Flowserve (FLS) AI Stock Analysis

• Market Cap: $6.08B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.34
• Revenue Growth: 4.23%
• EPS Growth: 20.40%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.72
• Shares Outstanding: 130,769,650
• 10 Day Avg. Volume: 3,474,292
• 30 Day Avg. Volume: 1,933,261
• PEG Ratio: 0.44
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.46
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $62.75
• Price Target Upside: 35.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $53.00 ▲(14.08%Upside)

Flowserve's strong financial performance and strategic initiatives, such as the merger with Chart Industries, are major positives. However, technical indicators suggest caution in the short term, and valuation metrics indicate the stock might be slightly overvalued. The company's guidance and efforts to address external challenges provide a balanced outlook.

Positive Factors

Demand Resilience

Demand should prove resilient, supported by energy security themes, long-deferred MRO, growing power demand, and expanding application base.

Financial Performance

The combination of FLS and GTLS is expected to result in significant cost and revenue synergies, enhancing the company's financial performance.

Market Opportunities

The larger industrial process company is anticipated to better capitalize on secular tailwinds such as LNG and nuclear, along with expanding aftermarket opportunities.

Negative Factors

Earnings Performance

Fourth-quarter earnings per share was below expectations.

Operational Challenges

The key will be investor confidence in operational execution as a larger, more complex business.

Flowserve Business Overview & Revenue Model

Company Description

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve Pump Division (FPD) and Flow Control Division (FCD). The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines. The FCD segment provides engineered and industrial valve and automation solutions, including isolation and control valves, actuation, controls, and related equipment, as well as equipment maintenance services for flow control systems, including advanced diagnostics, repair, installation, commissioning, retrofit programs, and field machining capabilities. This segment's products are used to control, direct, and manage the flow of liquids, gases, and fluids. The company primarily serves oil and gas, chemical and pharmaceuticals, power generation, and water management markets, as well as general industries, including mining and ore processing, pulp and paper, food and beverage, and other smaller applications. The company distributes its products through direct sales, distributors, and sales representatives. Flowserve Corporation was incorporated in 1912 and is headquartered in Irving, Texas.

How the Company Makes Money

Flowserve makes money primarily through the sale of its engineered products and aftermarket services. The company's revenue streams include the manufacturing and distribution of industrial pumps, valves, seals, and related systems, which are essential for various industrial processes. Flowserve also generates significant income from its aftermarket services, offering maintenance, repair, and replacement parts to extend the lifecycle and efficiency of its products. Additionally, the company engages in partnerships and long-term contracts with major players in the oil and gas, chemical, and power industries, which contribute to its stable revenue base. The diversity of its product offerings and the essential nature of its services in critical industries underpin Flowserve's financial performance.

Flowserve Financial Statement Overview

Summary

Flowserve exhibits a strong financial performance with consistent revenue and profit growth, effective cost control, and operational efficiency. The balance sheet is stable with reduced leverage, and cash flows are robust despite some fluctuations.

Income Statement

Flowserve has demonstrated strong revenue growth with a positive trajectory, achieving a revenue growth rate of 6.8% from 2023 to 2024 and a further increase in the TTM period. The gross profit margin is healthy at approximately 32.1% TTM, indicating effective cost control. The net profit margin is stable around 6.1% TTM, showing consistent profitability. EBIT margin of 10.7% and EBITDA margin of 12.1% TTM highlight solid operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.11 TTM, significantly reduced from previous years, indicating lower financial leverage and improved risk profile. Return on Equity (ROE) stands at 13.6% TTM, suggesting efficient use of equity capital to generate profits. The equity ratio of 37.9% TTM demonstrates a balanced approach to funding with a strong equity base.

Cash Flow

Flowserve's cash flow performance shows a positive trend with a free cash flow to net income ratio of 0.83 TTM, indicating robust cash generation relative to profits. The operating cash flow to net income ratio of 1.11 TTM suggests strong cash flow coverage. The free cash flow growth rate, however, shows a decrease from 2023 to TTM, highlighting potential volatility in cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.61B	4.56B	4.32B	3.62B	3.54B	3.73B
	Gross Profit
1.48B	1.43B	1.30B	994.29M	1.05B	1.12B
	EBIT
494.51M	462.28M	333.55M	197.22M	270.76M	250.28M
	EBITDA
559.17M	541.05M	374.42M	291.58M	385.19M	351.06M
	Net Income Common Stockholders
282.44M	282.76M	186.74M	188.69M	125.95M	130.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
540.80M	675.44M	545.68M	434.97M	658.45M	1.10B
	Total Assets
5.48B	5.50B	5.11B	4.79B	4.75B	5.31B
	Total Debt
228.71M	1.69B	1.40B	1.46B	1.50B	1.94B
	Net Debt
-312.09M	1.01B	858.92M	1.03B	843.79M	842.87M
	Total Liabilities
3.35B	3.45B	3.13B	2.93B	2.91B	3.55B
	Stockholders Equity
2.08B	2.01B	1.94B	1.82B	1.80B	1.73B
Cash Flow		Free Cash Flow
233.97M	344.29M	258.41M	-116.30M	195.18M	253.13M
	Operating Cash Flow
313.12M	425.31M	325.77M	-40.01M	250.12M	310.54M
	Investing Cash Flow
-384.90M	-387.21M	-68.58M	-6.09M	-59.48M	-41.70M
	Financing Cash Flow
87.48M	117.50M	-153.01M	-150.01M	-599.71M	147.59M

Flowserve Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 46.46 is below the 20-day moving average (MA) of 49.23, below the 50-day MA of 46.61, and below the 200-day MA of 53.07, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 14.49 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	82 Outperform	$11.84B	23.94	19.27%	0.93%	6.99%	23.25%
SPXC	78 Outperform	$7.21B	35.71	15.24%	―	10.78%	30.05%
GTES	77 Outperform	$5.59B	26.26	6.93%	―	-4.01%	-8.86%
GTLS	74 Outperform	$6.48B	29.10	9.07%	―	11.65%	340.94%
FLS	72 Outperform	$6.08B	21.79	14.00%	1.81%	4.23%	20.40%
MIR	66 Neutral	$4.62B	―	-0.68%	―	7.25%	87.34%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Flowserve Corporate Events

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.

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 Holds 2025 Annual Meeting with Key Decisions

On May 16, 2025, Flowserve held its virtual 2025 Annual Meeting with 114,371,672 shares present, representing 86.86% of eligible shares. During the meeting, shareholders elected directors for terms expiring in 2026, approved executive compensation, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and rejected a proposal to eliminate the one-year holding period requirement for calling a special shareholder meeting.

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 Reports Strong Q1 2025 Financial Results

Flowserve Corporation reported its financial results for the first quarter of 2025, showing a strong start to the year with significant growth in bookings and operating income. The company achieved first quarter bookings of $1.2 billion, with record aftermarket bookings and a notable increase in power bookings. Operating income rose by 17% compared to the previous year, and the company reaffirmed its full-year 2025 guidance, despite global uncertainties due to increasing tariffs.