Flowserve (FLS) AI Stock Analysis

• Market Cap: $7.24B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.47
• Revenue Growth: 3.15%
• EPS Growth: 14.18%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 130,782,240
• 10 Day Avg. Volume: 2,822,212
• 30 Day Avg. Volume: 1,872,528
• 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: 1.10
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 14.57
• 1Y Price Target: $66.63
• Price Target Upside: 23.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $60.00 ▲(11.01% Upside)

Flowserve's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by valuation concerns and mixed technical indicators. The company's robust revenue growth and effective cost management are significant strengths, while the high P/E ratio and recent merger termination present potential risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Flowserve's products and services, supporting long-term market position and financial health.

Aftermarket Business Success

Strong aftermarket performance enhances product lifecycle management and provides a stable revenue stream, reinforcing customer relationships and market presence.

Cash Flow Strength

Robust cash flow generation supports ongoing investments and shareholder returns, ensuring financial flexibility and operational resilience.

Negative Factors

Merger Termination

The termination of the merger with Chart Industries may limit strategic growth opportunities and potential synergies, impacting long-term expansion plans.

Challenges with Mogas Acquisition

Integration challenges with Mogas could strain operational efficiency and margin sustainability, affecting profitability and competitive positioning.

Project Booking Delays

Booking delays in key sectors due to macroeconomic uncertainty can hinder revenue growth and project pipeline, affecting future financial performance.

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 notable revenue growth, stable profit margins, and efficient cash flow generation. The balance sheet is robust with effective debt management, though asset utilization could be improved.

Income Statement

Flowserve demonstrates strong revenue growth with a 7.5% increase from 2023 to TTM (Trailing-Twelve-Months). Gross and net profit margins are stable at 32.5% and 6.3% respectively in TTM, indicating effective cost management and profitability. EBIT and EBITDA margins are also healthy, reflecting strong operational efficiency. Overall, the company shows robust financial performance with consistent improvement in profitability metrics.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 39.1% in TTM, although there is a notable reduction in debt levels, resulting in a low debt-to-equity ratio of 0.10. Return on Equity (ROE) stands at a reasonable 13.1%, highlighting satisfactory returns to shareholders. The company's financial stability is reinforced by efficient debt management and a strong equity base, though improvements in asset utilization could enhance returns.

Cash Flow

Flowserve's cash flow metrics are commendable, with a strong free cash flow growth rate of 15.9% in TTM, demonstrating robust cash generation capabilities. The operating cash flow to net income ratio of 1.65 and a free cash flow to net income ratio of 1.37 indicate efficient cash conversion. Despite substantial capital expenditures, the company maintains a healthy cash flow position, supporting ongoing investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65B	4.56B	4.32B	3.62B	3.54B	3.73B
Gross Profit	1.52B	1.47B	1.30B	994.29M	1.07B	1.12B
EBITDA	548.05M	541.05M	374.42M	291.58M	385.19M	351.06M
Net Income	291.58M	282.76M	186.74M	188.69M	125.95M	130.42M
Balance Sheet
Total Assets	5.68B	5.50B	5.11B	4.79B	4.75B	5.31B
Cash, Cash Equivalents and Short-Term Investments	629.20M	675.44M	545.68M	434.97M	658.45M	1.10B
Total Debt	227.15M	1.69B	1.40B	1.46B	1.50B	1.94B
Total Liabilities	3.40B	3.45B	3.13B	2.93B	2.91B	3.55B
Stockholders Equity	2.22B	2.01B	1.94B	1.82B	1.80B	1.73B
Cash Flow
Free Cash Flow	398.98M	344.29M	258.41M	-116.30M	195.18M	253.13M
Operating Cash Flow	480.05M	425.31M	325.77M	-40.01M	250.12M	310.54M
Investing Cash Flow	-384.60M	-387.21M	-68.58M	-6.09M	-59.48M	-41.70M
Financing Cash Flow	-266.00K	117.50M	-153.01M	-150.01M	-599.71M	147.59M

Flowserve Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.05
• 50DMA: Negative
• 100DMA: Positive
• 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 54.05 is below the 20-day moving average (MA) of 55.30, below the 50-day MA of 54.29, and above the 200-day MA of 52.74, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 5.34 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	79 Outperform	13.79B	27.54	20.24%	0.78%	6.69%	21.44%
SPXC	78 Outperform	9.04B	40.89	13.74%	―	8.90%	29.18%
PNR	76 Outperform	17.99B	29.58	16.59%	0.89%	-0.25%	-7.32%
DOV	74 Outperform	23.04B	9.98	30.81%	1.23%	-8.23%	54.92%
FLS	72 Outperform	$7.24B	25.11	13.91%	1.55%	3.15%	14.18%
RRX	64 Neutral	9.55B	37.49	3.74%	0.97%	-7.88%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.

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.