One-glance verdict
Overvalued
$58.12 our estimate vs market $80.99
Wall Street consensus: $90.00 (54.9% higher than our fair-value estimate)
39% above our estimate, beyond the bull case
Fundamentals snapshot
Flowserve Corporation
FLS · NYQ · Industrials · Specialty Industrial Machinery
Current price
$80.99
52-week range
$45.11 - $92.41
Market cap
$10.35B
Balance sheet
Watch
6.68x Adequate
Net debt $1.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 17.1% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 15.1% above its 5-year average P/E.
- Risk Insider ownership is only 0.6% (peer median: 0.7%).
What this company does
Flowserve Corporation
Flowserve builds and maintains the crucial pumps, valves, and seals used to manage liquids and gases in essential industries like energy, chemical production, and water management. The company makes money not just from selling new equipment but also from providing repairs and replacement parts, which can lead to more predictable recurring revenue (money a company expects to receive from its customers regularly). Since these industries rely on Flowserve's products to operate, the company's performance is closely linked to large-scale industrial spending around the world.
How the company got here
Flowserve's roots go back to 1790 with a company called Simpson & Thompson, but the modern company was formed in 1997. It was created through the merger of two large industrial equipment companies, BW/IP and Durco International. Since then, Flowserve has grown by acquiring other companies with specialized products. This strategy has made it one of the world's largest suppliers of machinery for industries that handle liquids and gases.
What it actually does
Flowserve makes and services equipment that moves and controls the flow of liquids and gases for industrial companies. Think of them as providing the essential 'plumbing' for major industries like oil and gas, power generation, chemical processing, and water management. Their products, such as pumps, valves, and seals, are critical for these industries to operate safely and efficiently. They also provide services to help customers install, maintain, and upgrade this equipment to keep everything running smoothly.
Flowserve Pumps Division (FPD)
This is a major part of the company that designs, manufactures, and services a wide variety of pumps and mechanical seals. Industrial companies buy these pumps to move everything from water to chemicals to oil through their facilities. The division also provides mechanical seals, which are crucial components that prevent leaks in rotating equipment. This segment offers both highly customized, specially designed pumps and more standard industrial models.
Flow Control Division (FCD)
This segment focuses on valves and automation equipment that control the flow of materials. Customers in industries like power and chemical processing use these products to manage the movement of liquids and gases within their systems. This division offers a broad portfolio of valves, as well as the automated systems that open, close, and regulate them. They also provide services to maintain and repair these complex flow control systems.
What management is betting on now
Flowserve's current strategy, which they call their '3D' strategy, focuses on three key areas: Diversification, Decarbonization, and Digitization. Diversification means expanding into new markets to be less reliant on any single industry. Decarbonization involves developing products for growing green-energy sectors like hydrogen and carbon capture. Digitization refers to incorporating smart technology into their products, such as predictive maintenance tools that help customers anticipate and prevent equipment failures.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$-27.46M
FY2024 Q3
$154.60M
FY2024 Q4
$168.50M
FY2025 Q1
$-61.67M
FY2025 Q2
$137.54M
FY2025 Q3
$384.65M
FY2025 Q4
$-25.57M
FY2026 Q1
$-59.98M
Revenue
$0.00
Net income
$81.68M
Diluted EPS
0.64
Operating cash flow
$-43.08M
Free cash flow
$-59.98M
Fetching…
Sources
Revenue
$0.00
Net income
$-28.99M
Diluted EPS
-0.21
Operating cash flow
$-174.00K
Free cash flow
$-25.57M
Fetching…
Sources
Revenue
$0.00
Net income
$219.58M
Diluted EPS
1.67
Operating cash flow
$401.85M
Free cash flow
$384.65M
Fetching…
Sources
Revenue
$0.00
Net income
$81.75M
Diluted EPS
0.62
Operating cash flow
$154.15M
Free cash flow
$137.54M
Fetching…
Sources
Revenue
$0.00
Net income
$73.91M
Diluted EPS
0.56
Operating cash flow
$-49.93M
Free cash flow
$-61.67M
Fetching…
Sources
Revenue
$0.00
Net income
$77.54M
Diluted EPS
0.59
Operating cash flow
$197.35M
Free cash flow
$168.50M
Fetching…
Sources
Revenue
$1.13B
Net income
$58.38M
Diluted EPS
0.44
Operating cash flow
$178.49M
Free cash flow
$154.60M
Fetching…
Sources
Revenue
$1.16B
Net income
$72.62M
Diluted EPS
0.55
Operating cash flow
$-12.78M
Free cash flow
$-27.46M
Fetching…
Sources
Is it cheap or expensive?
Fair value $58.12 vs current price $80.99
Wall Street consensus is the average analyst price target: $90.00 (54.9% higher than our fair-value estimate).
Our most-likely fair value is $58.12 a share — about 28.2% below today's price of $80.99, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.1B. Interest coverage 6.7x.
Net debt
$1.10B
Interest coverage
6.68x
Flowserve Corporation's profit covers its interest bill about 6.7 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
FLS
BASELINE
Flowserve Corporation
Total debt $1.89B Interest coverage 6.68x This is the baseline the peer rows are being compared against.
Total debt $3.96B Interest coverage 14.23x +113% vs FLS Carries about 2.1x more debt cushion than FLS.
Total debt $52.89M Interest coverage 211.11x +3,060% vs FLS Carries about 31.6x more debt cushion than FLS.
Total debt $1.90B Interest coverage 11.18x +67% vs FLS Carries about 1.7x more debt cushion than FLS.
Total debt $674.00M Interest coverage 7.32x +10% vs FLS Has roughly the same debt cushion as FLS.
Total debt $1.21B Interest coverage 37.54x +462% vs FLS Carries about 5.6x more debt cushion than FLS.
What you should know
The case for and against FLS
3 Rewards
2 Risks
Rewards
-
Returns 17.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 29.8x P/E vs peer median 34.5x (13.6% cheaper).
Risks
-
Stock trades 15.1% above its 5-year average P/E.
-
Insider ownership is only 0.6% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.78x
Forward P/E
17.55x
P/B
4.67x
P/S
2.22x
EV/EBITDA
15.36x
PEG ratio
1.92x
Profitability
How much profit each dollar creates
Gross margin
35.5%
Operating margin
13.4%
Net margin
7.6%
ROE
17.1%
ROA
7.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.83x
Current ratio
2.22x
Quick ratio
1.53x
Total debt
$1.89B
Total cash
$792.35M
Growth
How the business has been compounding
Revenue TTM
$0.00
Revenue 5Y CAGR
—
EPS TTM
2.72
EPS 5Y CAGR
22.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$512.74M
Free CF TTM
$434.96M
FCF margin
9.3%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
31.2%
Last ex-div date
2026-06-26