Flowserve (FLS) AI Stock Analysis

Flowserve

(BMV:FLS)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Record backlog and bookingsStrong bookings and a record backlog provide substantial revenue visibility beyond the current quarter. The 1.12x book-to-bill ratio and 20% backlog growth support future growth, improve capacity planning, and indicate durable demand across Flowserve’s end markets.

Negative Factors

Weaker cash conversionThe sharp decline in free cash flow indicates that reported earnings are currently converting less efficiently into cash. Working-capital requirements, delayed shipments, and slower collections can constrain debt reduction, investment, and shareholder returns if the weaker conversion persists.

Flowserve (FLS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 10.02B
Dividend Yield: 0.70%
Average Volume (3M): ―
Price to Earnings (P/E): 39.5
Beta (1Y): 0.16
Revenue Growth: -10.11%
EPS Growth: -48.35%
Country: Mexico
Employees: 16,000
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Flowserve Business Overview & Revenue Model

Company Description

Flowserve Corporation is a global enterprise that specializes in the conception, creation, distribution, and upkeep of industrial equipment crucial for managing fluid movement. The company extends its reach across the United States, Europe, the Middl...

Flowserve Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 22, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Strong bookings, record backlog, margin expansion, earnings growth, healthy cash generation, improving segment performance, and progress on long-term operational initiatives outweighed the acknowledged challenges from the Middle East, deferred maintenance, lower organic sales, reduced free cash flow conversion guidance, and specific FCD headwinds.

Positive Updates

Strong Third-Quarter Bookings and Earnings Growth

Bookings grew 14% year over year to $1.4 billion, adjusted operating margin expanded 170 basis points to 16.5%, and adjusted earnings per share grew 19% to $1.07. Management attributed the results to disciplined execution through the Flowserve business system and solid demand across end markets.

Negative Updates

Middle East Disruption Reduced Sales

The Middle East created an approximately $40 million sales headwind in the third quarter, modestly larger than expected. Business conditions worsened in October, with customer site access and equipment acceptance affecting deliveries and run-rate product and service work.

Company Guidance

Flowserve now anticipates full year organic sales to decline 1.5% to 2.5% and total sales to grow 2% to 3%; full year EPS is expected to range from $4.10 to $4.20, with the midpoint representing 14% EPS growth and assuming roughly 150-basis-points of margin expansion versus last year, while full year 2026 free cash flow conversion is expected to be approximately 80% adjusted net earnings. Fourth quarter organic sales growth is expected in the mid-single-digit and total sales growth in the low double digits, with fourth quarter adjusted operating margin expected to expand sequentially from the third quarter. The company is on track for roughly 16% adjusted operating margin this year, expects mid-single-digit organic bookings growth for the full year, believes the eightytwenty program can deliver at least 2 more years of margin improvement, and remains focused on its 20% adjusted operating margin target for 2030.

Flowserve Risk Analysis

Flowserve disclosed 28 risk factors in its most recent earnings report. Flowserve reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Flowserve Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:FLS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEX	79Outperform	$17.18B	32.39	13.31%	1.24%	6.93%	14.08%
DOV	77Outperform	$27.63B	24.07	15.43%	1.00%	8.24%	-47.25%
ITT	75Outperform	$17.75B	38.77	10.35%	0.76%	28.07%	-19.95%
GRC	72Outperform	$1.90B	25.69	16.92%	1.06%	6.48%	46.20%
CR	69Neutral	$11.45B	33.79	15.90%	0.50%	21.54%	5.62%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

MX:FLS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:FLS	Flowserve	1304.13	535.64	69.70%
DOV	Dover Corporation	207.74	31.31	17.74%
GRC	Gorman-rupp	71.93	27.80	62.99%
IEX	Idex Corporation	233.84	68.26	41.22%
ITT	ITT Corporation	198.50	14.13	7.67%
CR	Crane Company	198.02	10.81	5.77%

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.

Flowserve AI Stock Analysis