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Flexible Solutions International Inc. (FSI)
:FSI
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Flexible Solutions International (FSI) AI Stock Analysis

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FSI

Flexible Solutions International

(NYSE MKT:FSI)

Rating:72Outperform
Price Target:
$12.00
▲(6.67% Upside)
Flexible Solutions International's stock score is driven by strong technical momentum and positive earnings call highlights, including revenue growth and strategic expansions. However, financial performance challenges and high valuation metrics temper the overall score.

Flexible Solutions International (FSI) vs. SPDR S&P 500 ETF (SPY)

Flexible Solutions International Business Overview & Revenue Model

Company DescriptionFlexible Solutions International (FSI) is a Canadian-based company specializing in the development and marketing of environmentally friendly and innovative specialty chemicals. The company operates primarily in the water treatment, oil and gas, and agricultural sectors, providing solutions that enhance efficiency and sustainability. FSI's core products include water treatment polymers, thermal gel products, and various biodegradable chemicals designed to reduce environmental impact while improving operational performance for its clients.
How the Company Makes MoneyFSI generates revenue through the sale of its specialty chemical products to various industries, including municipal water treatment plants, oil and gas companies, and agricultural sectors. The company's revenue model is primarily based on product sales, with recurring revenue from long-term contracts and partnerships with municipalities and large industrial clients. Additionally, FSI benefits from research and development collaborations that lead to new product innovations, which can open up new markets and increase sales. The company also engages in strategic partnerships that enhance its distribution capabilities and market reach, further contributing to its earnings.

Flexible Solutions International Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were significant achievements in terms of revenue growth, profit increase, and securing major contracts, there are ongoing challenges with tariffs, agricultural market pressures, and dependency on non-recurring R&D revenue. The expansion into Panama offers potential for future growth by mitigating some tariff issues.
Q2-2025 Updates
Positive Updates
Revenue Growth
Sales for the quarter increased by 8% compared to 2024, reaching $11.37 million versus $10.53 million.
Profit Increase
Q2 2025 recorded a profit of $2.03 million or $0.16 per share, compared to $1.29 million or $0.10 per share in Q2 2024.
Successful Food Grade Contracts
Secured a 5-year food grade contract with a minimum revenue of $6.5 million per year and a potential maximum of over $25 million per year.
Panama Plant Development
A new agriculture and polymer facility in Panama is set to begin production in Q3 2025, reducing exposure to U.S. tariffs and shipping times.
Debt Reduction
The loan for the ENP division was paid in full on June 30, with a 3-year equipment note set to be fully paid by December 2025.
Negative Updates
Agriculture Sales Weakness
Agriculture sales are under pressure due to low crop prices and tariff changes, with some sales lost for the entire season.
Tariff Challenges
Current tariffs on imports from China range from 30% to 58%, affecting costs and customer pricing.
Lower Margins in Food Division
Lower margins of 22% to 25% before tax in the Food division due to tariff and inflation protection clauses in contracts.
Dependency on R&D Revenue
Recorded $2.5 million in R&D revenue, which contributed significantly to the profit, indicating reliance on non-recurring income.
Company Guidance
During the Flexible Solutions International Second Quarter 2025 Financials Conference Call, CEO Dan O'Brien provided comprehensive guidance, highlighting both current performance and future expectations. The NanoChem division, responsible for approximately 70% of the company's revenue, continues to drive significant business with its thermal polyaspartic acid (TPA) and nitrogen conservation products. The company's focus on expanding its food division was underscored by two major food-grade contracts, promising a minimum annual revenue of $6.5 million and a potential maximum exceeding $25 million. To support these contracts, Flexible Solutions plans to invest around $4 million in capital expenditures (CapEx) for plant and equipment improvements, with production anticipated to begin in Q4 2025. The company also reported an 8% increase in sales compared to the previous year, amounting to $11.37 million, with Q2 profits reaching $2.03 million, buoyed by $2.5 million in R&D revenue. Despite facing challenges in the agriculture sector due to tariffs and market uncertainties, the strategic transition of production to a new facility in Panama aims to mitigate tariff impacts and bolster international sales. O'Brien emphasized the company's commitment to executing its growth plans without the need for equity financing, maintaining adequate working capital and leveraging existing credit lines to support expansion efforts.

