One-glance verdict
Overvalued
$43.59 our estimate vs market $71.39
Wall Street consensus: $89.10 (104.4% higher than our fair-value estimate)
64% above our estimate, beyond the bull case
Fundamentals snapshot
Flowserve Corporation
FLS · NYQ · Industrials · Specialty Industrial Machinery
Current price
$71.39
52-week range
$48.71 - $92.41
Market cap
$9.07B
Balance sheet
Watch
6.68x Adequate
Net debt $1.59B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 16.9% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Reward Trades at 24.9x P/E vs peer median 32.1x (22.6% cheaper).
- Risk Insider ownership is only 0.6% (peer median: 0.8%).
What this company does
Flowserve Corporation
Flowserve builds and maintains the specialized pumps, valves, and seals that control the flow of liquids and gases for major industries like oil refineries, power plants, and chemical factories. A large part of its revenue (the money a company brings in from sales) comes from servicing this equipment through repairs and replacement parts long after the initial sale. This is important because this steady service business can provide more predictable income compared to relying only on large, less frequent new equipment projects.
How the company got here
Flowserve's roots trace back to a London workshop founded in 1790, but the modern company was formed in 1997 through the merger of two industrial equipment makers, BW/IP and Durco International. This combination created a more comprehensive supplier of products that manage the flow of liquids and gases. A key turning point was the 2000 acquisition of Ingersoll-Dresser Pump, which significantly increased the company's size and the number of its products installed in industrial plants worldwide. Over the years, Flowserve has grown by acquiring other companies with specialized products, evolving from a collection of brands into an integrated global provider of pumps, seals, and valves.
What it actually does
Flowserve makes and services the essential, heavy-duty equipment that moves and controls liquids and gases in large industrial facilities. Think of them as providing the heart and arteries for factories that produce things like gasoline, chemicals, power, and clean water. Their products include powerful pumps, durable seals to prevent leaks, and precise valves that start, stop, and regulate flow. They also provide services like installation, repairs, and upgrades for this equipment, which is critical for their customers' operations.
Flowserve Pumps Division (FPD)
This is Flowserve's largest business segment, responsible for designing, manufacturing, and servicing a wide variety of industrial pumps and pump systems. These aren't pumps you'd find at a hardware store; they are highly engineered machines built to handle everything from water to corrosive chemicals and high-temperature oil in demanding environments like refineries, power plants, and chemical factories. This division also provides replacement parts and services for its massive base of installed pumps, which creates a steady, recurring stream of business.
Flow Control Division (FCD)
This segment focuses on the equipment that directs and controls the flow of fluids, which is a crucial part of any industrial process. It produces a broad portfolio of industrial valves, including those that isolate or control flow, along with the automation systems (like actuators and positioners) that operate them. These products are essential for ensuring safety and efficiency in industries such as oil and gas, chemical processing, and water management. This division's products are often used in the same facilities as the pumps from the FPD segment.
What management is betting on now
Management is focused on a strategy they call “3D”: Diversification, Decarbonization, and Digitization. This means they are expanding into markets beyond their traditional oil and gas base, such as water management and power generation, including nuclear and renewable energy. They are also developing products for the energy transition, like those used in carbon capture and hydrogen production, to help customers reduce emissions. Finally, they are adding digital technology to their products, such as sensors for predictive maintenance (fixing a part before it breaks), to provide more value and create new service opportunities.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
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
FY2026 Q2
$112.34M
Revenue
$0.00
Net income
$99.00M
Diluted EPS
0.77
Operating cash flow
$129.25M
Free cash flow
$112.34M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $43.59 vs current price $71.39
Wall Street consensus is the average analyst price target: $89.10 (104.4% higher than our fair-value estimate).
Our most-likely fair value is $43.59 a share — about 38.9% below today's price of $71.39, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.6B. Interest coverage 6.7x.
Net debt
$1.59B
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 $2.32B Interest coverage 6.68x This is the baseline the peer rows are being compared against.
Total debt $614.70M Interest coverage 7.32x +10% vs FLS Has roughly the same debt cushion as FLS.
Total debt $52.21M Interest coverage 211.11x +3,060% vs FLS Carries about 31.6x more debt cushion than FLS.
Total debt $1.89B Interest coverage 11.18x +67% vs FLS Carries about 1.7x more debt cushion than FLS.
Total debt $3.83B Interest coverage 14.23x +113% vs FLS Carries about 2.1x more debt cushion than FLS.
Total debt $1.12B 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
1 Risk
Rewards
-
Returns 16.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 24.9x P/E vs peer median 32.1x (22.6% cheaper).
Risks
-
Insider ownership is only 0.6% (peer median: 0.8%).
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)
24.87x
Forward P/E
15.35x
P/B
4.02x
P/S
1.96x
EV/EBITDA
14.97x
PEG ratio
1.59x
Profitability
How much profit each dollar creates
Gross margin
35.1%
Operating margin
13.9%
Net margin
8.0%
ROE
16.9%
ROA
6.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.00x
Current ratio
2.15x
Quick ratio
1.47x
Total debt
$2.32B
Total cash
$731.01M
Growth
How the business has been compounding
Revenue TTM
$0.00
Revenue 5Y CAGR
—
EPS TTM
2.87
EPS 5Y CAGR
22.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$487.84M
Free CF TTM
$434.96M
FCF margin
9.4%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
30.0%
Last ex-div date
2026-09-25