One-glance verdict
Overvalued
$2.27 our estimate vs market $5.80
Wall Street consensus: $8.50 (273.9% higher than our fair-value estimate)
155% above our estimate, beyond the bull case
Fundamentals snapshot
Flexible Solutions International, Inc.
FSI · ASE · Basic Materials · Specialty Chemicals
Current price
$5.80
52-week range
$4.85 - $10.50
Market cap
$74.08M
Balance sheet
Watch
5.82x Adequate
Net debt $1.78M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Operating margin compressed from 16.1% to -29.2% over 3 years.
- Risk Net debt grew 20.5% over 3 years.
- Risk Return on equity was -4.0% last year — the company lost money on shareholders' equity.
What this company does
Flexible Solutions International, Inc.
Flexible Solutions International makes specialty chemicals that help conserve resources, primarily by slowing water evaporation. The company earns money selling products that help farmers use fertilizer more efficiently and that form a thin, invisible layer on swimming pools to reduce water loss. This matters because their solutions help various industries, from agriculture to energy, save money and operate more sustainably.
How the company got here
Flexible Solutions International started in 1991 primarily making chemicals for swimming pools to reduce water evaporation. Over the years, it expanded by acquiring other companies and developing new technologies. A key turning point was the 2004 acquisition of assets from Donlar Corp., which formed the basis of its biodegradable products business. This shifted the company from a simple pool chemical supplier to a broader 'environmental technology' company focused on saving water and energy in various industries. Now, it operates as a holding company (a company that owns other companies' stock) with several subsidiaries.
What it actually does
Flexible Solutions creates specialty chemicals that are often biodegradable (capable of being broken down naturally). Think of them as high-tech ingredients that solve specific problems. For example, one of their products forms an invisible, ultra-thin layer on a swimming pool to keep water from evaporating and save on heating bills. They also make products that help fertilizers work better in soil, prevent clogs in irrigation systems, and stop mineral buildup in oilfield pipes. The company is increasingly using its chemical manufacturing expertise to make specialized food-grade products and nutritional supplements.
Energy and Water Conservation Products
This part of the business sells products that help conserve water and energy. Its best-known products are HEATSAVR and WaterSavr, which are like 'liquid blankets' for swimming pools and large bodies of water like reservoirs. They form a safe, invisible layer on the surface that dramatically slows down evaporation, saving both water and, for heated pools, energy. Customers include pool owners, hotels, and municipal water departments. This is the original and more established part of the company.
Biodegradable Polymers
This is the larger and more diverse part of the company, operating through a subsidiary called NanoChem Solutions. It creates biodegradable polymers (complex molecules that can be broken down by organisms) from natural ingredients like amino acids. These polymers are used as ingredients by other companies in many different industries. For example, they are sold to agricultural companies to make fertilizers more effective, to oil companies to prevent pipe corrosion (the gradual destruction of materials by chemical reaction), and to detergent makers to help cleaning products work better.
What management is betting on now
The company's main strategy is a major push into manufacturing food-grade products and nutritional supplements. Management believes this area offers higher margins (the percentage of revenue a company keeps after accounting for the costs of producing the goods). They have invested in getting their facilities FDA-approved and have secured multi-million dollar contracts to produce these specialized ingredients for other companies. To support this growth, they are shifting the production of their older industrial and agricultural products to a new factory in Panama, freeing up space in their U.S. plant for the new food-grade business.
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 Q3
$997.95K
FY2024 Q4
$-5.79M
FY2025 Q1
$-898.41K
FY2025 Q2
$4.31M
FY2025 Q3
$39.44K
FY2025 Q4
$-4.04M
FY2026 Q1
$-4.05M
FY2026 Q2
$4.57M
Revenue
$7.61M
Net income
$-1.91M
Diluted EPS
-0.15
Operating cash flow
$5.31M
Free cash flow
$4.57M
Fetching…
Sources
Revenue
$8.30M
Net income
$-241.42K
Diluted EPS
-0.02
Operating cash flow
$-1.82M
Free cash flow
$-4.05M
Fetching…
Sources
Revenue
$9.12M
Net income
$-460.93K
Diluted EPS
-0.03
Operating cash flow
$-2.98M
Free cash flow
$-4.04M
Fetching…
Sources
Revenue
$10.56M
Net income
$-503.36K
Diluted EPS
-0.04
Operating cash flow
$2.02M
Free cash flow
$39.44K
Fetching…
Sources
Revenue
$11.37M
Net income
$2.03M
Diluted EPS
0.15
Operating cash flow
$5.28M
Free cash flow
$4.31M
Fetching…
Sources
Revenue
$7.47M
Net income
$-277.73K
Diluted EPS
-0.02
Operating cash flow
$-544.29K
Free cash flow
$-898.41K
Fetching…
Sources
Revenue
$9.17M
Net income
$679.65K
Diluted EPS
0.05
Operating cash flow
$-3.71M
Free cash flow
$-5.79M
Fetching…
Sources
Revenue
$9.31M
Net income
$611.86K
Diluted EPS
0.05
Operating cash flow
$2.21M
Free cash flow
$997.95K
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.27 vs current price $5.80
Wall Street consensus is the average analyst price target: $8.50 (273.9% higher than our fair-value estimate).
Our most-likely fair value is $2.27 a share — about 60.8% below today's price of $5.80, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.8M. Interest coverage 5.8x.
Net debt
$1.78M
Interest coverage
5.82x
Flexible Solutions International, Inc.'s profit covers its interest bill about 5.8 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
FSI
BASELINE
Flexible Solutions International, Inc.
Total debt $10.10M Interest coverage 5.82x This is the baseline the peer rows are being compared against.
Total debt $15.75M Interest coverage -9.96x -100% vs FSI This peer has almost no interest-payment cushion compared with FSI.
Total debt $15.15M Interest coverage 120.49x +1,969% vs FSI Carries about 20.7x more debt cushion than FSI.
Total debt $3.01M Interest coverage -40.03x -100% vs FSI This peer has almost no interest-payment cushion compared with FSI.
Total debt $324.00K Interest coverage -346.34x -100% vs FSI This peer has almost no interest-payment cushion compared with FSI.
Total debt $546.44M Interest coverage 2.29x -61% vs FSI Carries about 2.5x less debt cushion than FSI.
What you should know
The case for and against FSI
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Operating margin compressed from 16.1% to -29.2% over 3 years.
-
Net debt grew 20.5% over 3 years.
-
Return on equity was -4.0% last year — the company lost money on shareholders' equity.
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)
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Forward P/E
18.13x
P/B
2.00x
P/S
2.08x
EV/EBITDA
678.30x
PEG ratio
7.67x
Profitability
How much profit each dollar creates
Gross margin
19.1%
Operating margin
-29.2%
Net margin
-8.8%
ROE
-4.0%
ROA
-2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.25x
Current ratio
2.82x
Quick ratio
1.24x
Total debt
$10.10M
Total cash
$8.32M
Growth
How the business has been compounding
Revenue TTM
$35.58M
Revenue 5Y CAGR
2.9%
EPS TTM
-0.25
EPS 5Y CAGR
-52.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.54M
Free CF TTM
$-591.71K
FCF margin
-1.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2025-05-19