Flexible Solutions International (FSI) AI Stock Analysis

• Market Cap: $87.45M
• Dividend Yield: N/A
• Average Volume (3M): 48.17K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 1.65
• Revenue Growth: 0.18%
• EPS Growth: -54.25%
• Country: US
• Employees: 45
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.04
• Shares Outstanding: 12,692,498
• 10 Day Avg. Volume: 29,128
• 30 Day Avg. Volume: 48,173
• PEG Ratio: 1.63
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 74.49
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 9.88
• Enterprise Value/Ebitda: 12.45
• 1Y Price Target: $11.00
• Price Target Upside: 62.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $8.50 ▲(25.37% Upside)

Flexible Solutions International's overall stock score is driven by solid financial performance and positive earnings call guidance. However, technical analysis indicates bearish momentum, and the high valuation suggests limited upside potential. Addressing cash flow challenges and achieving projected profitability improvements are crucial for future growth.

Positive Factors

New Food Grade Contracts

The new long-term contract ensures a stable revenue stream, enhancing financial predictability and supporting future growth.

Panama Factory Completion

The new factory will reduce shipping times and eliminate tariffs, improving cost efficiency and expanding international sales.

Debt Reduction

Reducing debt obligations enhances cash flow and financial flexibility, supporting long-term operational stability.

Negative Factors

Quarterly Loss

The quarterly loss indicates financial strain from new contracts and factory costs, which could impact short-term profitability.

Weakness in Traditional Row Crop Agriculture

Ongoing weakness in the agricultural sector may limit revenue growth, affecting the company's performance in this segment.

Tariff Challenges

High tariffs on imports from China continue to pressure margins, potentially reducing profitability and competitiveness.

Flexible Solutions International Business Overview & Revenue Model

Company Description

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. Flexible Solutions International, Inc. is headquartered in Taber, Canada.

How the Company Makes Money

Flexible Solutions International generates revenue primarily through the sale of its proprietary biodegradable products and solutions. The company has established key revenue streams from its diverse product lines, which include water treatment chemicals, oil recovery agents, and agricultural additives. FSI's business model is focused on both direct sales to end-users and partnerships with distributors and industry-specific companies. Significant partnerships with organizations in the water treatment and agricultural sectors further contribute to its earnings by expanding its market reach and creating opportunities for joint marketing initiatives. Additionally, FSI benefits from the increasing global emphasis on sustainability, which drives demand for its eco-friendly products.

Flexible Solutions International Financial Statement Overview

Summary

Flexible Solutions International shows solid financial health with strong profitability and a stable balance sheet. However, cash flow challenges, such as negative free cash flow and moderate cash conversion efficiency, need addressing to ensure long-term sustainability.

Income Statement

Flexible Solutions International shows a stable income statement with a consistent revenue growth rate of 3.33% TTM, indicating positive momentum. The gross profit margin of 37.02% and net profit margin of 8.15% TTM reflect solid profitability. However, the slight decline in gross profit compared to previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.21 TTM, indicating prudent financial leverage. The return on equity of 7.97% TTM is moderate, suggesting efficient use of equity capital. However, the equity ratio of 66.77% TTM shows a strong equity base, enhancing financial stability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow and a free cash flow to net income ratio of -0.43 TTM, indicating cash generation issues. The operating cash flow to net income ratio of 0.35 TTM suggests moderate cash conversion efficiency. Despite a significant improvement in free cash flow growth, cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.56M	38.23M	38.32M	45.84M	34.42M	31.41M
Gross Profit	12.53M	13.24M	10.34M	13.87M	11.40M	9.77M
EBITDA	9.95M	5.52M	5.86M	9.48M	8.08M	6.64M
Net Income	4.70M	3.04M	2.78M	7.02M	3.45M	2.98M
Balance Sheet
Total Assets	58.35M	59.97M	55.47M	51.59M	39.55M	35.09M
Cash, Cash Equivalents and Short-Term Investments	9.87M	10.03M	7.71M	6.82M	6.74M	4.47M
Total Debt	7.64M	10.81M	10.04M	9.14M	4.88M	6.45M
Total Liabilities	15.36M	18.60M	17.20M	16.35M	11.85M	11.32M
Stockholders Equity	38.97M	38.03M	35.20M	32.63M	25.10M	21.21M
Cash Flow
Free Cash Flow	-2.35M	603.61K	2.00M	-504.40K	3.75M	4.63M
Operating Cash Flow	3.05M	5.57M	6.99M	1.48M	4.54M	5.71M
Investing Cash Flow	-2.37M	-2.45M	-5.67M	-2.22M	-659.54K	-3.22M
Financing Cash Flow	-3.08M	-978.33K	-437.95K	848.33K	-1.71M	-2.70M

Flexible Solutions International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSI, the sentiment is Negative. The current price of 6.78 is below the 20-day moving average (MA) of 6.81, below the 50-day MA of 7.92, and above the 200-day MA of 6.41, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSI.

Flexible Solutions International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMT	65 Neutral	$177.48M	22.49	5.32%	―	-16.59%	-47.02%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$87.45M	46.63	5.08%	―	0.18%	-54.25%
ALTO	54 Neutral	$189.49M	-3.74	-20.64%	―	-8.00%	-35.86%
LOOP	47 Neutral	$44.20M	-3.65	―	―	11013.00%	39.85%
NTIC	44 Neutral	$74.04M	4,338.89	0.02%	1.29%	-0.97%	-99.67%
TSE	44 Neutral	$17.40M	-0.04	―	8.00%	-11.20%	17.76%

Flexible Solutions International Corporate Events

Flexible Solutions Reports Q3 2025 Financial Results

Flexible Solutions International announced its financial results for the third quarter of 2025, reporting a 13% increase in sales compared to the same period in 2024, with revenues reaching $10.56 million. Despite this growth, the company experienced a net loss of $503,358 due to higher costs and significant expenses related to new production contracts and equipment installations in Panama and Illinois. The company’s NanoChem division and ENP subsidiary remain key revenue sources, and new opportunities are emerging in various sectors, including food and nutrition supplements.