Flowserve (FLS) AI Stock Analysis

• Market Cap: $6.98B
• Dividend Yield: 1.6%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.51
• Revenue Growth: 3.15%
• EPS Growth: 14.18%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.90
• Shares Outstanding: 130,782,240
• 10 Day Avg. Volume: 1,561,057
• 30 Day Avg. Volume: 1,985,772
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $68.00
• Price Target Upside: 29.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $59.00 ▲(12.04% Upside)

Flowserve's strong financial performance and positive earnings call sentiment are significant strengths, supporting a robust outlook. However, technical indicators suggest neutral momentum, and valuation metrics indicate the stock is fairly valued. Challenges related to the Mogas acquisition and merger termination present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Flowserve's products and services, supporting long-term business expansion and market presence.

Aftermarket Business Success

Sustained aftermarket success enhances product lifecycle value, providing a stable revenue stream and strengthening customer relationships.

Operational Excellence

Operational improvements through the 80/20 framework enhance efficiency, leading to better margins and competitive positioning in the market.

Negative Factors

Merger Termination

The merger termination with Chart Industries removes a potential growth catalyst, impacting strategic expansion plans and future synergies.

Challenges with Mogas Acquisition

Integration issues with Mogas affect operating margins, highlighting potential risks in acquisition strategy and operational execution.

Project Booking Delays

Booking delays due to macroeconomic factors can hinder revenue growth and project pipeline, impacting long-term business stability.

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: Positive
• Last Price: 52.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 52.66 is above the 20-day moving average (MA) of 51.78, below the 50-day MA of 53.48, and above the 200-day MA of 52.05, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 81.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLS.

Flowserve Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNR	―	$17.96B	27.84	17.97%	0.92%	0.83%	-1.32%
ITT	―	$13.72B	27.65	20.17%	0.78%	6.69%	21.44%
DOV	―	$24.65B	11.05	15.88%	1.15%	-5.24%	45.69%
FLS	―	$6.98B	24.21	13.91%	1.60%	3.15%	14.18%
SPXC	―	$9.74B	44.04	15.02%	―	8.90%	29.18%
RRX	―	$9.61B	38.47	3.84%	0.99%	-7.88%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Flowserve Corporate Events

Flowserve Announces Leadership Change in Flow Control Division

On September 17, 2025, Flowserve Corporation announced the resignation of Kirk Wilson as President of its Flow Control Division, effective October 13, 2025. Alice DeBiasio, who has extensive experience in leading global industrial organizations, will succeed him. Wilson will remain as a senior advisor until January 9, 2026, to aid in the transition. This leadership change is expected to leverage DeBiasio’s expertise in digital transformation and global industrial management to drive Flowserve’s sustained, profitable growth and enhance shareholder value.

The most recent analyst rating on (FLS) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

Flowserve’s Earnings Call: Strong Q2 and Strategic Moves

Flowserve’s recent earnings call painted a picture of robust performance and strategic foresight, despite some challenges. The company reported a strong second quarter, with increased guidance and a thriving aftermarket business. However, the impacts of the Mogas acquisition and project delays in energy and chemical markets due to macroeconomic conditions and tariffs were noted as significant hurdles.

Flowserve Corporation Reports Strong Q2 2025 Results

Flowserve Corporation is a leading provider of flow control products and services, catering to the global infrastructure markets with a focus on engineered and industrial pumps, seals, and valves. The company operates in more than 50 countries, offering a comprehensive range of flow management services.

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.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.

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.

The most recent analyst rating on (FLS) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Flowserve stock, see the FLS Stock Forecast page.