Flexible Solutions International Financial Statement Overview

Summary
Flexible Solutions International demonstrates solid profitability with strong gross and net profit margins, and a robust balance sheet with low leverage. However, challenges include a decline in revenue growth and Return on Equity, which need attention for sustained growth.
Income Statement
75
Positive
The company exhibits strong gross and net profit margins with a Gross Profit Margin of 33.9% and a Net Profit Margin of 6.3% in TTM (Trailing-Twelve-Months). However, the revenue growth rate has declined by 4.6% from the previous year, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins are healthy at 13.3% and 18.2% respectively, demonstrating efficient cost control.
Balance Sheet
70
Positive
The balance sheet shows a solid financial position with a low Debt-to-Equity Ratio of 0.04, indicating low leverage. The Equity Ratio is also robust at 62.3%, suggesting a strong capital base. However, Return on Equity (ROE) has decreased to 6.0% in TTM, reflecting lower profitability relative to equity.
Cash Flow
68
Positive
Free Cash Flow has grown significantly by 108.7% in TTM, showing improved cash generation. The Operating Cash Flow to Net Income Ratio stands at 2.4, indicating strong cash flow relative to earnings. Free Cash Flow to Net Income Ratio is positive at 0.5, but the reliance on operating cash flow highlights the need for sustainable cash management strategies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.32M38.23M38.32M45.84M34.42M31.41M
Gross Profit13.82M13.24M10.34M13.87M11.40M9.77M
EBITDA7.81M5.52M5.86M9.48M8.08M6.64M
Net Income3.04M3.04M2.78M7.02M3.45M2.98M
Balance Sheet
Total Assets58.23M59.97M55.47M51.59M39.55M35.09M
Cash, Cash Equivalents and Short-Term Investments10.00M10.03M7.71M6.82M6.74M4.47M
Total Debt8.24M10.81M10.04M9.14M4.88M6.45M
Total Liabilities15.65M18.60M17.20M16.35M11.85M11.32M
Stockholders Equity39.37M38.03M35.20M32.63M25.10M21.21M
Cash Flow
Free Cash Flow-1.39M603.61K2.00M-504.40K3.75M4.63M
Operating Cash Flow3.24M5.57M6.99M1.48M4.54M5.71M
Investing Cash Flow-845.28K-2.45M-5.67M-2.22M-659.54K-3.22M
Financing Cash Flow-2.00M-978.33K-437.95K848.33K-1.71M-2.70M

Flexible Solutions International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.25
Price Trends
50DMA
6.19
Positive
100DMA
5.12
Positive
200DMA
4.95
Positive
Market Momentum
MACD
1.21
Negative
RSI
86.60
Negative
STOCH
94.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSI, the sentiment is Positive. The current price of 11.25 is above the 20-day moving average (MA) of 7.52, above the 50-day MA of 6.19, and above the 200-day MA of 4.95, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 86.60 is Negative, neither overbought nor oversold. The STOCH value of 94.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSI.

Flexible Solutions International Risk Analysis

Flexible Solutions International disclosed 15 risk factors in its most recent earnings report. Flexible Solutions International reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Flexible Solutions International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$137.07M46.428.06%-1.52%6.38%
67
Neutral
$69.87M24.794.18%2.16%3.46%-34.80%
61
Neutral
$10.32B6.250.71%2.93%3.36%-36.41%
54
Neutral
$71.10M-406.97%8400.76%31.02%
52
Neutral
$24.42M-119.89%36.89%91.74%
48
Neutral
$9.45M-17.63%-15.26%73.10%
48
Neutral
$87.46M-28.22%-12.70%-74.32%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSI
Flexible Solutions International
11.25
8.01
247.22%
GURE
Gulf Resources
0.72
-0.32
-30.77%
NTIC
Northern Technologies International
7.40
-5.49
-42.59%
ALTO
Alto Ingredients
1.13
-0.24
-17.52%
SNES
SenesTech
4.94
1.95
65.22%
LOOP
Loop Industries
1.49
-0.08
-5.10%

Flexible Solutions International Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Flexible Solutions Secures Lucrative Food Grade Contract
Positive
Aug 15, 2025

On August 11, 2025, Flexible Solutions International announced a new food grade contract for its Illinois plant, expected to generate between $6.5 million and $13 million annually. The contract, which includes a five-year term and provisions for expansion, is part of the company’s strategy to potentially double its revenue in the next 18 months by increasing its presence in the food grade production market.

Business Operations and StrategyFinancial Disclosures
Flexible Solutions Reports Strong Q2 2025 Financial Results
Positive
Aug 15, 2025

On August 14, 2025, Flexible Solutions International announced its financial results for the second quarter ending June 30, 2025, reporting an 8% increase in sales compared to the same period in 2024. Despite challenges such as tariff increases and soft sales, the company achieved a net income of $2,028,912, up from $1,289,796 in the previous year, driven by research and development services sales. The company is progressing with its strategic plan to move legacy production to Panama and expand its food-grade business in Illinois, with the NanoChem division and ENP subsidiary remaining key revenue sources.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025