Flowserve Corporation

Flowserve Corporation

FLSยทNYSE

$75.41

-0.63%
IndustrialsIndustrial - Machinery

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.

At a Glance

Live Snapshot
Market Cap$9.64B
EPS2.6600
P/E Ratio28.35
Earnings Date08/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 28.4).

Valuation inputs: P/E 28.4, earnings yield +3.5%, momentum -0.6%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +15.8%, ROIC +10.1%).

Profitability stack: net margin +7.3%, ROE +15.8%, ROIC +10.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +60.5%, momentum -0.6%, net margin +7.3%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

fls

Flowserve Corporation Market vs Earnings Trajectory

FLS ยท NYSE

Loading price and EPS data...

Flowserve Corporation

Flowserve Corporation Fair Value Envelope

FLS ยท NYSE

Our analysis suggests that FLS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $75.41, this represents a potential HIDDEN relative to our calculated worth for Flowserve Corporation.

Intrinsic Value
Current Price: $75.41
3Y+85.0%
5Y+166.0%
10Y+161.0%
3Y+31.0%
5Y+27.0%
10Y+18.0%
3Y+84.0%
5Y+165.0%
10Y+139.0%
3Y-1364.0%
5Y+63.0%
10Y+110.0%
3Y-474.0%
5Y+72.0%
10Y+188.0%
3Y+19.0%
5Y+7.0%
10Y+20.0%
Flowserve Corporation

Flowserve Corporation Profit Bridge

FLS ยท NYSE
Revenue4.73B
Cost of Goods Sold (3.09B)
Gross Profit1.64B
Operating Expenses (1.02B)
Operating Income613.89M
Interest Expense (77.64M)
Other Income/Expense-88.49M
Pretax Income525.40M
Income Tax (155.60M)
Net Income346.25M
Net Income
346.25M

Profitability Analysis

Gross Margin

34.6%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

13.0%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

7.3%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

29.6%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

34.60%
Gross Profit Margin
8%
3Y+26.0%
5Y+11.0%
10Y+6.0%
12.98%
Operating Profit Margin
15%
3Y+143.0%
5Y+35.0%
10Y+22.0%
7.32%
Net Profit Margin
18%
3Y+40.0%
5Y+109.0%
10Y+101.0%
15.80%
Return on Equity
12%
3Y+53.0%
5Y+110.0%
10Y+80.0%
6.07%
Return on Assets
18%
3Y+54.0%
5Y+147.0%
10Y+98.0%
10.07%
Return on Invested Capital
3%
3Y+89.0%
5Y+70.0%
10Y+34.0%
FLS

Flowserve Corporation Cash Conversion Engine

FLS ยท NYSE
Net Income346.25M
Depreciation & Amortization95.45M
Stock-Based Compensation38.26M
Change in Working Capital28.55M
Others-50.58M
Capital Expenditures-70.93M
Free Cash Flow434.96M

Cash Flow Quality Analysis

FCF Conversion Rate

125.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

14.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+26.3%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$28.55M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

fls

Flowserve Corporation Funding & Solvency Profile

FLS ยท NYSE
Cash & Cash Equivalents792.35M
Net Receivables1.32B
Inventory809.58M
Other Current Assets136.20M
Total Current Assets3 B
Property, Plant & Equipment724.45M
Goodwill & Intangible Assets1.58B
Long-Term Investments254.00K
Other Non-Current Assets221.55M
Total Non-Current Assets946 M
Total Assets
5.73B

Financial Health Analysis

Current Ratio

2.22x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.51x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

53% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

fls

Flowserve Corporation Street Expectations Map

FLS ยท NYSE

Wall Street analysts project that FLS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 90.83, with estimates ranging from a low of 83.00 to a high of 98.00.

Lowest Target
83.00
10.06%
Consensus Target
90.83
20.45%
Highest Target
98.00
29.96%

The consensus 1-year price target stands at 90.83, with estimates ranging from a low of 83.00 to a high of 98.00.

Analyst Consensus Analysis

Upside Potential

+20.4%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

16.5% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

fls

Flowserve Corporation Insider Positioning

FLS ยท NYSE

During the last 12 months, insiders have purchased $232K and sold $14.34M worth of FLS shares, resulting in $14.11M of net selling activity.

3 Months

Bought

3.5K

231.61K

Sold

0

0.00

Net Activity

+232K

+$232K

3-6 Months

Bought

0

0.00

Sold

10.9K

978.36K

Net Activity

-978K

-$978K

6-9 Months

Bought

0

0.00

Sold

174.2K

12.30M

Net Activity

-12.3M

-$12.30M

9-12 Months

Bought

0

0.00

Sold

20.0K

1.06M

Net Activity

-1.1M

-$1.06M

Top Buyers

1
MMC

Mcmurray Michael C.

Director

2.5K sharesโ€ข1 transactions

$164K

2
SBD

Savoy Brian D

Director

1.0K sharesโ€ข1 transactions

$67K

Top Sellers

1
RRS

Rowe Robert Scott

Director, Officer: President & Ceo

114.9K sharesโ€ข1 transactions

$8.11M

2
SAB

Schwetz Amy B

Officer: Chief Financial Officer

47.0K sharesโ€ข1 transactions

$3.34M

3
WK

Wilson Kirk

Officer: President, Fcd

20.0K sharesโ€ข2 transactions

$1.06M

4
HSC

Hudson Susan Claire

Officer: Chief Legal Officer

10.7K sharesโ€ข1 transactions

$747K

5
MMC

Mcmurray Michael C.

Director

7.7K sharesโ€ข1 transactions

$689K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $14.11M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.02:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$232K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Selling

5 insider sellers vs. 2 buyers. Widespread selling across multiple insiders may signal concerns.

0.29%
Dividend Yield
-7%
3Y-52.0%
5Y-45.0%
10Y-32.0%
ย 

fls Dividend History

FLS
10Y CAGR +1%
Latest $0.22
Annual $1.07
5 year growth trend
Last Period: +0%