broad electrification and datacenter trends.

Operational Efficiency

The 80/20 program is progressing and expected to increase margins without negatively impacting the top line.

Negative Factors

Earnings Miss

Flowserve’s 4Q24 adjusted EPS missed our estimate and consensus on below-the-line items, notably for the second quarter in a row.

Earnings Report

Fourth-quarter earnings per share was below expectations.

Revenue Expectations

Revenue came in light of expectations in the quarter and guidance for +3-5% y/y was below the expectations of investors.

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 widely recognized brands of pumps, valves, seals, and associated services. The company's financial model relies on a combination of product sales, aftermarket services, and customer support. Significant revenue streams include the manufacture and sale of engineered and industrial products to end-users and distributors, as well as providing maintenance, repair, and engineering services. Flowserve's earnings are bolstered by long-term service agreements and a strong aftermarket business that supports a large installed base of equipment. Key partnerships with industry leaders and strategic acquisitions also play a vital role in expanding its market reach and enhancing its technological capabilities.

Flowserve Financial Statement Overview

Summary

Flowserve presents a robust financial position with steady revenue and profit growth, improved profitability margins, and strong cash flow generation. The balance sheet reflects a solid equity base with reduced leverage, enhancing financial stability. While liabilities have increased, the company's operational efficiency and cash management remain strong, positioning it well for future growth in the industrial goods sector.

Income Statement

Flowserve has demonstrated strong revenue growth with a 5.48% increase from 2023 to 2024, and a substantial 19.51% increase from 2022 to 2023. Gross profit margins have been consistently healthy, maintaining around 31.5% in 2024. Net profit margins showed improvement, growing from 4.32% in 2023 to 6.20% in 2024, indicating enhanced profitability. The EBIT margin also improved significantly to 10.14% in 2024. However, the EBITDA margin in 2024 remains consistent with the EBIT margin, indicating stable operational efficiency. Overall, the income statement reflects solid profitability and growth trends.

Balance Sheet

The company has maintained a moderate debt-to-equity ratio, improving from 0.73 in 2023 to 0.11 in 2024, reflecting reduced leverage. The ROE improved to 14.09% in 2024, signaling effective utilization of equity to generate profit. The equity ratio stands at 36.49% in 2024, indicating a stable financial structure. However, the total liabilities have increased over time, which should be monitored for potential risks.

Cash Flow

Flowserve's free cash flow showed a robust growth of 33.19% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio improved significantly, demonstrating effective cash management. The free cash flow to net income ratio increased to 1.22 in 2024, reflecting a healthy conversion of profits into cash. These metrics illustrate strong cash flow management and operational efficiency.

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
	EBIT
462.28M	333.55M	197.22M	270.76M	250.28M
	EBITDA
541.05M	374.42M	291.58M	385.19M	351.06M
	Net Income Common Stockholders
282.76M	186.74M	188.69M	125.95M	130.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
675.44M	545.68M	434.97M	658.45M	1.10B
	Total Assets
5.50B	5.11B	4.79B	4.75B	5.31B
	Total Debt
227.46M	1.40B	1.46B	1.50B	1.94B
	Net Debt
-447.99M	858.92M	1.03B	843.79M	842.87M
	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: Neutral
• Last Price: 46.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLS, the sentiment is Neutral. The current price of 46.16 is above the 20-day moving average (MA) of 42.98, below the 50-day MA of 47.94, and below the 200-day MA of 52.87, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 86.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLS.

Flowserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	78 Outperform	$6.28B	31.33	15.65%	―	13.94%	37.49%
ITT	76 Outperform	$11.09B	21.76	19.60%	0.95%	10.59%	27.04%
FLS	73 Outperform	$5.91B	21.17	14.34%	1.87%	5.49%	51.02%
GTLS	73 Outperform	$6.07B	32.52	7.91%	―	23.86%	740.71%
GTES	71 Outperform	$4.88B	25.65	6.26%	―	-4.54%	-13.20%
MIR	71 Outperform	$3.65B	―	-0.68%	―	7.25%	87.34%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%

Flowserve Corporate Events

Flowserve Reports Strong Q1 2025 Financial Results

Flowserve Corporation reported its financial results for the first quarter of 2025, showing a strong start to the year with significant growth in bookings and operating income. The company achieved first quarter bookings of $1.2 billion, with record aftermarket bookings and a notable increase in power bookings. Operating income rose by 17% compared to the previous year, and the company reaffirmed its full-year 2025 guidance, despite global uncertainties due to increasing tariffs.

Spark’s Take on FLS Stock

According to Spark, TipRanks’ AI Analyst, FLS is a Neutral.

Flowserve demonstrates strong financial performance with robust profitability and cash flow management, supported by positive earnings call highlights. However, technical analysis indicates bearish momentum with the stock trading below key moving averages, which slightly tempers the score. The valuation is moderate, offering a balanced view of income potential. Despite some market challenges, the company’s strategic initiatives position it well for future growth, resulting in a solid overall score.

To see Spark’s full report on FLS stock, click here.

Flowserve Reports Strong Q4 and Full-Year Results

Flowserve Corporation reported robust financial results for the fourth quarter and full year ending December 31, 2024, with key highlights including a 12.6% increase in bookings and a significant rise in operating income and cash flow. The company’s strategic initiatives, including the 3D strategy and Flowserve Business System, have driven sales and earnings growth, positioning Flowserve for continued momentum and long-term value creation for stakeholders in 2025.

Flowserve Updates Board Structure After Director Resignation

On February 6, 2025, Flowserve Corporation’s Board of Directors accepted Carlyn R. Taylor’s resignation from her director position due to her new role as CEO of Sirva Worldwide, Inc. Her departure was amicable and not due to any disagreements with Flowserve. The company expressed appreciation for her contributions. The following day, on February 7, 2025, the Board amended the company’s Bylaws to reduce the number of directors from eleven to ten, reflecting this change in leadership structure.