About Flowserve Corporation
Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Flowserve Pumps Division (FPD) and Flow Control Division (FCD). It offers custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems, replacement parts, and related services; and manufactures gas-lubricated mechanical seals for gas pipelines and in the energy production and process markets. The company also provides equipment services, including installation, commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions. In addition, it offers engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related services and equipment; and actuators, positioners, and switches used to control, direct and manage the flow of liquids, gases and multi-phase fluids, and are a part of any flow control system. Further, the company provides equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. It sells its products under the Valtek, Argus, Worcester, Limitorque, and Durco brands. The company serves oil and gas, power generation, chemical, water management and general industries, including pharmaceuticals, mining, food and beverage, steel, and pulp and paper industries. It distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was founded in 1790 and is headquartered in Irving, Texas.
Flowserve Corporation (FLS) is a Industrials company in the Specialty Industrial Machinery industry with a market capitalisation of $8.7B. The stock trades at 25.07x trailing earnings and yields 1.3%.
- Sector
- Industrials
- Industry
- Specialty Industrial Machinery
- Market cap
- $8.7B
- P/E ratio
- 25.07
- Forward P/E
- 14.75
- EPS (TTM)
- $2.72
- Revenue (TTM)
- $4.6B
- Free cash flow
- $428.3M
- Profit margin
- 8.0%
- Dividend yield
- 1.3%
- Beta
- 1.25
- Shares outstanding
- 127.8M
Financial health: Fair7.3/10
6 strengths, 1 concern. Weakest points: revenue growth.
- Debt to equity: 0.70 (Watch, benchmark < 0.5) — Debt of 0.70x equity is moderate against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 1.8y (Strong, benchmark < 4 years) — Net debt of $765.0M is 1.8x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 2.03 (Strong, benchmark > 1.5) — Short-term assets cover 2.03x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 16.9% (Strong, benchmark > 15%) — Earns 16.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 35.1% (Watch, benchmark > 40%) — Keeps 35.1% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 8.0% (Watch, benchmark > 10%) — Turns 8.0% of revenue into profit, short of the > 10% mark.
- Free cash flow: $435.0M (Strong, benchmark positive) — Generated $435.0M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: -1.6% (Concern, benchmark > 10%) — Revenue changed -1.6% year on year, well short of the > 10% mark.
- Earnings growth: 24.2% (Strong, benchmark > 10%) — Earnings changed 24.2% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.63 (Watch, benchmark < 1) — At 1.63, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 30.0% (Strong, benchmark < 60%) — Pays out 30.0% of earnings as dividends, leaving room to keep paying.